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Ministry will no longer be responsible for paying profits to former employees

Posted On 24 Sep 2014

ministro-relaciones-laboralesFrom 2015, employers will have to assume the payment of profits to their former employees. Currently, when entrepreneurs were unable to locate former employees, they delivered the amount to be paid to the Ministry of Labour Relations, and that body was responsible for the distribution.

Carlos Marx Carrasco, Minister for Industrial Relations, said that with the reform of the Code, decree or ministerial agreement, the companies will be ordered to undertake this activity.

The term will be of one year and if not delivered during that time, the amount must be deposited in the treasury.

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