CAN A WORKER CLAIM SEVERANCE PAY AND LATER REQUEST REINSTATEMENT?
No, they cannot. The Bolivian Supreme Court of Justice, through Supreme Ruling No. 176/2022 of April 26, made it clear that these two options are mutually exclusive. In that case, an employee who had been dismissed filed a lawsuit seeking reinstatement, alleging that the termination was arbitrary. However, the Court found that the worker had already accepted a severance settlement, effectively waiving the right to be reinstated.
HOW DOES THE SUPREME COURT INTERPRET ACCEPTANCE OF A SEVERANCE AGREEMENT?
Jurisprudence firmly establishes that accepting a severance agreement—which includes the payment of social benefits—demonstrates a clear and voluntary decision not to return to the job. By choosing to collect severance pay, the worker automatically forfeits the right to reinstatement. Legal precedent emphasizes this exclusivity: once a worker accepts severance, they can no longer seek reinstatement or claim wages for the period following termination.
IMPLICATIONS FOR EMPLOYEES AND EMPLOYERS
For employees, this case law highlights the importance of making an informed decision after being dismissed. Choosing between reinstatement and severance is not merely a matter of preference but one that can significantly impact their legal rights and future employment prospects.
For employers, the clarity of the regulation and its enforcement in the courts provides a reliable framework for handling dismissals properly and avoiding protracted legal disputes.
If after reading this article you believe you need legal advice on the matter, contact one of our labor law specialists. We are here to help you.
Frequently Asked Questions (FAQs)
Can I request reinstatement if I already signed a severance agreement?
No. Accepting and signing a severance agreement waives your right to reinstatement.
What happens if I collect severance but later regret it?
Legally, once you have accepted severance, you cannot reverse the decision or seek reinstatement.
Can I negotiate reinstatement and severance at the same time?
No. Bolivian labor law treats them as mutually exclusive remedies—you must choose one or the other.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
