Legal Framework of Job Stability and Limits on Dismissal
Current labor regulations recognize the right to continuity and stability in employment, establishing that termination of the employment relationship may only occur for causes expressly provided by law and duly proven.
The Political Constitution of the State enshrines the protection of work as a social function and provides that labor laws must be interpreted under principles of protection, continuity, and stability. Accordingly, ordinary labor legislation establishes specific and exhaustive grounds for dismissal, meaning closed and legally defined causes that allow an employer to terminate an employment relationship without it being considered unjustified.
Ministerial Resolution 431/21 reaffirms that outside these expressly established grounds, any dismissal shall be deemed unlawful. It explicitly clarifies that force majeure and unforeseen events do not constitute legal grounds for termination, thereby rejecting broad interpretations that attempt to justify dismissals based on external, unavoidable, or unpredictable events.
Legal Grounds Preventing Dismissal for Force Majeure
Protective Principle and Favorability
Primacy of Reality
The reality of facts prevails over contractual formalities. If an effective employment relationship exists, the employer may not disguise a dismissal under arguments of restructuring derived from unforeseen events.
Reversal of the Burden of Proof
In case of dispute, the employer must demonstrate the existence of a valid legal cause. If the dismissal is based on force majeure, administrative or judicial authorities will declare it improper, as such ground is not legally recognized.
Reinforced Protection Against Arbitrary Measures
The prevailing interpretation in administrative and judicial practice maintains a highly protective approach, aligned with international labor standards of the International Labour Organization regarding protection against unjustified dismissal and employment stability (ILO, 1982).
Real Effects of Dismissal for Force Majeure on Employers and Employees
In practice, this prohibition applies to several relevant scenarios:
- If a company suffers a fire that temporarily halts its operations, it may not dismiss employees by invoking force majeure.
- If prolonged blockades prevent product commercialization and generate economic losses, the employer is not legally entitled to terminate employees on that basis.
- If essential machinery becomes unusable due to an unpredictable event, production stoppage does not automatically constitute lawful grounds for dismissal.
In such cases, affected employees may request immediate reinstatement and payment of accrued wages from the date of dismissal until effective reinstatement, in addition to initiating proceedings before the competent labor authority.
For employers, this implies the need to plan alternative crisis management mechanisms—such as internal restructuring compatible with labor regulations, mutual agreements, or temporary suspension procedures in accordance with specific legal requirements—avoiding unilateral decisions that could generate greater economic contingencies.
Legal Consequences of Dismissal Based on Force Majeure
A dismissal based exclusively on force majeure or unforeseen events is considered unjustified. Its main legal consequences include:
- Mandatory reinstatement of the employee.
- Payment of accrued wages.
- Possible administrative sanctions.
- Increased risk of labor litigation.
Ministerial Resolution 431/21 has become a guiding criterion for the Ministry of Labor and a central element in resolving labor disputes related to employment stability and unjustified dismissal.
In summary, the current framework consolidates strong protection of job stability by absolutely excluding force majeure and unforeseen events as grounds for dismissal. While this interpretation strengthens employees’ legal certainty, it also poses significant challenges for business sustainability in the face of extraordinary events, reflecting the structural tension between labor protection and economic flexibility within the Bolivian legal system.
If you are facing a dismissal, a job stability dispute, or a business crisis derived from unforeseen events, our law firm can provide strategic and specialized legal advice. Contact us to receive timely legal support and effectively protect your rights.
Frequently Asked Questions (FAQs)
Can an employee be dismissed due to a fire or natural disaster?
No. Even if the event technically qualifies as force majeure, it does not constitute a lawful ground for dismissal under the current administrative criterion.
What can an employee do if dismissed for “economic crisis”?
The employee may request reinstatement and payment of accrued wages before the labor authority, as economic crisis is not an automatic legal ground for dismissal.
Can an employer permanently close the company and dismiss all employees?
A definitive closure must comply with specific legal requirements. Invoking force majeure alone is insufficient; legally recognized procedures and grounds must be observed.
Who must prove the legality of the dismissal?
The employer bears the burden of proving that the dismissal is based on a valid legal cause.
Does the resolution apply to foreign companies operating in the country?
Yes. Any company maintaining employment relationships under Bolivian labor law is subject to this criterion.
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.
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