Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - Peru - 2010
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- Law on Productivity and Labour Competitiveness [LPCL] of 27 March 1997 as amended up to Act Nº 28051 of 02-08-2003. (Ley de Productividad y Competitividad Laboral, Decreto Supremo No. 003-97-TR, 2103-97 - in Spanish only)
Date: 02 Aug 2003; view website » (view in NATLEX »)
- Regulation on Productivity and Labour Competitiveness [RPLP] of 26 januray 1996, as last amended by D. S. Nº 011-2001-TR dated 01-05-2001.(Reglamento del TUO de la Ley de Productividad y Competitividad Laboral, Decreto Supremo N° 001-96-TR - in Spanish only)
Date: 01 May 2001; view website »
- Law on Micro and Small Enterprises [MSE], consolidated version of 2008
(Texto Único Ordenado de la Ley de Promoción de la Competitividad, Formalización y Desarrollo de la Micro y Pequeña Empresa y del Acceso al Empleo Decente, Ley MYPE, Decreto Supremo 007-2008 - in Spanish only)
Date: 30 Sep 2008; view website »
- Labour Procedure Law [LPL], No 26636/1996, dated 21 June 1996 consolidated version as last amended by Act No. 27942 of 2003 (Ley Nº 26636 - Ley Procesal del Trabajo - in Spanish only),
(This Law will be abrogated as of 15 July 2010)
Date: 26 Feb 2003; view website » (view in NATLEX »)
- New Labour Procedure Law [NLPL], No 29497 of 2010, adopted on 13 January 2010 (Ley núm. 29497, Nueva Ley Procesal del Trabajo- only in Spanish).
Note: This Act which repeals the 1996 Labour Procedure Law will enter into force on 15 July 2010. (view in NATLEX »)
- Compensation for the Length of Service Law, consolidated version (Texto Unico Ordenado de la Ley de Compensación por Tiempo de Servicios. Decreto Supremo N° 001-97-TRR - in Spanish only); view website »
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. 38 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
- - Art. 66 of the current Labour Procedure Law [LPL], No 26636/1996 in force until 15 July 2010 stipulates that the judge must invite the parties to conciliate.
- 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 current Labour Procedure Law [LPL], No 26636/1996 establishes a hierarchy of courts to adjudicate labor 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). They must be brought within 30 calendar days of the act (art. 36 LPCL)
There have not been any changes in this respect in the New Labour Procedure Law [NLPL], No 29497 of 2010, in force from 15 July 2010 (see art. 2 on the jurisdiction of the Specialized Labour Courts).
Existing arbitration: Yes
- See Labour Procedure Law, No 26636/1996 (applicable until 15/07/2010): art. 104: labour disputes can be submitted to arbitration.
Arbitration is also 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).