Legal implications of simulating the termination of an employment contract by agreement of the parties

Abstract

The general objective of the research was to legally analyze the legal implications of simulating the termination of the employment contract by agreement of the parties. The present research used the quantitative method which produces descriptive data, originating from data collection. Supported by the documentary-bibliographic review.  In addition, the inductive-deductive method and the analytical-synthetic method were applied. It is concluded that, from the theoretical foundation, it can be understood that the simulation of individual termination of the contract by agreement of the parties, also called “simulated dismissal, fictitious termination, labor fraud”, is an illegal practice that violates the rights of employees and generates labor precariousness. This practice has become common in recent years and consists of the employer and the employee pretending to terminate the contractual relationship by consensus, when in fact the employee is being dismissed without just cause.