All contracts, covenants, or agreements in which workers or employees agree directly or indirectly to pay fees to their attorneys in judicial or extrajudicial cases of claims against their employers under the labor legislation of Puerto Rico, or under labor legislation of the United States Congress applicable to Puerto Rico or under an individual or collective work contract, shall be void and contrary to the public peace. Contracts, covenants, or agreements, however, in which a labor organization binds itself to pay attorney’s fees for services rendered to the same, provided payment of such fees is not contracted for, covenanted or agreed upon on the basis of a percentage of any right, benefit, or increase of wages acquired through collective bargaining, shall be valid.
History —May 12, 1950, No. 402, p. 954, § 3; June 3, 1980, No. 90, p. 246.