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Covid-19

Contract suspension due to force majeure

Numeral 1 of Article 51 of the Substantive Labor Code gives the possibility to the employer to suspend a labor contract when conditions of force majeure prevent the contract from further development.

In our reasoning, the current situation satisfies the requirements on Article 64 of the Civil Code about force majeure: an unbearable and unforeseeable event. According to this, the employer can suspend the labor contracts giving immediate notice to the labor inspector of the Labor Ministry which has to verify the circumstance. 

In this event, the employee’s obligation to render the service and the employer’s obligation to pay the salaries are interrupted. Nevertheless, the employer must continue paying the contributions to the Social Security system according to Article 53 of the Substantive Labor Code.

According to Article 52 of the Substantive Labor Code, once the force majeure event has been overcome, the employer must give formal notice to the employee on the date that services will be resume. 

We hope this information is useful to determine which is the best option for the employers upon the situation we are all living.