On November 18, 2021, Law No. 21.389 was published in the Official Gazette, which creates the National Registry of Alimony Debtors and modifies several legal bodies to improve the system for the payment of alimony. In relation to labor effects, this law establishes the following:
1. Companies may be obliged to withhold and pay alimony in respect of natural persons who render services to them on a fee basis.
2. Deductions for alimony must be made after the mandatory deductions for taxes and social security contributions.
3. In the event that the withholding of alimony with respect to the substitutive indemnity for prior notice and/or indemnity for years of service is appropriate, the respective ministers of faith, prior to the ratification of the settlement, shall demand from the employer the accreditation of having made the discount, the withholding and the payment of said amounts in the account ordered by the court.
4. The foregoing shall also apply to the official of the Labor Inspectorate who authorizes a record of the conciliation meeting regarding the termination of the labor relationship and in which the payment of the aforementioned indemnities is recorded.
5. In order to comply with the above, the Labor Inspectorate official or the attesting officer, as the case may be, must verify whether the employer is subject to the obligation of judicial withholding of the alimony, requesting the last 3 pay statements of the employee and the corresponding deduction for judicial withholding.
6. The employer, for its part, shall be obliged to declare in writing its duty to withhold judicial withholding of alimony.
7. Failure to comply with the aforementioned will make whoever corresponds, jointly and severally liable for the payment of the alimony not deducted, withheld and paid.
8. In the event of a labor lawsuit, the court that establishes the total amount that the employer must pay to the worker, shall also order the employer to deduct, withhold, pay and accompany the proof of payment of the substitute indemnities and indemnities for years of service from which the corresponding alimony was deducted. For this purpose, the employer shall be obliged to inform the court of its duty to withhold the alimony.
9. If the employer fails to comply with the obligations described above, he/she may be fined twice the amount ordered to be withheld.
10. The employer shall be jointly and severally liable for the payment of the pensions not deducted, withheld and paid in favor of the maintenance.
11. Finally, it is established that, with respect to managers and directors of publicly traded corporations that have a current registration in the Registry of Alimony Debtors as a debtor, the respective company must withhold from the salary of the director or general manager, the equivalent of 50% of his salary or the total amount of alimony owed if this is less and must pay it directly to the beneficiary.
Should you require additional information on this matter, please contact: Alfred Sherman (email@example.com) and/or Felipe Ovalle (firstname.lastname@example.org).