Through Executive Decree No. 101 of July 13^th, 2020, the Ministry of Labor and Taskforce Development formalized the norm for the convention of the modification or temporary reduction of the working day, in compliance with one of the agreements reached in the Tripartite Dialogue Table for Economy and Labor Development.

The new norm establishes that the agreement to modify the working day must include the method to achieve the gradual recovery of the working hours to the levels existing before the crisis and that they should not affect the hourly rate agreed in the valid employment contract.

In addition, it was established that the maximum decrease can be of up to 50% of the working hours per month and that the effects of temporary modification, which are signed during this year 2020, will not be extended beyond December 31^st of this year.

The regulation states that discounts and withholdings will be adjusted in accordance with the salary resulting from the modification of the agreed working day, in accordance with the percentages established in article 161 of the Labor Code.

If you would like to download Executive Decree No. 101 of July 13^th, 2020, please click here