The Labor Agreement Permits Staff Reductions Through


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It should be noted that the MHRSS pointed out that employers could not lend their employees for profit. Neither the former nor the new employer may participate in illegal mailings under the name “Workforce Sharing”, nor may they induce workers to register as individual industrial and commercial households in order to avoid the employment obligation. The MHRSS statement also provides compliance implications for new types of employment in a very short time frame. The employment contract is considered permanent, except in the cases provided for by law (Law 230 of 1962). Fixed-term contracts are permitted insofar as they are justified by reasons such as seasonal work, replacement of workers on sick or maternity leave and extraordinary and occasional work. Under Act No. 56 of 1987, collective agreements may allow for other cases of use of fixed-term contracts. Until recently, a violation of the legal requirements for fixed-term contracts resulted in employers generally being required to recruit the worker for an indefinite period. However, more recently, the 196 Act of 1997 (the “Fidelity Act”) has limited this sanction to persistent offences. If the employment lasts ten days beyond the expiry date, the employer is obliged to pay 20% more remuneration; an additional 40 per cent for 20 days beyond the end date; and only then must the contract be transformed into a contract of indefinite duration. A fixed-term contract is considered permanent even if the worker is rehired in less than ten or twenty days from the expiry (ten days for contracts of less than six months` duration; 20 days for contracts of six months` duration or more). The legislative power is composed of two chambers, namely the Senato (315 seats) and the Camera (630 seats), without there being any significant differences in competences. What is more, anyone who has been President of the Republic is a senator by right and for life, unless he renounces the investiture.

In addition, the President of the Republic may appoint five citizens as senators for life who, by their outstanding performance in the social, scientific, artistic and literary fields (art. . . .

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