Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

Unemployment Provision Convention, 1934 (No. 44) - Peru (Ratification: 1962)

In reply to the Committee's previous comments, the Government refers once again to the compensation received by workers in the event of unwarranted dismissal (Legislative Decree No. 728, approved by Presidential Decree No. 003-97-TR). The Government recalls that Article 1 of the Convention permits a choice between the payment of a benefit, an allowance or a combination of benefit and an allowance, and it has opted for a benefit. Furthermore, this Article defines a benefit as a payment related to contributions paid in respect of the beneficiary's employment whether under a compulsory or a voluntary scheme. The Government adds that, since the law in Peru envisages the payment of a benefit for unwarranted dismissal, it is therefore compulsory. Consequently, the Government considers that the indemnity provided for unwarranted dismissal gives effect to the Convention. Furthermore, it refers once again to the compensation provided related to the length of service (Presidential Decree No. 001-97-TR) which constitutes an additional measure for the financial protection of workers whose employment relationship is ended involuntarily.

The Committee notes this information. It is bound to remind the Government that the benefit for unwarranted dismissal cannot constitute a system of protection against unemployment in accordance with the requirements set out by this Convention. States which have ratified the Convention have to guarantee a benefit to any worker who is involuntarily unemployed, and not only to those who have been subject to unwarranted dismissal. Moreover, the compensation related to length of service provided to certain workers at the end of their employment relationship, irrespective of the reason for which the relationship is terminated, cannot be assimilated to an unemployment benefit system, in accordance with the provisions of the Convention.

The Committee places particular emphasis on the need to establish a system of protection against unemployment, in accordance with the provisions of the Convention, in view of the comments received from the World Confederation of Trade Unions (WCTU) reporting the policy of massive reduction of personnel by the company "Telefónica del Péru S.A." following the sale of its shares by the Government.

The Committee trusts that the Government will re-examine this question in the light of the above comments and requests it to indicate in its next report the measures which have been taken or are envisaged to give effect to this Convention, which was ratified by the Government of Peru over 35 years ago.

[The Government is asked to report in detail in 2000.]