On April 14, the Executive Branch issued Emergency Decree No. 038-2020, which establishes a package of extraordinary economic and financial measures to mitigate the economic effects caused by the COVID-19 pandemic affecting private sector workers and employers. The measure is effective as of today.
The measures include regulations postponing the payment of Employee Severance Indemnities (CTS, for its acronym in Spanish) corresponding to May 2020 to November this year. The CTS is a social benefit granted to workers as a form of insurance in the face of future contingencies that may occur after the termination of their employment relationship to cover their needs.
The measure exceptionally authorizes employers to request the “complete labor suspension” of those workers covered by the microenterprise labor regime. In this context, the government has created a scheme called the “Economic Benefit for Emergency Social Protection in the face of the Coronavirus Pandemic” for these workers as-and-when they receive a gross remuneration of up to 2,400 soles (US$ 709).
The complete labor suspension consists of the interruption of the labor relationship between an employer and his worker for a period of time, after which the working relationship may be resumed.
In other news, the Superintendency of Banking, Insurance and Private Pension Fund Administrators (SBS, for its acronym in Spanish), adopted SBS Resolution N ° 1281-2020, updating the terms for entities under its supervision so that these can file complaints related to the securities in their power.