Guatemala

Guatemala

Capital: Guatemala City
Currency: - GTQ
GTQ

Guatemala Labor Law and Employment Policy Overview

Employment Law Overview

  • Key Laws and Regulations:
    • Labor Code
    • Social Security Law
    • Occupational Safety and Health Law
  • Legal Characteristics:
    • Designed to protect employees' rights and benefits
    • Stipulates minimum wage, working hours, vacation time, and severance pay, among other provisions

Employment Contract Requirements

  • Contract Types:
    • Indefinite contracts
    • Fixed-term contracts
    • Specific project contracts
  • Contract Provisions:
    • Must include job description, compensation, working hours, termination conditions, etc.
  • Language and Currency:
    • Contracts must be written in Spanish
    • Currency is the Guatemalan Quetzal (GTQ)

Working Hours Regulations

  • Standard Working Hours:
    • 44 hours per week, 8 hours per day
  • Rest Days and Breaks:
    • One rest day per week
    • 30-minute break per day

Vacation Policy

  • Annual Leave:
    • 15 days of paid annual leave per year
    • Accrued after one year of service and 150 days worked
  • Public Holidays:
    • 12 national public holidays
  • Special Leave:
    • Sick leave: Up to 26 weeks per year, paid at 66% of regular salary
    • Maternity leave: 12 weeks of paid leave, 30 days before and 54 days after childbirth
    • Paternity leave: No legal provisions

Employee Severance and Contract Termination

  • Notice Period:
    • One week to one month, depending on years of service
  • Severance Pay:
    • Two to four months of severance pay if an employee is terminated without just cause
  • Unfair Dismissal Protection:
    • Employers cannot dismiss union members, pregnant or nursing women, or employees participating in collective disputes or illegal business closures

Tax Laws

  • Personal Income Tax:

    • Salary Range (GTQ)Tax Rate
      0 - 300,0005%
      300,000 and above7%
  • Social Security Contributions:

    • Employer: 12.67%
    • Employee: 4.83%

Health Insurance

  • Insurance Policies:
    • Employers may choose to offer private health insurance as part of a benefits package
  • Coverage:
    • Coverage varies depending on the insurance plan

Compensation and Benefits

  • Minimum Wage:
    • Non-agricultural activities: 3,416.38 GTQ/month
  • Compensation Structure:
    • Salary, bonuses, allowances, etc.

Work Permits and Visas

  • Permit Requirements:
    • Foreigners require a work permit to work in Guatemala
  • Application Process:
    • Apply through the Guatemalan Immigration Department

Confidentiality and Non-Compete Clauses

  • Enforceability:
    • Confidentiality and non-compete clauses are enforceable in Guatemala
  • Common Provisions:
    • Restrict employees from disclosing confidential information or working for competitors after leaving employment

Training and Development

  • Legal Requirements:
    • Employers must provide safety training and skills development training to employees
  • Government Support:
    • Government provides funding and incentives to support employee training

Workplace Diversity and Inclusion

  • Legal Requirements:
    • Prohibits discrimination based on race, gender, religion, or other protected characteristics
  • Enforcement Measures:
    • Employers must establish policies and procedures to prevent discrimination

Remote Work Policy

  • Legal Framework:
    • No specific legal framework for remote work in Guatemala
  • Tax and Insurance Implications:
    • Remote work may impact tax and social security obligations

Authoritative Website Addresses

1.Guatemala Labor Law and Employment Policy Overview
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Vacation Policy
1.5Employee Severance and Contract Termination
1.6Tax Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policy
1.14Authoritative Website Addresses