/ Comptroller’s Office Approves Regulations for the Karin Law

The Karin Law and its accompanying regulations will require companies to review and update their internal regulations and procedures for handling complaints and investigations related to sexual harassment, labor harassment, and workplace violence within the organizations. 

Francisco Espinoza 
Director of the Labor Practice Area

On January 15, 2024, Law No. 21,643 was published, amending the Labor Code and other legal frameworks concerning the prevention, investigation, and punishment of labor harassment, sexual harassment or violence in the workplace. The amendments introduced by this law will come into effect on August 1, 2024.

The Ministry of Labor and Social Welfare has issued the Regulation (S.D. No. 21/2014-Labor), which sets forth the mandatory guidelines for all investigations for sexual harassment, labor harassment, and workplace violence perpetrated by third parties outside the employment relationship.

On July 3, 2024, the Comptroller General of the Republic acknowledged the Regulation. The key points for companies include:

• Establishing the Principles of the Procedure for the Investigation of sexual harassment, labor harassment, and workplace violence.
• Defining key terms such as:
  • Occupational risk
  • Occupational psychosocial risk factors
  • Labor Harassment
  • Sexual harassment
  • Workplace violence perpetrated by third parties outside the employment relationship
  • Safeguard measures
  • Corrective measures
• Identifying Manifestations of Labor and Sexual Harassment, including:
  • Horizontal harassment
  • Vertical downward harassment
  • Vertical upward harassment
  • Mixed or complex harassment
• Outlining the Rights and Obligations of participants in the procedure, including:
  • General rights and obligations of workers
  • General obligations of the employer
  • General obligations of the investigator
  • General rights of trade union organizations
  • General obligations of administrative agencies under Law No. 16,744.
• Settling General Guidelines for the investigation process, covering:
  • Filing complaints
  • Implementing safeguard measures
  • Appointing the investigator
  • Minimum procedures
  • Contents of the investigation report
  • Time limit for the investigation
  • Referring the investigation report to the labor department
  • Adoption of measures or penalties by the employer
  • Investigation by the labor department
• Providing guidelines for Corrective Measures, Sanctions, and their Challenges.

The most novel aspect of this regulation pertains to guidelines for the investigation of Workplace Violence. It specifies that if the conduct originates from third parties outside the employment relationship, such as customers, suppliers, or users, the affected worker may file a complaint with their employer or the Labor Directorate, which must then conduct the investigation according to the established guidelines.

• Addressing the Subcontracting Regime. 
  The regulation mandates that if the main employer or user receives a complaint from a dependent worker of another employer, they must inform the Measures of Protection if those involved in the incident are from the same company, either under subcontracting or temporary services. When the reported incidents involve workers from different companies, whether they are the main or user company, the contractor, the subcontractor, or temporary services, as appropriate, the complaint can be made to the relevant principal or user company, to the employer, or the Labor Directorate. The principal or user company will always be responsible for conducting the investigation as per the Regulations. Employers of the workers involved must take appropriate protective measures and apply the corresponding sanctions.
• Regulating the Judicial Process for Violations of Fundamental Rights.
• Establishing the format for the Information Report.

In addition to these amendments, the Superintendence of Social Security, by means of a general applicability regulation, has issued general guidelines for entities administering Law No. 16,744. These guidelines require that, in providing technical assistance to employers, they prepare the Protocol for the Prevention of Sexual Harassment, Labor Harassment, and Workplace Violence to be distributed to employees.