The Constitutional Court, through Judgment No. 49-20-IN/25, analyzed various articles of the Organic Law for Humanitarian Support (hereinafter “LOAH”) and declared Article 19 partially unconstitutional. This article regulated the Special Emergency Contract, which the Court perceived as potentially infringing on essential labor rights.
The Constitutional Court ruled that the Special Emergency Contract remains in force and may be used in situations beyond those arising from the pandemic, provided its use is justified in temporary scenarios aimed at preserving employment, production, business expansion, or new investments.
The ruling clarified that early and unilateral termination by the employer entails the payment of severance compensation as stipulated in the Labor Code for cases of unfair dismissal.
Finally, the Court encourages the National Assembly to review the validity of the LOAH and consider possible reforms aimed at ensuring economic viability and legal certainty in employment.
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This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.
