Article 1 reiterates that the Executive may adopt urgent, strong, exceptional and necessary meassures in order to guarantee rights, maintain public order and guarantee access to goods and services. Such extension entered into force on July 10.These decrees and extensions regarding economic emergency are questionable on Constitutional grounds.
Our lawyers, Oswaldo Páez Pumar, Carlos Eduardo Acedo, Alfonso Graterol, Luisa Acedo de Lepervanche, María Genoveva Páez Pumar, Luisa Lepervanche, Diego Lepervanche and Dailyng Ayesterán shall address several issues related to insurance activities.
In addition to postponing the monetary conversion, Article 4 changes an important element: While Decree 3.332, which initially ordered the conversion, established under its First Transitory Provision, that current bolivars would be demonetized on June 4, Article 2 of Decree Nº 3.445 subjects demonetization to an eventual decision of the Central Bank of Venezuela. In other words, pursuant to this new decree, the two monetary units may co-exist.
The decree grants the government the power to take "urgent, forceful, exceptional and necessary" measures, which may even limit certain constitutional rights. The decree shall be in force for 60 days, which may be extended for 60 additional days, although the emergency has been in place for more than two years. Although the Constitution requires approval by the National Assembly, the decree only refers to review by the Supreme Tribunal of Justice.
Regulation Nº 18-03-01 reflects rules regarding the conversion process scheduled to take place on June 4, 2018. However, it also contains obligations in force since May 1.
Presidential Decree Nº 3.392 provides that the new minimum wage shall be the amount of Bs. 1,000,000 (Bs. S. or sovereign bolivars 1,000). Despite it being published in April 30, the decree indicates that it entered into force on April 15.
Additionally, SENIAT --the tax authority-- adjusted the tax unit or unidad tributaria, from Bs. 350 (Bs. S. 0.35) to Bs. 850 (Bs. S. 0.85). This affects the labour obligation of providing a food bonus, which is based on such tax units. Therefore, the food bonus would now be equivalent to Bs. 1,555,500 (Bs. S. 1,555.5).
The book shall be presented on April 26, 2017, at the Palacio de las Academias. This new publication was the work presented by Carlos Eduardo Acedo for his incorporation as member of the Academia de Ciencias Políticas y Sociales. The book is available for purchase at Tecniciencias.
According to Chambers "these Awards reflect outstanding contributions to furthering the advancement of women in the law through gender diversity, inclusion, promotion programs, and mentoring. We are highlighting law firms and attorneys from private practice who are dedicated to advancing women’s progression within the legal sphere."
For more information you may review the following link: https://www.chambersandpartners.com/chambers-women-in-law-awards-latin-america-2018.
The programme for the event is the following:
Introduction about Mendoza, Palacios, Acedo, Borjas, Páez Pumar & Cía., by Oswaldo Páez Pumar.
Exchange controls, Exchange Agreement Nº 39 and its implications for the insurance activity, by Diego Lepervanche.
Judicial proceedings and prior extra-judicial proceedings regarding insurance companies, by Alfonso Graterol.
Certain problems relative to insurance contracts, by Carlos Eduardo Acedo.
Fiscal issues, including the elimination of inflation adjustment for insurance companies, by María Genoveva Páez Pumar.
Corporations equity loss, including insurance companies, by Luisa Acedo de Lepervanche.
Labor law issues, including insurance brokers being considered workers, by Dailyng Ayestarán.USA and EU sanctions against Venezuela, its implications for the insurance sector and interaction of sanctions with Petros, by Luisa Lepervanche.
By means of Decision Nº 276, dated March 7, 2018, the Political-Administrative Chamber of the Supreme Tribunal of Justice ruled in favor of the nullity claim submitted by VECOVICA Venezolana Constructora de Viviendas, C.A., represented by our law firm, against the administrative decision issued by the former Instituto para la Defensa de las Personas en el Acceso a los Bienes y Servicios (INDEPABIS), now Superintendencia Nacional para la Defensa de los Derechos Socioeconómicos (SUNDDE). Such administrative decision ordered VECOVICA to pay 4,000 Fiscal Units for alleged violations of several provisions of the Law on the Defense of Access to Goods and Services by Persons, related to the use of inflation indexes to establish prices, a failure to comply with contractual conditions, the delay in delivery of housing units, supposedly fraudulent commercial activity, and lack of information, among other issues. However, the Supreme Tribunal of Justice considered valid the arguments presented by our team and ruled in our favor.
