• Published in the Supplement to Official Gazette Nº 820, dated August 17, 2016, regulating the Organic Law for the Promotion of Juvenile Work, exceptional regulation of the Work Day, Settlement and Unemployment Insurance, in effect as of March 28, 2016.

JUVENILE WORK

• Juvenile contracts are considered those signed by individuals between the ages of 18 and 26. They must be entered into in writing and registered in the Information System of the Ministry of Labor.
• In order to apply the benefit set forth in Article 34.3 of the Labor Code[1] (hereinafter CT), a first job will be considered for juveniles that have not had more than 6 months of a continuous full-time work relationship; likewise, substitution will be considered, and there will be no ability to apply the benefit in the event of replacement made to occupy the place of workers who have been fired or that have had an authorized exit from work against the employer.
• Companies with less than 50 employees are not subject to control with regards to a minimum percentage of juvenile employees.

Based on the activity, the minimum number of juvenile employees working at each company, with regards to the net increase in workers each fiscal year, is the following:

Following the entry into force of the Organic Law for the Productive Development, Attraction of Investment, Employment Creation, Stability and Fiscal Balance, the Companies, Securities and Insurance Superintendence, has resolved to provide legal standards for it’s application by means of decision No. SCVS-INC-DNCD-2018-0035, rendered on September 6, 2018.

The remission of debts apply on moratorium interests, penalties, costs of enforced collection procedures, press releases in accordance with Articles 47 and 48 of the Companies Act, and other charges derived of Companies, Securities and Insurance Superintendence liabilities, until August 21, 2018. In order to begin the remission procedure, the concerned party must present a request in this entity.

Nevertheless, it is important to stress that the non-compliance of liabilities produce penalties that are not subject to the application of this Law. Oh the other hand, the liabilities coming due after August 21, 2018, and tax obligations of 2017 could not apply this provision.

From August 21, 2018, the concerned party has 90 business days in order to pay the debt capital and apply the remission granted by the Law. In addition to that, for the parties it is possible to request payment facilities that could be granted for one year, and it is not imperative to credit the 20% of the debt, as required in the Tax Code.
Additionally, when the concerned party violates the facilities, in more than two consecutive contributions, the remission looses its effect and the debt could be charged in its entirety.

For payments made before August 21, 2018, those should be charged as installments of the liabilities and not for the interests, yet if those exceed the whole amount of the obligation. In these cases, the remission is applied over the interests, and then, the concerned party that has not paid the whole amount of the obligation, must pay within the stated time limit in the Organic Law for the Productive Development, Attraction of Investment, Employment Creation, Stability and Fiscal Balance.

Finally, the resolution establishes that de debts that are being collected by means of enforced procedures could be discontinued when the concerned party request a remission over this liability within the 30 days after the entry on force of the Law. Those periods of suspension could be not considered as prescription period.