At the beginning of this year, the Congressional Labor Commission issued a favorable opinion for initiative 6452, which seeks to reform art. 96 of the Labor Code. The following are the key aspects of the matter:
I- Article 96: Unseizable salary and reform of the percentage of seizure
The minimum wage set annually by the Executive Body through the Ministry of Labor and Social Welfare is unseizable in its entirety. This would imply that no judicial authority may authorize the seizure of sums constituting a worker’s minimum monthly wage, thus guaranteeing their access to basic resources for their subsistence and that of their family.
As for salaries that exceed the monthly minimum, the initiative proposes that 80% of the excess amount be exempt from seizure. In other words, only the remaining 20% may be subject to seizure for civil obligations, provided that such seizure does not affect the provisions of the previous paragraph.
It is important to clarify that the initiative to reform the seizure limits from 35% to 20% would only apply to civil obligations, without affecting the seizure limits for alimony (up to 50%), which would remain regulated under current provisions.
II- Article 97: Procedure in case of wage garnishment
The initiative proposes adding to art. 97 of the Labor Code a new obligation for employers, in those cases where a court orders an attachment on the wages or benefits of a worker. In these cases, the employer must immediately notify the corresponding court through an official letter indicating:
- The existence of the attachment.
- The amount affected by it.
- Any incident that could alter its compliance.
This official letter must be written in clear and simple terms and submitted within a period of no more than five (5) working days from notification of the attachment order. To facilitate compliance with this obligation, the notification does not require the intervention of a lawyer, as its purpose is merely informative.
III- Aspects to be questioned
Initiative 6452 indicates, in art. 3, the addition to art. 97 of the Labor Code where it establishes that, in the event that a seizure is ordered on a worker’s wages or benefits, the employer must immediately inform the court by means of an official letter, indicating the existence of the seizure, the amount affected and any incidents. However, non-waivable benefits, such as the Christmas bonus, the annual bonus for private and public sector workers – the “Bono 14” – and severance pay (where applicable), are unattachable.
Therefore, this aspect must be analyzed or it could be subject to discussion through an unconstitutionality, since, if the initiative is approved, it would imply a reduction and affect the rights acquired by the worker. Likewise, this would make it riskier to grant credit to those who are in a dependent relationship, by virtue of the fact that workers could only be held liable for civil obligations up to 20% of their salary and, therefore, the repercussion is an increase in the cost of consumer credit.
This initiative received a favorable opinion from the Labor Commission, which means that it will move forward in the approval process and we will report any progress it may make in the Congress of the Republic.