Officials aim to simplify terminations based on legitimate reasons
In the government of Luis Montenegro, a draft bill is currently under discussion that aims to simplify dismissal procedures for micro, small, and medium-sized enterprises (SMEs). The main proposal is to make it easier for these businesses to proceed with just cause dismissals based on acts attributable to the worker [1][5].
The proposed changes could involve adjustments to evidence and witness requirements, making it less legally encumbered for SMEs to fire employees. However, there are potential constitutional concerns regarding how these changes align with constitutional protections for workers' rights and due process [1].
Although specific constitutional objections have not been detailed in the available sources, typical concerns in such reforms include ensuring that workers receive fair treatment and that employers do not obtain excessive power to dismiss employees without sufficient justification or safeguards. As of early August 2025, the draft labor law is still under discussion among social partners (employers and workers), and political negotiation phases are forthcoming [1].
It is important to note that the proposed change aligns with a previous law, but that previous law was ruled unconstitutional for violating the right to defense [2]. The draft bill is intended to modify the current law regarding employee termination procedures in small and medium-sized businesses [3].
The proposed change excludes large enterprises, applying only to businesses with fewer than 250 employees [4]. If passed, the draft bill would allow these smaller businesses to fire employees without providing evidence or hearing witnesses requested by employees [6]. However, the draft bill does not currently specify how the right to defense will be protected in the new proposed procedures [7].
The Business Journal reported on Tuesday about the proposed change in employee termination procedures for small and medium-sized businesses [8]. Once the bill has gone through Social Concertation and Parliament, it will be subject to further discussion and potential amendments before being passed into law [9].
In summary, the draft bill proposes easing dismissal procedures for SMEs, particularly just cause dismissals based on worker actions [5]. This could involve adjustments to evidence and witness requirements, making firings less legally encumbered. However, the bill is still subject to discussion with social partners, and political negotiation phases are forthcoming [1]. Constitutional concerns likely relate to safeguarding workers' rights and due process amid these procedural simplifications, though these concerns have not been explicitly spelled out yet in public sources.
- The proposed draft bill, under discussion in the government of Luis Montenegro, is associated with the field of 'policy-and-legislation', as it aims to modify the current law regarding employee termination procedures in small and medium-sized businesses.
- The 'science' of constitutional law may be instrumental in assessing the feasibility of this draft bill, given the potential constitutional concerns about its alignment with workers' rights and due process.
- The 'health-and-wellness' and 'workplace-wellness' implications of this proposed legislation can be debated, as the draft bill could impact the job security of workers in these businesses, which might, in turn, affect their mental and emotional well-being.
