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Labor Alert – May 2019

ALERT – LABOR

Termination Certificate for CTS severance pay withdrawal. If the employer does not issue the Termination Certificate, it will be issued by the Labor Inspection Authority. The Supreme Executive Order No. 005-2019-TR has regulated this procedure as follows:

(i) The worker shall submit the following documents to the Inspection Authority:

  1. Request identifying the worker, the employer and the CTS custodian bank.
  2. Copy of the document proving the termination (social benefits settlement, work certificate, etc.) In the absence thereof, the Authority will verify the termination by an inspection.
  3. Copy of the document proving the CTS account ownership.

(ii) Said Certificate is issued within fifteen (15) business days.

(iii) The procedure is subject to positive administrative silence.

Procedures to be recorded in the union registry. The Supreme Executive Order No. 006-2019-TR establishes the registry of specific union procedures registry. In general terms, it works as follows: 

These procedures are automatically approved and are dealt with in a single instance by the Deputy Division of General Registry of the respective Regional Labor Division. The automatic recording certificate is issued within five (5) days.