Quevedo & Ponce - Noticias Legales

The special emergent contract was declared unconstitutional by the Constitutional Court

March 11th, 2025
Quevedo & Ponce

The Constitutional Court analyzed the constitutionality of article 19 of the Organic Law of Humanitarian Support, related to the emerging special contract; and, by ruling 49-20-IN/25, determined that it violates the principle of intangibility of labor rights by allowing the employer to unilaterally terminate the contract without compensation. For this reason, it declared said provision partially unconstitutional, nullifying the possibility of finalyzing the contract before the deadline without payment of compensation.

Despite this ruling, the emergent contract remains in effect with the following characteristics:

It can be signed for a maximum of one year, renewable once.
It is not exclusively linked to the pandemic but can be applied to any temporary situation that justifies the need to ensure business sustainability.
If the employer terminates the contract unilaterally before its term, compensation for unfair dismissal will be required.
The contract becomes indefinite if the employment relationship continues after the term ends.

The Court also reminded the National Assembly to evaluate the Humanitarian Support Law and modify it if necessary, to ensure it meets its objectives. Additionally, it emphasized that the Ministry of Labor must oversee the proper use of the emergent contract to prevent violation.

At Quevedo & Ponce, we are experts in labor and constitutional law, providing effective consultancy on matters such as emergent contracts. Contact us to protect your rights and ensure successful legal solutions.

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