THE PARADOX OF COLLECTIVE DISMISSALS AFTER THE ABOLITION OF ADMINISTRATIVE APPROVAL

Abstract

The striking of the administrative approval in the scope of collective dismissals has been made in order to alter the traditional procedures of restructuring companies. The objective was to overcome the negative effects that the administrative approval used to produce, specifically the increase in periods for collective dismissals as well as the increase in severance compensations. However, based on the experience that it almost lasts a year since the Labour Reform was passed, the following weaknesses in the new collective dismissal procedure can be pointed out: the deficiency of legislation when focusing in the causes, problems that came up in relation to the consultation period and agreement signatures, as well as the paradox derived from the costs related to termination of contracts. The mentioned problems are some of the circumstances that lead us to maintain a reasonable doubt of the Labour Reform´s advantages and obliges us to keep thinking carefully about the collective dismissal and its different effects.