Asuncion, IP Agency.- The Ministry of Labour, Employment and Social Security (Mtess) published a technical report, prepared by the Labour Observatory, regarding the significant number of dismissals that occur around ten years after employment. In this sense, it maintains that the figure of job stability should not be an obstacle to the continuity of formal employment in the country.
The study reveals that the length of service of workers is influencing their permanence, and that most do not reach the 10 years required to access absolute job stability, which generates concern in the formal labor market.
According to an analysis of data from the Social Security Institute (IPS), only 13.7% of contributing workers reach 10 years of seniority in the same company, a key threshold that grants special job stability or inamovibility. The remaining 86.3% of workers are dismissed before reaching this period, which suggests that employers resort to dismissal before the absolute stability regulations are activated.
The report also highlights that, starting at 9.5 years of seniority, a 19% decrease in the number of contributors in companies is observed, and this trend increases up to 37% in the following month, which reinforces the hypothesis that many employers prefer to dismiss workers before they achieve special stability.
Reduction in job stability
The National Statistics Institute’s (INE) Permanent Household Survey (EPHC) shows that only 26% of private sector workers have worked for 10 years or more in the same establishment, a figure that has decreased by 4.5 percentage points since 2013. This trend is reflected homogeneously in the different sectors of the economy, but is especially marked in sectors such as commerce, restaurants and hotels, where only 22.9% of workers have 10 years of seniority.
On the other hand, the report reveals that, in the case of workers with 10 years or more of seniority, 74% of company exit communications occur by “mutual consent,” which suggests that dismissals are often agreed upon without going to court.
Faced with this situation, the Minister of Labor, Mónica Recalde, has stressed the need to review the current legal framework to ensure that both workers and employers have fair and effective mechanisms to maintain formal employment:
“Our commitment is to protect workers’ rights without affecting the development of companies. We need a legal framework that encourages employees to stay in their jobs and that, at the same time, is fair for employers. Job stability should not be seen as an obstacle, but as a means to improve working conditions and promote the growth of formal employment in the country.”
Towards a balanced solution
The MTESS considers it essential to open a space for broad and participatory dialogue between all actors in the labour market – workers, employers and experts – to analyse and propose adjustments to the Labour Code. The objective is to guarantee continuity in formal employment, without the seniority of workers becoming a cause for premature dismissal.
In addition, it is proposed to review current mechanisms, such as double compensation and lengthy litigation for unjustified dismissal, which generate high costs for both parties. The MTESS is committed to finding solutions that benefit both workers and employers, protecting formal employment and promoting more stable and equitable working conditions.
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2024-09-21 06:12:17
