Legal reform affecting domestic workers, expected to be published this week in the Official State Gazette, keeps most of the current compensation amounts in place while introducing new safeguards. The reform requires households to provide written justification for any dismissal, creating an additional layer of protection for workers and reducing the vulnerability they have faced historically. In most cases, however, the total severance a household pays when ending an employee will resemble the amounts paid to other workers under the broader social security regime.
The principal innovation goes beyond the mandatory unemployment contribution, which starts on October 1, and ends the practice of “withdrawal.” This practice allowed households to dismiss workers without notice, often with minimal compensation and under the pretense of lost trust. Previously, workers could be dismissed with a brief notice period and modest severance, typically for a year of service or less, and were told they had to prove loss of trust.
The final draft submitted to the Cabinet last Tuesday introduces three key factors for allowed dismissals: first, a reduction in the family unit’s income or a sudden rise in expenses; for instance, if a family member loses a job or a private caregiver is needed by another arrangement. The second is a significant change in the family’s needs, such as the caregiver no longer being required because the person they cared for has passed away. The third is a loss of trust in the employee, which must be based on reasonable and proportionate grounds, according to the text.
The first scenario aligns with the concept of objective dismissal under the general regime, with a corresponding compensation for 20 days of work per year served. The second scenario mirrors organizational dismissal under the general regime, also with 20 days of wages per year of service. In both cases, the domestic worker would earn less under the new rules. The third scenario resembles dismissal for reasons of trust, but with different compensation rules that favor a higher than average payout while potentially allowing firings to occur with fewer constraints than the broader workforce would face.
7 to 12 days notice
Separately, compensation is provided when a family terminates the employment relationship. The employer must inform and justify the dismissal in writing and offer advance notice. If the worker has been employed for less than a year, the notice period is seven days; if more than a year, the period extends to twenty days. For full-time workers, six hours of paid leave per week are available to search for new employment, a provision that existed under prior legislation as well.
Alternatively, the family can provide compensation in lieu of notice, paying for the days already worked. This option could create challenges for workers living on the premises, as the family could honor the dismissal with a monetary settlement while ending the contract and leaving the worker without guaranteed housing or a place to sleep at night. The reform aims to balance worker protection with the ability of households to adjust staffing in response to changing circumstances, a tension familiar to many families in North American contexts as well [Source: Official State Gazette].