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SUNAFIL Precedent: Principle of reasonableness in administrative sanctions

10 December, 2024

Introduction

The Full Chamber of the Labor Inspection Court (TFL) of SUNAFIL issued Resolution No. 019-2024-SUNAFIL/TFL, which establishes administrative precedents of mandatory observance . This ruling redefines the application of the principle of reasonableness in sanctioning procedures, focusing on avoiding excesses when companies voluntarily correct their infractions before formal charges are filed.

Context of the case

The case involved the company Azúcar El Moshaco S.A.C., which was the subject of a labor inspection by SUNAFIL’s Ucayali Regional Office. During the inspection, an infraction report was issued, proposing a fine for failure to prove the correction of social and labor non-compliances within the term granted in an inspection measure of requirement.

The company filed an appeal for review, arguing that it had voluntarily corrected the irregularities before being notified of the charges. Azúcar El Moshaco S.A.C. pointed out that imposing a sanction under these circumstances was disproportionate and violated the principle of reasonableness.

Decision of the Labor Inspection Tribunal

The TFL determined that sanctioning a company that voluntarily corrected the infractions before the formal accusation contravenes the principle of reasonableness. According to the Court, the objective of the labor inspection is fulfilled when the irregularities are corrected, without the need to impose excessive sanctions. Among the key points of the resolution, the following stand out:

  • Annulment of the fine: The economic sanction was eliminated by recognizing that the company corrected its faults in a timely manner.
  • Compliance with the purpose of the inspection: The Court emphasized that the inspection seeks to promote compliance with the regulations, and not only to punish.
  • Principle of reasonableness: The resolution emphasized that sanctions must be proportional to the circumstances of the case.

Established administrative precedents

The resolution of the Full Chamber of the Labor Inspection Court establishes two fundamental criteria as administrative precedents of mandatory observance. First, it highlights the application of the principle of reasonableness in the imposition of sanctions, stressing that these must be proportional to the seriousness of the infraction and consider the corrective actions taken by the inspected subject. Secondly, the ruling points out the need to avoid excessive administrative punishment, especially when the company demonstrates that it has voluntarily corrected the irregularities before the formal notification of the charges. These precedents seek to guarantee a fair and balanced inspection work, promoting a more reflective approach in sanctioning decisions.

Repercussions of this ruling

This ruling affects both companies and the labor inspection system. By protecting companies that proactively correct their non-compliance, it fosters a culture of voluntary compliance with labor regulations. In addition, this ruling sends a clear message to labor inspectors about the importance of assessing the proportionality of sanctions and prioritizing the promotion of compliance over the imposition of disproportionate fines. Finally, the ruling contributes to strengthening transparency and confidence in the enforcement system, providing a fairer and more predictable framework for relations between companies and labor authorities.

Conclusion

Full Chamber Resolution No. 019-2024-SUNAFIL/TFL reinforces the principle of reasonableness in administrative sanctioning procedures, promoting a fairer and more balanced approach to labor inspection. This ruling not only protects those affected from disproportionate sanctions, but also fosters a culture of voluntary compliance and strengthens confidence in the labor inspection system. SUNAFIL, with this precedent, advances towards a more effective supervision aligned with the principles of proportionality and fairness.

 

Source: https://img.lpderecho.pe/wp-content/uploads/2024/11/Resolucion-de-Sala-Plena-019-2024-Sunafil-TFL-LPDerechp.pdf