Wednesday , April 14 2021

Government Studies to reduce or eliminate compensation for years of service – Economy

Government Studies to reduce or eliminate compensation for years of service

The idea would be part of the Labor Modernization project, which will be presented in December, and is in line with what the OECD recommends . "She needs to take on strengthening the importance of unemployment insurance," said Finance Minister Felipe Larra. Tvn


The Government, through ministries Finance and Work, confirms, in line with the OECD's recommendations, working on the concept of inclusion in the Labor Modernization Project which will present in December, the idea of reduce or eliminate compensation for years of work at work.

According to the Labor Minister, Nicolás Monckeberg, "Sometimes we have rules that leave employees who are vacated in jobs and encourage them from searching for new opportunities. (…) And sometimes we have rules that let employees who have hang in jobs and encourage them from searching for new ones. opportunities. "

As with this topic, we will also try to promote teleworking and labor flexibility.

Compensation for years of service is a long-standing right in our country and that has been a change in recent decades. For example, until 1981 indemnities were unlimited.

From that year up to the present, he has been modified to pay 30 days for each year worked, with a maximum of 11 years. What is being worked on today, The idea is 5 to 6 years with wages from each event.

It should be noted that this labor law is absent in many countries such as Switzerland, Sweden, the United States, Japan, New Zealand and the Netherlands. However, the above countries have much more robust unemployment insurance systems than us.

In that sense, an owner The Treasury, Felipe Larra, states in the Executive "We are aware that any changes made in this regard must have to strengthen the importance of unemployment insurance".

Although the economic authority explains that "something has not defined", it corresponds to "ideas raised and we are in an evaluation process." The Labor Minister is working on this issue to present this project, but we do not have a definitive term ".


According to OECD figures, of the 38 countries that form an organization Chile has the most expensive redundancy cost for employees with 10 years of service in the same company. They follow Mexico and then Spain.

Those who support the idea of ​​making modifications of this type to the current system say that this helps flexibility and change jobs with more security.


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