#Nicaragua 🇳🇮 #BDS_LaborAlert: Minimum Wage Increased in Companies Subject to Free Zone Regime
Industries operating under the special Free Trade Zone regime in the national territory must...
With the enactment of the Labor Procedural Reform seven years ago, the labor law sector underwent a series of changes aimed at strengthening access to justice and the right to defense for workers.
This reform led to the establishment of a department within the Public Defender's Office composed of social assistance attorneys specialized in labor law. This department provides legal counsel and representation to workers whose last income does not exceed twice the base salary of an administrative assistant, as established in Article 6 of Act No. 9289, the Ordinary and Extraordinary Budget Law of the Republic for the Fiscal Year 2015.
These individuals are entitled to free legal aid, funded by the Government, to protect their rights in individual legal disputes. The formalization and strengthening of free legal aid in labor matters, along with the creation of special procedures for legal protection through expedited summary processes for handling protective measures or allegations of workplace discrimination, have led to an increase in both the number and frequency of labor lawsuits.
But how does an employer find out that they are being sued?
Typically, an employer becomes aware of a lawsuit through a judicial notification, which informs them of the resolution concerning the formal filing of a lawsuit against them. This notification is usually handled by the Judicial Notifications Office or by an authorized notary public, upon request from either party.
It is crucial to understand that once the lawsuit is notified, the clock starts ticking for the employer to respond to the complaint. Therefore, it is essential to have clear procedures in place for receiving notifications and promptly forwarding the notified document to the legal department for proper analysis. Keep in mind that every judicial notification must be reviewed by an attorney specializing in labor law, who understands the legal implications and obligations it entails, ensuring that the response and any necessary appeals are filed within the legal timeframes.
Failure to maintain clarity in the notification processes poses significant risks for the employer. If an employer is declared in default for not responding in a timely and appropriate manner, they may face the reinstatement of the employee and the payment of the labor claims outlined in the lawsuit, which could have severe financial consequences.
It is imperative to keep the registered address of the legal entity up to date and to establish a written policy for the receipt and handling of judicial notifications. Disorganization in receiving notifications or refusing to accept them will only harm the employer.
Juan Diego Zeledón
Attorney at BDS Asesores
