Efficient human resources management is crucial to the success of any company, especially when it comes to balancing employee costs and business needs. The possibility of terminating employment contracts in order to hire more qualified professionals is one of the strategies that companies may implement to ensure the continuity and growth of their activities, but such a decision implies complying with specific legal requirements.
In an opinion piece for RH Magazine, Carolina Bonina Cariano, Senior Associate in the Labour department at CCA Law Firm, highlights the importance of companies strictly following the law when concluding agreements to revoke employment contracts with their employees. Carolina Bonina Cariano warns that failure to comply with legal requirements can have significant consequences for both the company and the employees.
‘If the company does not meet these requirements, the employee will not lose their right to unemployment benefit, but the company will be required to reimburse Social Security the amount corresponding to the unemployment benefit received by the employee,’ the lawyer emphasises.