The new employee dismissal regulation program is adjusting its motives and in the process becoming virtually inaccessible to mid and small-size companies.
A 2010 labor reform bill allowed companies to fire employees if its financial losses related to structural problems such as surplus workers or high labor costs. Now that law is being retooled, and it looks like the government will not permit companies to fire people because of financial losses alone.
They are going to demand a tedious bureaucratic process that large companies will deal with easily, but small ones will suffer through.
Large companies have the resources to successfully face difficult paperwork and legislation, but smaller companies who lack a substantial administrative infrastructure and the economic capacity required to meet such varied and profuse documentation requirements are discriminated against.
To provide the audits, reports, statements, accounting statements and social benefits plans required of the new legislation, the typical small company could lose hope struggle to survive.
The employee dismissal program are close to avoiding a close that would release staff members, damaging creditors and auxiliary companies along the way. But these are issues that the government should have considered long ago when elaborating a watered down labor reform.
Regulatory development can only solidify alterations to its timid plan. And with the collective bargaining, the key point has not been confronted: how to adjust work schedules, shifts and salaries without getting rid of many employees.