Presidential Decree Nº 3.301 increases minimum wage to Bs. 392.646,46.
Additionally, Resolution Nº SNAT/2018/0014 adjusts the value of Fiscal Units, incrementing its value in Bs. 200, to place it in Bs. 500. This has implications from the labour perspective too since the basis for calculating the food bonuses are Fiscal Units. Therefore, the obligation to pay food bonus is now equivalent to Bs. 915.000.
Arminio Borjas, partner of our law firm; and father of our partner, Arminio F. Borjas; died in Caracas, on February 20, 2018, at the age of 91.
We celebrate his career, described below:
Joined Mendoza, Palacios, Acedo, Borjas, Páez Pumar & Cía. in 1951. Partner since 1964.
From 1951 to 1974, Professor of Civil Procedure Law I and II, Universidad Central de Venezuela.
From 1961 to 1964, Chairman of the Professors Association, Universidad Central de Venezuela.
From 1977 to 1979, Professor of post-graduate courses, Universidad Central de Venezuela.
From 1979 to 1973, head of the Civil Procedure Department, Universidad Central de Venezuela.
Member of the Procedural Law Iberoamerican Institute.
From 1973 to 1975 and from 1977 to 1979 Co-Judge of the Supreme Court of Justice.
Former Vice President of the Supreme Electoral Council and Director of the Central Bank of Venezuela.
Former President of Banco Nacional de Descuento, and former Director of Banco de Venezuela, Seguros Orinoco, C.A. and Industrias Venoco, C.A.
Former President of the Superior Council of Universidad Metropolitana.
Former President of the Comisión Taurina and Liga Mayor de Fútbol.
At Mendoza, Palacios, Acedo, Borjas, Páez Pumar & Cía., we deeply regret this loss.
Our team of experts, that has been analyzing this exchange controls regime for 15 years and has published several articles on the subject, has studied the implications of the new regulations.
Our experts on the subject include authors on books and articles on foreign investment. We have analyzed the “Constitutional Law” on Productive Foreign Investment, concluding that -if applied despite its nullity- it would have important implications for registered foreign investors, including important penalties in foreign currency, as well as payments of taxes in foreign currency, in certain cases.
Our team, particularly those with expertise in labor law, has analyzed the impact of these changes, which include eliminating payment of the food bonus in cash. Indeed, pursuant to the new decree, the bonus should be paid in “coupons, tickets or electronic cards”
Recently, the Social Chamber of the Supreme Tribunal of Justice issued favorable decisions regarding cassation submissions presented by Inversiones Velicomen, C.A., the company which operates an important hotel in Caracas, Hotel Paseo Las Mercedes, against decisions issued by labor appeal courts in Caracas, regarding claims initiated by more than 25 workers. Such workers had taken by force the facilities of the hotel during 2011 and 2012, and additionally claimed labor benefits for such years. Their claim had been granted by the courts, but Supreme Tribunal favored the defenses presented by our team and reversed the previous decisions.
On November 21, 2017, the Constitutional Assembly (Asamblea Nacional Constituyente) enacted the "Constitutional Law" on Agreed Prices, which was published in the Official Gazette on November 22, 2017. Our team has studied issues of its nullity as well as the scope of application and interpretation of the rules for some of our international and national clients.
Menpa's labor team is available to discuss with our clients the impact of such increase and its incidence on associated costs. Please contact our attorneys, Alfonso Graterol, Esteban Palacios, María del Carmen López and Dailyng Ayestarán for individual attention.
On March 30, 2017, the Ninth Superior Court in Civil, Commercial, Transit and Banking of the Judicial Circumscription of the Caracas Metropolitan Area desestimated the claim for damages made by Consorcio Eripe Lamilara against our client Asea Brown Boveri, S.A. Our partner, Rosemary Thomas and our junior partner María del Carmen López defended ABB, with regard to a works contract for the expansion of substations of CVG Edelca.