Out-of-court settlement in labour matter.

The Federal Labour Act provides for protective or voluntary procedures; these are all matters which, by their nature or at the request of an interested party, require the intervention of the Conciliation and Arbitration Board, without there being any jurisdictional conflict between the parties identified and in which an out-of-court settlement is reached.

In these proceedings, the worker, trade union or employer concerned may attend the competent Board, requesting orally or in writing the intervention of the latter and expressly indicating the person whose statement is required, the thing to be exhibited, or the diligence requested is carried out.

Some of the steps that are carried through a paraprocesal procedure are:

• Notice of termination of individual employment contract.
• Ratification and approval of agreements or settlements, as well as payment of settlements.
• Request for statement of persons, display of things or practice of out-of-court proceedings.
• Authorization to work for children under 16 who have not completed compulsory education.
• Request to employer for written record of days worked and wages. • Granting of deposits or bonds, as well as their cancellation or return.
• Suspension of payment for profit sharing.

When workers and employers arrive at an agreement or liquidation of a worker, they may, out of court, go to the Conciliation and Arbitration Board to request the approval and ratification of the out-of-court settlement concluded between the parties, to the satisfaction of the Board concerned. Agreements terminating the employment relationship shall provide a breakdown of the amount paid to the worker in respect of wages, accrued benefits and profit-sharing.

The concluded out-of-court settlement will be approved by the competent Conciliation and Arbitration Board, when it does not affect the rights of the workers and will have definitive effects, therefore they will be elevated to the category of Enforceable Award.

In Bandala | Díaz | García we have years of experience in cases of subjects: Fiscal, Mercantile, Accounting, Labor and Administrative; so, we are at your disposal for any doubt about it.

LEGAL NOTICE

The main purpose of this information is to provide guidance to the general public. It does not replace the provisions of applicable law. Nor does it replace the specialized legal advice or consultancy that can be offered by any of the lawyers and/or accountants of Bandala | Díaz | García