Topic: Latin America

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International Group of Companies in Venezuela. The past, the present and the what´s next?

This post was contributed by Yanet C. Aguiar, Partner, Norton Rose Caracas and Valentina Albarrán, Associate, Norton Rose Caracas

Venezuela is no stranger to the existence and proliferation of Group of Companies or Business Groups, they have become a fundamental part of Venezuelan economy. However, throughout the last decade or so, we have witnessed the departure and reduction of many of them.

Naturally, the subject is intertwined with the economic life of our country, so it would seem odd that for quite some time the subject was reduced to a regulatory state (article 21 of the Regulations to … Continue Reading

Prior authorization to dismiss with cause a disadvantaged employee: Effective protection or abuse of same?

Many would have thought that the fact that a disadvantaged employee (either handicapped or suffering from a debilitating medical condition) has committed a serious breach, thus incurring in a cause of termination, would allow the employer to validly and unilaterally terminate her or his employment contract without prior authorization from the labor authority and without paying a legal indemnity.

The fact is that according to a recent ruling by the Constitutional Court, employers must obtain an authorization from the labor authority when seeking the unilateral termination of a disadvantaged employee.

This ruling was issued by the Constitutional Court following the … Continue Reading

Is Outsourcing prohibited under Venezuelan Labour Legislation?

Yes, Outsourcing is prohibited under Venezuelan New Labour Law as long as the contracting of third parties are made to simulate or defraud with the purpose of avoiding the application of the labor legislation.

1.         Definition of Outsourcing under the New Labour Law.

Outsourcing is understood to be the simulation or fraud committed by employers in order to distort, ignore or obstruct the application of the labor legislation. The administrative or judicial bodies have the competence to establish the corresponding liability.

Nevertheless, the contractor – defined as an entity that acts on its own behalf and executes work and services … Continue Reading