Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - Peru - 2019
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- Law on Productivity and Labour Competitiveness [LPCL] of 27 March 1997 as amended by Act Nº 30367, protecting working mothers against arbitrary dismissals and increasing maternity leave of November 2015 (Ley de Productividad y Competitividad Laboral, Decreto Supremo No. 003-97-TR, 2103-97 - in Spanish only), as well as amended by Law No. 30709 (Ley 30709 de 27 de diciembre de 2017) and Legislative Decree No. 1246 (Decreto Legislativo 1246 de 9 de octubre de 2016)
Date: 25 Nov 2015; view website » (view in NATLEX »)
- Regulation on Productivity and Labour Competitiveness [RPLP] of 26 Januray 1996, as last amended by D. S. Nº 007-2017-TR of May 2017.(Reglamento del TUO de la Ley de Productividad y Competitividad Laboral, Decreto Supremo N° 001-96-TR - in Spanish only)
Date: 31 May 2017; view website »
- Productive Development and Corporate Growth Act of December 2013 (Texto Único Ordenado de la Ley de Impulso al Desarrollo Productivo y Crecimiento Empresarial, Decreto Supremo 013-2013-PRODUCE)
Date: 28 Dec 2013; view website »
- Compensation for the Length of Service Law, as last amended by Act No. 30408 of December 2015 (Texto Unico Ordenado del Decreto Legislativo No 650, Ley de Compensación por Tiempo de Servicios. Decreto Supremo N° 001-97-TR - in Spanish only)
Date: Dec 2015; view website »
- New Labour Procedure Law [NLPL], No 29497 of 2010, adopted on 13 January 2010, as last amended by Law No 30229 of June 2014(Ley núm. 29497, Nueva Ley Procesal del Trabajo- only in Spanish).
Date: 14 Jul 2014
Compensation for unfair dismissal - free determination by court: No
Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
1) Arbitrary dismissal (= a valid reason has not been given or cannot be legally substantiated): No right to be reinstated, the worker is only entitled to compensation, as follows:
- Ordinary compensation = 1.5 month's wages for each year of service up to a maximum of 12 months' wages.
- Compensation in micro enterprises: 10 days for each year of service up to a maximum of 90 days' wages.
- Compensation in small enterprises: 20 days' wages for each year of service up to a maximum of 120 days' wages.
2) Dismissal based on prohibited grounds :
The dismissal is null and the worker shall be reinstated but in complying with the decision he or she may opt for compensation, the amount of which is the same as compensation for arbitrary dismissal (see 1)).
- - See sec. 34 and 38 LPCL (general rules).
On the specific compensation for arbitrary dismissal in micro and small enterprises, see Law on Micro and Small Enterprises [MSE], consolidated version of 2008, art. 47. Pursuant to that law, a micro enterprise is an enterprise employing 1 to 10 workers and whose maximum annual sales do not exceed 150 tributary tax units (Unidades Impositivas Tributarias (UIT)).
A small enterprise is an enterprise employing 1 to 100 workers and whose maximum annual sales do not exceed 1700 tributary tax units (see art. 5 MSE)
- In the event of a constructive dismissal, the worker may choose to bring an injunction against the employer's actions or he or she may choose termination of the contract. In case of such termination, he or she will be entitled to the payment of compensation equivalent to compensation for arbitrary dismissal (art. 30 LPCL)
- Please note that compensation for arbitrary dismissal (art. 38 LPCL) is also due in the event the employer does not observe the preferential right of workers to be re-employed by their former employer within a year of a collective dismissal (art. 52 LPCL)
Reinstatement available: Yes
- - If a dismissal is declared null and void (that means that the dismissal was based on prohibited grounds), reinstatement is mandatory. However, in complying with the decision the worker may opt for compensation instead (art. 34 LPCL)
- There is no right to reinstatement in the event of an arbitrary dismissal (= a valid reason has not been given or cannot be legally substantiated). Compensation is the only available remedy is such case (art. 34 LPCL)
Preliminary mandatory conciliation: Yes
- - The New Labour Procedure Law [NLPL], No 29497, in force from 15 July 2010 foresees a preliminary mandatory conciliation hearing and contains a much more detailed provision on the modalities of such preliminary hearing (art. 43).
Competent court(s) / tribunal(s): labour court
- The New Labour Procedure Law [NLPL], establishes a hierarchy of courts to adjudicate labour disputes, consisting of the Magistrates Courts (Juzgados de Paz Letrados), the Labor Courts of First Instance (Juzgados de Trabajo), the Labour Branches of the High Court (Salas Laborales de la Corte Superior), and the Supreme Court (Corte Suprema). Dismissal cases are heard by the Labour Courts of First Instance (Juzgados de Trabajo). The extinction of the working relationship is observed by Specialized Labour Court as indicated in art. 2 and 51 of the NLPL.
Existing arbitration: Yes
- Arbitration is recognized as a valid labour dispute resolution mechanism under certain conditions in the New Labour Procedure Law of 2010 (applicable from 15/07/2010): see supplementary provision 6).