Organic Law of Humanitarian Support to combat the Health crisis derived from Covid-19

Support measures for Reactivation

Published S.R.O. No. 229 june 22 2020

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PROHIBITION OF EVICTION IN THE MATTER OF TENANCY (Art.4) 

Cancel at least twenty percent (20%) of the pending value. In the case of commercial premises, it is shown that their income has been affected by at least 30% compared to February 2020.

FACILITIES OF PAYMENT TO SOCIAL SECURITY (Art.9) 

Natural persons who carry out economic activities, micro and small companies, as well as the remaining companies and cooperatives of goods and services that were closed during the state of emergency, who have not made the payment of their obligations with the social security corresponding to the months of March, April, May and June of the year 2020, can be done without the generation of interest, fines, or surcharges; Likewise, no employer liability will be generated.

PRODUCTIVE CREDITS FINANCIAL INSTITUTIONS

Financial entities that from April 2020 and until December 31, 2020, grant credits to MIPYMES, of ordinary commercial type, productive or microcredit, higher than 25,000 dollars, for a minimum term of 48 months, can be deducted from the tax 50% of the value of the interest received for payment of these loans to the rent.

JPRMYF RESOLUTIONS

Within 10 days following the effective date of this law, they must issue resolutions that require:

1.- The review of interest rates for all credit segments, during the years 2020 and 2021.

MEASURES FOR THE SUSTAINABILITY OF EMPLOYMENT

OF THE AGREEMENTS FOR THE PRESERVATION OF WORK SOURCES 

The workers and eventually may, by common agreement, modify the economic conditions of the employment relationship in order to preserve the sources of work and stable stability for the workers.

The agreement may be proposed by both workers and specifics.

We ask them to present, clearly and completely, the support for the need to sign them, so that the worker can make an informed decision. 

Once the agreements are signed, these requirements will be reported to the Ministry of Labor, who will supervise their compliance.

The agreement will be bilateral and direct between each worker and the employer. If the worker is dismissed within the first year of validity of this Law, the corresponding compensation will be calculated with the last remuneration received by the worker before the agreement.

The agreements can be challenged by third parties, including in cases where there has been any type of fraud to the detriment of one or more creditors. If the judge presumes the existence of a crime related to the conclusion of the agreement, which is known as taxation for the corresponding investigations and actions.

MINIMUM CONDITIONS FOR THE VALIDITY OF THE AGREEMENTS 

  1. The required financial statements have presented to the worker the financial statements of the company. 
  2. The resources may not distribute dividends corresponding to the years in the current agreements in force, nor reduce the capital of the company during the term of the agreements. 
  3. In the event that agreements are reached with the majority of the workers, they will be mandatory even for those workers who are not the subscribers and are enforceable against third parties. 

In the case of negotiation of the current collective contract, the agreement will be signed between the legitimate representatives of the workers and the employer.

EMERGING SPECIAL CONTRACT

Work contract for a defined time that is entered into for the sustainability of production and sources of income in emerging situations or for new investments or lines of business, by natural or legal persons, new or affected, or in the case of greater needs demand for production or services in the employer’s activities.

It will be held for a maximum term of two (2) years and it may be renewed only once for the same term.

The ordinary working day that is the object of this contract may be partial or complete, with a minimum of twenty (20) and a maximum of forty (40) hours per week, distributed over a maximum of six (6) days a week without exceeding eight (8) hours a day, and their remuneration and legal benefits will be proportional, according to the agreed day.

At the end of the contract term or if the termination is given by unilateral decision of the employer or worker before the indicated term, the worker will have the right to pay the pending remunerations, the eviction bonus and all the benefits of the law calculated in accordance with the Code of Work.

If the agreed term ends, the employment relationship is continued, the contract is considered indefinite. 

OF THE EMERGING REDUCTION OF THE WORKING DAY

Due to events of force majeure or duly justified acts of God, the employer may reduce the working day, up to a maximum of 50%, owing the worker’s remuneration not less than 55% of that previously fixed to the reduction; and the social security contribution to be paid based on reduced hours.

The employer must notify the labor authority, indicating the period of application of the reduced working hours and the payroll of the personnel to whom the measure will apply.

This reduction can reduce for up to one year (1) year and renewable for the same period, only once. The remuneration corresponding to the reduction of the working day must be proportional to the hours actually worked, in terms of their remuneration prior to the reduction of the working day.

As of the implementation of the reduced working hours and during the time it lasts, the companies that have implemented the reduced working hours will not be able to distribute dividends.

In the event of dismissals, the severance pay and bonuses for eviction will be calculated on the last monthly remuneration received by the worker before the reduction of the working day, in addition to any other sanction established by law for this breach.

The permits, during the two years following the publication of this Law in the OR, can unilaterally notify the worker with the schedule of their vacations or, in turn, establish compensation for those days of absence from work as vacations already accrued.

INTERPRETATIVE PROVISIONS

Unique.- Interpret number 6 of article 169 of the Labor Code, in the following sense: In these cases, the impossibility of carrying out the work due to unforeseen circumstances or force majeure will be linked to the total and definitive economic activity of the employer, Be a natural or legal person. This means that there will be impossibility when the work cannot be carried out both by the usual physical means and by alternative means that are successful in its execution, not even by telematic means.

MEASURES FOR THE MANAGEMENT OF OBLIGATIONS

Article 27.- Of the pre-bankruptcy agreement.

By mutual agreement, debtors may sign exceptional pre-bankruptcy agreements with their creditors through which conditions, terms and the reduction, capitalization or restructuring of outstanding obligations of any nature can be established.

The pre-bankruptcy agreements signed the effects provided for in article 2362 of the Civil Code.

Pre-insolvency agreements can be agreed in mediation, for which the parties will go to mediation centers registered with the Judicial Council.

SUPPORT MEASURES TAX

(DG3.) Income tax taxpayers can make voluntary advances in favor of the treasury, in which case the corresponding interest will be recognized in their favor.

, calculated from the date of payment to the expiration date of the tax obligation, in accordance with the provisions of Article 22 of the Tax Code

(DT2.) Those taxpayers who request the Payment Facility with Remission referred to in Article 2 of the Law for Productive Development, Investment Attraction and Employment Generation and that from January 2020 to the date of publication of this Law failed to comply with two or more established quotas, said non-payment may not be considered as non-compliant, having to activate the payment facility, affecting the taxpayer to cover the total capital owed until September 2020.

(DT3.) For those taxpayers who request the exceptional payment plan of up to twelve (12) months, referred to in the First Transitory Provision of the Tax Simplification and Progressivity Law and who, upon publication of this Law, failed to comply with some of the the established quotas, said non-payment may not be considered as non-compliance, and the exceptional plan granted must be activated ex officio, for a period not exceeding 12 months.

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