Castellán

The Internal Regulations aim precisely to establish in writing and in advance, those general guidelines for the relationships between the company and its personnel, without prejudice of course, to compliance with legal norms, regulations, collective agreements and decrees in force in labor matters.

Through an internal regulation, companies issue a "compilation of internal operating rules" with their own administration guidelines, with those elements that are sometimes not regulated by law, and/or need a practical definition.

In our country, it is not mandatory to have an Internal Regulations, unlike comparative law. However, experience shows that the existence of a formal and organized labor relations system is becoming increasingly necessary, making the use of Internal Regulations unavoidable (including all those provisions that will govern in a general and obligatory manner).

In this sense, it is advisable for companies that have not yet implemented an Internal Regulations, or have it and yet it is outdated or "not suitable" for current times, to seek the corresponding advice in order to implement it and benefit from the advantages analyzed in this article.

Indeed, this tool is very useful when it comes to preventing and resolving conflicts. The regulations can cover those aspects that, because they are not provided for in our labor legislation, have been left to the discretion of the parties and need a practical definition. For example, aspects related to personnel management, coexistence rules, and use of company assets. Likewise, the obligations and prohibitions of workers in general will be specified, disciplinary sanction regime, and a chapter regarding the company's obligations to the personnel in general, without prejudice to those agreed with each individual worker (advance policy - if any).

Can it be unilaterally created by the company, or must it necessarily be agreed with the workers?

The Internal Regulations can be the result of collective bargaining, acquiring the same legal nature as a bipartite collective agreement; or, on the contrary, it can emanate unilaterally from the company. This is possible as a manifestation of the "power of direction" and "disciplinary authority".

Indeed, the employer's faculties to give instructions to workers that must be followed, to order how the activity is carried out, to control the execution of those guidelines and to establish the terms in which the link will develop in general; as well as by virtue of the power to sanction, the company can on its own draw up the Internal Regulations and establish there its policies, organizational values and conduct guidelines.

The Internal Regulations must then be professionally drafted by the company's advisors, and subsequently brought to the attention of the workers.

Does the regulations have absolute value?

Whether it arises as a result of negotiation or is unilaterally created by the company, the Internal Regulations will not have an absolute and unquestionable value. Indeed, whenever there are doubts about its legality or any of its provisions contradict labor law, it may be "reviewed" judicially (even in cases where it has the "approval" of the trade union organization).

However, practice shows that beyond that, its mere existence is fundamental for the prevention of a multitude of problems.

What should its content be?

The Regulations must be organized and include different chapters in order to cover all the mentioned aspects by grouping them by theme.

Firstly, it is necessary to determine the scope of application or personnel covered. For example, if it includes all persons participating in the operation of the company, at any stage of the production process and/or services, by performing a paid task under direct dependency (permanent and temporary employees, substitutes, seasonal workers, on trial, operational and administrative staff). In this same aspect, it is also advisable to establish everything related to the administration of HR of the company: admission, trial periods, work regime and place (in-person, telework or "hybrid"), required documentation (health card, driver's license, etc. according to the sector in which the company operates), obligation to establish and keep updated address, etc.

Secondly, the obligations and prohibitions of the workers must be clearly specified, which will serve as a reference and framework of conduct for the employees. Of course, these provisions must be drafted "tailor-made" according to the needs of each organization and taking into account the greater or lesser level of flexibility that may exist depending on the activity carried out. For example, if it is appropriate to establish the mandatory use of uniforms, personal protective equipment (safety), aspects related to the schedule, clocking in/out, handling of sensitive data and confidentiality, regulation of telework, prohibition of cell phone use, music players, consumption of food and beverages during working hours, rules on the use of company vehicles, tools or housing, impossibility of working overtime without prior authorization from the company, obligation to report absences, submission of medical certificates and everything related to hygiene standards.

Another "chapter", surely the most important due to the difficulties it presents in daily practice, is the one that contains sanctions. One alternative is for the disciplinary regime to be determined in advance in the same regulations, specifying exactly the gradation of offenses, so that for example "for the first unnotified and unjustified absence, a written warning is issued, for the second a one-day suspension" and so on. In these cases, an additional consideration period for these behaviors could be established, for example one year, after which the "records" are cleared and start counting from zero again. A second option, - the one we recommend -, is to determine or indicate the severity range of offenses, classifying them as minor or serious, and list examples for illustrative purposes, reserving the right to classify others not contemplated (stating that the list is not exhaustive).

We find it essential that the company is not hostage to the text, even being forced at times to impose harsher sanctions than desired, due to its own "rigidity". It is advisable then to establish that the scale of sanctions is in progressive, cumulative order and according to the severity of the specific offense (from verbal warning, written warning, suspension, to dismissal for gross misconduct). It is not advisable to foresee that after a certain period the record will be "cleared" of sanctions. In practice, this only encourages bad habits and becomes unfair to good workers who, after several years of work, do not even have a single sanction.

Finally, the Regulations must contain a chapter regarding the company's obligations to the personnel in general and without prejudice to those agreed with each worker in their employment contract. To mention some examples, the days and payment methods of salaries, obligation of respect and good treatment, providing the necessary elements for the activity (tools necessary for work, protective equipment), delivery of uniforms, determination of rest spaces, compliance with the right to "disconnection", respect for workers' rights, enjoyment of statutory leave, and aspects related to the organization's commitment to preventing harassment behaviors, as well as any other offensive behavior to dignity and integrity in the workplace, protection mechanisms and internal procedures for their resolution, and in the promotion of gender equality and respect for non-discrimination principles, etc.

With regard to the latter, being a topic that is becoming increasingly important in Uruguay, it is essential to remember that we suggest the early adoption of preventive measures, such as the implementation of an Action Protocol that makes it clear that all manifestations of discrimination, violence, workplace harassment or sexual harassment are prohibited, repudiated and will be severely punished, and that such behaviors are subject to disciplinary sanctions (even leading to dismissal for gross misconduct by the responsible party).

Final considerations

In light of the above, the importance of the Internal Regulations as a fundamental tool is highlighted, so that the worker clearly knows the basic issues related to the order and discipline required in the company, in order to avoid possible misunderstandings.

For a good administration of Human Capital in any company, regardless of its size and number of personnel, it is essential that this set of rules be professionally drafted and respecting labor provisions, so that it constitutes the basic internal operating policy serving as a framework for the resolution of a wide range of situations that arise.

Montevideo, August 2, 2022