While it has not been a claim of business chambers or unions, as government officials admit it, The Nation’s Insurance Superintendence launched the “Labor Cessation Insurance” which aim to replace compensation for traditional dismissals.
So far there would be three sectors in which there would be interest: the sPrivate security and surveillance ervicies, the gastronomic and in the Argentine Rural Society (MRS).
Days ago, the National Securities Commission (CNV) launched the common labor cease and trust funds of labor cessation, which will be the financial vehicles in which the funds of the contributing employees will be invested.
It should be remembered that The dismissal scheme works only in the construction sector, Since the works have a certain execution period, and companies could not compensate all personnel once a project has been completed.
But to replicate the experience in other activities High rotation of personnel is required. They could be activities associated with vacations, of people who do a type of work in a period of the year. Or activities where there is income and exit of schools where it is not relevant to the company for training.
In the case of industrial activities in which qualified and specialized labor are required, Companies prefer to retain trained workers.
The Base Law establishes that labor cease funds could only be included by agreement of the employers and unions to through collective agreements.
The Superintendency of Insurance published in the Official Gazette resolution 347, issued on Tuesday, July 8, which enters into force since 10.
The measure says that “the development of this type of coverage constitutes a strategic tool to promote employment formalization, Provide more financial predictability against possible work decouples and strengthen the insurance market as an internal savings channel and dynamic economic development. ”
Support of insurance companies
Irene Capusselli, president of the Civil Association of Life and Retreat Insurance Association of the Argentine Republic (AVIRA) argued that “Labor cessation insurance constitutes a new mechanism, voluntary adhesion that replaces the current compensation for seniority at the end of the contractual relationship relationship FAcilitating its resolution in a simple and clear way for the parties, by making the funds to make the payment ”.
“It also seeks to encourage Formalization of employment and modernize labor relations With an alternative regime, accepted in collective conventions and voluntary adhesion ”- Capusselli explained
How Labor Cessation Insurance will work
Avira explains quand the employer, through periodic contributions that will allocate to special accounts on behalf of each participating employee, It will constitute a balance that will be used as compensation in case of dismissal.
Also The employee can voluntarily save on an individual account of which you will have free availability.
There will be one enabled investment portfolio so that the insurer puts those funds in order to increase their performance. The background is unattachable. MYou are that the Cindividual will be free access for the employeeOr, what is deposited in the special account can only be withdrawn in the event of the decoupling by one of the causes explained in the policy and in accordance with the CCT and in the corresponding percentage.
Labor cessation fund insurance keys
- Life and retirement insurance companies have extensive experience in collective coverage contracted by employers, with clear and efficient information regimes and the regulation of the SSN.
- This type of coverage has the possibility of allowing the employee to generate a savings fund with their individual contributions.
- Funds saved in this type of instrument can have a minimum guaranteed profitability
- The cessation fund insurance may include risk coverage, such as life.
Source: Ambito
