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 - 300,000	5%
    300,000 and above	7%

• 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

• Guatemalan Ministry of Labor: https://www.mintrabajo.gob.gt/