6. Cost-Reduction Strategies

To what extent can employers implement the following cost-reduction strategies as a result of COVID-19, and what are the primary limitations on each? 

• Furloughs.

By agreement with employees.

• Salary reductions.

By agreement with employees.

• Redundancy.

Permitted except as it regards employees covered by the special unemployment insurance status, when the labour contract is suspended.

• Facility closure.

Permitted. It is important to point out that when the closure has not been imposed by the authorities, the employer shall continue paying salaries.