Law 27 of 1990.

Validity not verified
  • TypeLaw
  • 27
  • Date1990

Summary.

The law adds provisions to the Labor Code on workplace rules, performance assessment, and liability arising from business asset transfers. It also governs certain temporary contracts linked to increased employment.

What it covers.

  • Management of the business and approval of internal workplace rules.
  • Assessment of manifestly poor performance.
  • Certain temporary contracts and the consequences of asset transfers declared unlawful or unconstitutional.

Who it applies to.

  • Employers and workers.
  • Ministry of Labor and Social Welfare (Ministerio de Trabajo y Bienestar Social).
  • Beneficiaries of asset transfers declared unlawful or unconstitutional.

Key points.

  1. The employer directs the business and issues orders, instructions, rules, and guidelines to achieve its objectives.Art. 1
  2. The Ministry of Labor and Social Welfare (Ministerio de Trabajo y Bienestar Social) objects to or rejects internal workplace rules only when they breach the cited Labor Code provisions, and states the breach in a formal decision.Art. 1
  3. The Ministry has 120 calendar days from notification to the workers to approve or reject the internal rules; if it raises no objection or rejection within that period, the rules are deemed approved.Art. 2
  4. Manifestly poor performance is assessed under specific technical and professional evaluation systems and rules previously approved by the Ministry or agreed in a collective bargaining agreement.Art. 3
  5. New written contracts that exceed employment maintained on September 1, 1990, and are concluded during the specified period can be temporary and renewed once, for no more than 1 year in total.Art. 4
  6. Those fixed-term contracts include the employer’s right to terminate the employment relationship before the term expires, without liability on the employer’s part.Art. 4
  7. An asset transfer later declared unlawful or unconstitutional does not create business continuity or employer succession; the beneficiary is liable for the specified consequences and liabilities, subject to the exception for sham transactions or fraud.Art. 5

Validity and changes.

  • Labor Code (Código de Trabajo)Art. 1: adds paragraphs to Article 181
  • Labor Code (Código de Trabajo)Art. 2: adds a paragraph to Article 182
  • Labor Code (Código de Trabajo)Art. 3: amends item 16 of section A of Article 213
  • Labor Code (Código de Trabajo)Art. 5: adds item 6 to Article 14