Employment
LOTTT with strong job stability and near-total dismissal restrictions
The 2012 Ley Orgánica del Trabajo, los Trabajadores y las Trabajadoras (LOTTT) provides exceptionally strong protection: dismissal without a ground authorised by a labour inspector is generally prohibited, and successive executive decrees have extended a general inamovilidad laboral shielding most workers from dismissal. Severance and a double indemnity apply where dismissal is unjustified.
Key rules
- Jurisdiction — National, enforced by labour inspectorates and labour courts
- Deadline — Working week: 40 hours
- Deadline — Annual leave: 15 days rising with seniority
- Deadline — Claims limitation: 10 years for prestaciones sociales
Governing law
- Ley Orgánica del Trabajo, los Trabajadores y las Trabajadoras2012
- Executive decrees extending inamovilidad laboral
In practice
The requirement of prior administrative authorisation to dismiss (calificación de despido before the inspectoría) inverts the usual sequence: the employer must obtain permission first rather than defend a claim afterwards, and reinstatement orders are the standard remedy. Hyperinflation has made the legal minimum wage nominal in practice, with compensation delivered largely through bonuses and food allowances outside the wage base.