| 1. Consumers%u2019 Rights - Modification of Law 24.240 Law 24.999 published in the Official Gazette on July 30, 1998 modified Law 24.240 (see 20.121) in various aspects that had been included in the original law but had been vetoed by the Executive Power. The principal changes are: A.- Guarantees When non-consumable movable goods are sold the user and successive purchasers have a legal guaranty for any kind of defects even those ostensible or existing at the time of the contract if these affect the identity between what was offered and what was delivered and its correct functioning. This guaranty subsists for three months since the date of delivery. B.- Joint Liability The law establishes joint liability between all those that form part of the commercial chain of sale. e.g. from the producer through the manufacturer, importer, distributor, provider, the owner of the brand under which the product is sold to the final seller. The transport company is responsible for all damages incurred during or on account of its service. 2. Labor Reform Law The Labor Reform Law 25.013 was published in the Official Gazette on September 24, 1998 establishing that it would enter into effect on October 3, 1998. A.- The law repeals all the "promoted" employment contracts (see 14.113). Those in force will continue to have legal effects until the term established in them expires. New rules are established for the training-employment agreement and the employment for practice of young people agreement. B.- New Termination rules are established for all labor contracts initiated after the date of effectiveness of the Labor Reform Law. a) Prior Notice: (see 14.145) For the employee 15 days prior notice, for the employer 15 days if the employee has a seniority of more than 30 days and less than 3 months, 1 month when the seniority is between 3 months and 5 years and 2 months wen the seniority is more than 5 years. Prior notice begins on the day after notification of same, and not from the first day of the month following service of notice. b) Compensation for seniority in cases of dismissal without cause: 1/12 of the best normal and habitual monthly remuneration collected during the last year for each month of service or fraction over 10 days. The same maximum is applied and the minimum is 2/12 of the salary calculated as mentioned herein. c) Compensation for seniority in cases of dismissal when force majeure of lack of or decrease of work: In this case the seniority payment is 1/18 of the remuneration calculated in the same way and the maximum does not change but the minimum payment is reduced to 2/18 of the salary calculated as mentioned herein. d) Cases of discrimination: If dismissal originated in a discrimination caused by race, sex or religion a 30% increase of the seniority payment is established.
C.- Ultra retroactivity of labor contracts (see 14.169) Labor contracts celebrated up to December 31, 1998 that were not renewed or modified will expire two years after a request is presented by any of the signatories thereof before the Labor Ministry. D.- Joint Liability The law imposes joint liability in all cases when the employer outsources contracts or subcontracts any work that corresponds to the normal and specific activity of the business. The party outsourcing its labor force must also request and is responsible for uncompliance with, proof of the existence of registration of all the workers before social security, receipts of payment of remuneration, signed copies of payments to social security, the existence of banking current account and an insurance regarding labor risks. |