Declaration of unconstitutionality of the Legislative Decree 650
The Court of Constitutional Guarantees declared legislative decree 650 partially unconstitutional, specifically with respect to labor indemnities, establishing that the advance payment of indemnities does not have a cancellation effect.
The Tribunal of Constitutional Guarantees declared partially unconstitutional the government's legislative decree 650. The declaration focused specifically on the part that affected the severance payments of workers of private and public companies. The Court determined that the advance of the severance payment did not have a cancellation effect, contrary to what was established in the governmental decree. This decision represented a setback for the labor policies implemented by Alberto Fujimori's government.