Imposition of fines for non-compliance with labor obligations by the employer

Abstract

Labor relations between employer and employee generate rights and obligations for both parties, governed by a contractual regime that establishes the fundamental principles of the legal relationship. Labor law, by its protective nature, guarantees minimum rights that arise mandatorily in any employment relationship, without preventing them from being improved through agreements between the parties. Labor legislation, being of public order, ensures the effective realization of these rights in order to protect the employee, who is considered the most vulnerable party. Non-compliance with labor obligations by the employer constitutes an infringement that must be administratively sanctioned in order to preserve the objectives of labor regulations. This article focuses on the legal consequences arising from the employer’s breach of obligations, without excluding other possible sanctions. Article 627 of the Labor Code regulates an administrative sanctioning procedure to ensure compliance with labor obligations, considering that the employee is generally the aggrieved party. This procedure was reformed to increase the effectiveness of sanctions by raising fines that, in the past, did not dissuade employers from failing to fulfill their responsibilities, and by adjusting them according to the offender’s economic capacity and the size of the company. The study will analyze the obligations of employers, the procedures for reporting non-compliance, and the application of sanctions, assessing the effectiveness of these measures and their impact on the protection of labor rights.