Withdrawal of severance payments, compensation benefits of two (2) SMLV

Published: March 27, 2020
Withdrawal of severance payments, compensation benefits of two (2) SMLV

The President of the Republic, in order to mitigate the effects on employment, quality of life and productive activity in the situation of the COVID-19 coronavirus, adopts measures that promote the continuity of companies and businesses, the standard of living of workers and their families.

By means of Decree 488 of March 27, 2020, there are a series of measures, among the most outstanding are the possibility of withdrawing severance payments to those who have presented a decrease in their monthly income, they may withdraw from their severance payments, on a monthly basis, the amount of their decreased income to compensate the reduction and keep their income constant.

Likewise, measures are adopted for the employer to grant early, collective or accumulated vacations, even if requested by the employee on a voluntary basis, at the same times.

In addition, the unemployed dependent or independent workers who have made contributions to the Family Compensation Fund continuously or discontinuously during the last five (5) years in categories A or B, may request two (2) Minimum Legal Wages in Force, distributed for three months with a value of $653,771 per month for three (3) months.

Applications, approvals and payments will be made virtually to the systems to which each person is entitled due to the declared sanitary emergency.