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Covid-19

Labor contract review

Article 50 of the Substantive Labor Code establishes the possibility of a contract review. This figure is applicable in situations of unforeseeable and serious economic alterations and requires and explicit agreement between the parties.

Upon the unforeseeable and serious economic alterations caused by the COVID-19 pandemic, this can be an alternative to be implemented by employers so that employment contracts can be amended in accordance with Article 50 of the Substantive Labor Code.

 It is important to note that if the parties cannot reach an agreement, they must resort to the labor judge, who will only be competent to decide on the occurrence or not of an unforeseeable and serious economic alteration. In that sense, the judge will not be allowed to review the contract itself.