Labor Law

Law No. 21,643 (Ley N° 21.643), known as the Karin Law, amended the Labor Code (Código del Trabajo) to prevent, investigate, and punish workplace harassment, sexual harassment, and violence at work. It requires every employer, public and private, to have a prevention protocol, to provide a channel for receiving complaints, and to carry out an investigation with a gender perspective and due process within the legal deadlines. The law is built on the principle of a workplace free of violence, so compliance is not optional: the lack of a protocol or of a proper investigation exposes the company to penalties and lawsuits.

If you believe your dismissal was unjustified, wrongful, or improper, you can file a claim before the Labor Court (Juzgado de Letras del Trabajo) so that it is declared as such and payment of the statutory severance compensation plus the applicable surcharges is ordered. The general deadline to bring the claim is sixty business days counted from the date of separation; that period is suspended if you file a complaint with the Labor Inspectorate (Inspección del Trabajo) and resumes once that procedure ends, subject to a maximum cap. Given how short these deadlines are, it is advisable to gather the contract, pay slips, and dismissal letter as soon as possible, and to seek counsel so as not to lose the claim.

The so-called nullity of dismissal, or Bustos Law (Ley Bustos), applies when, at the end of the contract, the employer has not paid the worker’s social security contributions in full. In that case, the dismissal does not have the effect of ending the obligation to pay remuneration: the employer must keep paying wages and other benefits until it validates the dismissal by paying the contributions owed and notifying the worker of that payment. It is an important protective tool, so it is worth checking the status of the contributions before accepting a termination settlement (finiquito).

The deadlines depend on what is being claimed. To challenge a dismissal, the general deadline is sixty business days from the date of separation, which is suspended while a complaint is being processed before the Labor Inspectorate (Inspección del Trabajo). For claiming benefits arising from the contract (wages, vacation pay, overtime), longer prescription periods apply, counted, depending on the case, from the date the obligation became due or from the end of the employment relationship. Since each action has its own deadline, the prudent course is to review the situation as soon as the dispute arises so as not to run out of time.

Constructive dismissal (despido indirecto or autodespido) applies when it is the employer who commits a serious breach, for example failing to pay wages or social security contributions, breaching the obligations of the contract, or engaging in harassment. In that scenario, the worker can terminate the contract attributing the cause to the employer and sue for payment of severance compensation, as if they had been dismissed without justification. It is a delicate decision that requires solid proof of the breach and compliance with the formalities and deadlines, so it should be assessed with counsel before taking the step.

Law No. 21,643 (Ley N° 21.643) requires every employer to incorporate into its internal regulations a prevention protocol against workplace harassment, sexual harassment, and violence at work. That protocol must identify the risks, provide for prevention measures and for informing workers, and describe the complaint and investigation procedure, safeguarding confidentiality, impartiality, and defined deadlines, along with protective measures for the affected person while the process lasts. It must also provide for referral to the occupational insurance body (mutualidad) and follow-up of cases. Having a well-designed and properly applied protocol is both a legal obligation and a protection against future claims.