FERRERE assisted Fondo de Solidaridad in its defense from a legal claim for salary differences and their impact on other items, and pain and suffering due to labor harassment, brought by its former general manager for nearly USD 590,000, which was rejected by the trial court and on appeal.

Fondo de Solidaridad is a nongovernmental public entity that manages a system of scholarships for students of Universidad de la República (UDELAR), Uruguay’s most important higher education center, of Universidad Tecnológica del Uruguay (UTEC), and of Consejo de Educación Técnico Profesional (UTU). The fund receives mandatory contributions from graduates of degree programs at the three centers and administers them to finance a system of scholarships for students with economic needs who require additional support to complete their studies.

The entity was questioned publicly from 2015 to 2017 regarding the excessively high salary paid to its general manager. In that context an agreement was reached with the fund’s general manager at the time for a 30% cut in his salary of UYU 379,000, with the condition that his employment with the fund be guaranteed until his retirement.

In April 2022, after fulfilling the agreement, the former manager brought the claim, which was ultimately ruled totally inadmissible by the Labor Appeals Court in September 2023. The victory in the case has three relevant components: it avoided a major loss of funds for the scholarship system; it showed that the agreement and its performance were fulfilled pursuant to law; and it reinforced the fund’s credibility with the rest of its employees, by proving that there was no labor harassment, and that Fondo de Solidaridad had fully honored the terms agreed to with its former general manager.

Fondo de Solidaridad’s defense was handled by FERRERE partner Alberto Baroffio and by the attorney Jazmín Schmittner.