Venezuelan Labor Law bans layoffs not agreed with workers
The employment relationship will be terminated only if workers want to, even if he/she is given double severance payment
One of the goals of the new Venezuelan Labor Law is implementing absolute job stability of employees and workers. Such goal was attained. The legal instrument provides for absolute stability, except for dismissals for due cause.
In the absence of due cause, the only way for employers to terminate any employment relationship is workers' resignation. Not even double severance payment implies that a worker has been dismissed.
Yanet Aguiar, an attorney with Norton Rose firm, said that "the only way to terminate an employment relationship is worker's agreement; layoffs are no longer a unilateral decision of employers."
The new Organic Labor Law (Lottt) eliminates relative job stability and keeps absolute job stability only.
Following a wave of nationalizations carried out by the late President Hugo Chavez between 2007 and 2012, Venezuela has become the second most frequent respondent to investment treaty arbitration in the world (38 cases in total), after Argentina.