An employer may be bound to an offer of financial compensation made to an employee in the negotiation of a severance payment, even though no agreement is reached with the employee. That is the outcome of a recent manifestly unreasonable dismissal procedure at the court of appeal in The Hague.

In the underlying case the

Rights of employees upon redundancy of their position and in the case of any resulting termination of the employee’s employment will depend upon whether the employee falls into the Federal employment and industrial relations jurisdiction (National System Employees) or under the jurisdiction of the State in which the employee works.

National System Employees

Employees’ rights on redundancy in Venezuela

The general rule under the Venezuelan Labor Law is that, no worker can be dismissed without just cause unless she/he is offered an indemnity for dismissal equal to the amount of her/his seniority benefit and she/he accepts it – Job Stability -. However, since 2002, workers are protected with