2026News

Severance pay and trial-periods stymie passage of new Labor Code

The president of the Chamber of Deputies, Alfredo Pacheco, has announced that the major differences between labor and management regarding such issues as severance pay and trial-periods of work, have forced the lower congressional house to set aside the proposed reforms to the Labor Code until the next legislative session.

The new proposals include coverage of remote work and changes in the working day. However, there are some 10-12 issues that remain quite contentious, some disputed by labor and others by management.

In his statements, Pacheco noted that the legislative issue will not expire, but rather, since the present legislature recesses on Monday, 12 January, it should be undertaken once again in the next session of Congress that begins on 27 February.

Read more in Spanish:
Listin Diario
Listin Diario

12 January 2026