i. The notice periods for dismissals for fair reasons are as follows:
- Dismissal due to lack of capability: notice of 30 calendar days.
- Reasons related to major faults or misconduct: notice of six calendar days.
In both cases, it is necessary to follow the dismissal procedure provided for employees in general.
ii. Dismissal due to withdrawal of trust (dismissal without fair reason): no notice.
The following is the legal dismissal procedure provided for employees in general that is applicable for managers:
According to the Constitution, the law offers an employee protection against unfair dismissal, as long as the employee has exceeded the probationary period. These employees may not be dismissed without fair reasons, as expressly provided for by law. If the reason for dismissal is not one of a number of ‘fair reasons’ included in the law, the employee has the right to bring a claim against the employer to receive compensation due to unfair dismissal.
The following are considered fair reasons, as provided for by law, that allow employers to dismiss employees:
iii. Reasons related to capability:
- The employee loses his physical or mental faculties or becomes suddenly incompetent in a manner detrimental to job performance; the employee performs poorly compared to the average performance of other personnel and the employee; or the unjustified refusal of the employee to undergo a medical examination related to the performance of duties.
- Court conviction for an intentional crime.
iv. Reasons related to major faults or misconduct that are specifically provided for in the law:
- Failure to comply with duties.
- Decline in performance.
- Misappropriation or attempted misappropriation of the goods or services of the employer.
- Disclosure of confidential information or provision of false information that may be detrimental to the employer.
- Unfair competition.
- Attendance at the workplace under the influence of alcohol or drugs.
- Committing violence, severe indiscipline, or intentional damage to the employer’s goods.
- Unjustified absences of more than three consecutive days or five non-consecutive days and repeated delays.
Nevertheless, according to Peruvian law, the first three months of services constitute the employee’s probationary period. During this time, the employee is not legally protected against dismissal and therefore may be dismissed by the employer without invoking any reason or complying with any formality.
The law authorises the parties to establish a probationary period of more than three months for managers or directors, whose probationary period can reach up to a maximum of one year.