The last paragraph of Article 17 of Law No. 5953 gives staff two separate protections where a publication closes: two months' wages and priority for compensation.
Two Months' Wages
The article provides: staff at a periodical whose publication is suspended for any reason whatsoever receive their wages for two months from the date of suspension.
Compensation Is Paid in Preference
The same paragraph adds: the statutory compensation of the staff is also paid in preference.
"In preference" means that in a liquidation or bankruptcy these claims are treated as priority claims. When creditors of a closed publication line up, the journalist's statutory compensation is brought forward.
| Item | Scope | Nature |
|---|---|---|
| Wages | Staff of the periodical | Two months from the date of suspension |
| Statutory compensation | Staff of the periodical | Paid in preference |
What Does "Statutory Compensation" Cover?
The article does not enumerate the items. The compensation arising under this Law includes, in particular:
- Severance pay (Art. 6)
- Wage compensation corresponding to the notice period (Arts. 5, 6)
- Pay for unused annual leave (Art. 6, Art. 21)
- The annual bonus (Art. 14)
How each item is treated in a specific liquidation is a question for your lawyer; this article is not legal advice.
Relationship with Job Security
Closure of the publication is regulated separately from the job security regime. Where the newsroom is downsized without the publication closing, Article 29 of Law 4857 on collective redundancies applies by analogy under the last paragraph of Article 6 of Law 5953. This is covered in the job security article.
The Sanction for Non-Payment
Article 27(d) provides an administrative fine for each journalist against an employer who does not pay the wage or compensation under Article 17.
Bottom Line
Staff at a periodical whose publication is suspended for any reason whatsoever receive their wages for two months from the date of suspension, and their statutory compensation is paid in preference. Non-payment triggers an administrative fine under Article 27(d) for each journalist.