On November 28th, 2018, Law Nr. 21,122 was published in the Official Gazzette (hereinafter the "Law"). This Law introduced new provisions that thoroughly regulate employment contracts for specific tasks or services, which until now were barely mentioned in the Labor Code. The terms of this Law will be applicable to employment contracts for specific tasks or services executed as of January 1st, 2019.
Definition: The Law provides a definition for the employment contract for a specific task or service, stating that it is "the convention through which the employee obliges himself with his or her respective employer to execute a material or intellectual work, which is specific and determined in both its commencement and its conclusion, being the contract's term subject to the duration of such work. The different tasks or stages associated to a project or work cannot be subject to successive contracts of this type or else it will be understood that the contract is agreed for an indefinite term". The Law expressly excludes from this type of employment contracts, all those that involve the execution of permanent works or services, which -due to their nature- do not cease or conclude. Vacations: This Law grants the right to fifteen days of annual leave, with full payment of remuneration, to the employee who renders continuous services to the same employer by virtue of two or more contracts agreed for the completion of a specific task or service, provided that these contracts, considered altogether are in effect during at least one year. In these cases, the employee will have the possibility of deferring the payment of the proportional vacations, as long as there is an express statement in this regard in the labor discharge and general release document ("finiquito") executed at the end of each contract. Nevertheless, together with the last finiquito the employer shall pay the full amount represented by proportional vacations, provided that the payment has been deferred and the employment contracts have not exceeded one year of extension. Severance payment: The law establishes a severance...