Labor Law in Guatemala: Key Concepts and Regulations

Posted on Jan 6, 2025 in Tourism

Prohibitions and Discrimination

  • Order No. 7: Prohibits work in the exercise of prostitution.
  • Order No. 4 A: Prohibits discrimination based on race.

Key Definitions

  • Intermediary

    The person hired in the service name of one or more persons.

  • Worker

    Any individual who provides services to an employer.

  • Employer

    Any individual or legal entity using the services of one or more workers.

Contracts and Agreements

  • Contracts Not Authorized by the Ministry of Labor

    Guatemalan labor contracts for the provision of services or works outside the territory of the Republic.

  • Collective Bargaining Agreement

    A contract concluded between various labor unions.

  • Collective Agreement on Working Conditions

    An agreement held between one or more unions and one or more employers.

  • Internal Labor Regulations

    The set of standards developed by the employer according to the laws, regulations, collective pacts, and contracts in force that affect it.

  • Number of Workers for Internal Work Rules

    An employer must have ten or more workers to develop their own work rules.

Employee Benefits and Institutions

  • Pre- and Post-Natal Leave

    The rest owed by the employer to the worker.

  • IGSS (Guatemalan Social Security Institute)

    The Guatemalan Social Security Institute.

  • Employer Representatives

    All individuals who exercise on behalf of the employer.

Contract Types and Validity

  • Verbal Employment Contracts

    Applicable to livestock farming and domestic services.

  • Types of Contracts

    • Collective
    • Individual

  • Types of Individual Contracts

    • Verbal
    • Written

Ministry of Labor and Social Prevention

  • Function of the Ministry of Labor and Social Prevention

    Advising the Ministry on wage policy.

Work Performed and Working Hours

  • Work Performed

    The set of rights and benefits acquired by any worker providing services to a company or public/private institution.

  • Working Hours

    • Morning
    • Evening
    • Night

Bonus 14

  • Bonus 14

    An annual payment equivalent to one month’s salary.

Labor Rights

  • Right to Work

    A right protecting workers, trying to compensate for inequality by giving them preferential legal protection.

Contract Suspension

  • Causes of Individual Partial Suspension

    When it affects a relationship, and one party fails to meet its basic obligations.

  • Types of Work Suspension

    • Individual partial
    • Collective partial
    • Representative total

  • Causes of Partial Suspension of Collective Contracts

    Cases deemed attributable to the employer by the labor courts and social prevention.

Wages and Termination

  • Wages or Salary

    The pay the employer must provide to the worker under the contract and labor compliance.

  • Just Cause for Termination

    When the worker behaves immorally or causes injury during work.

Employer Obligations and Leave

  • Leave with Pay

    Granted in cases of death, marriage, or other authorized permits.

  • Voting in Elections

    Workers are entitled to paid time off for voting in popular elections.

  • Death of Spouse

    Workers are entitled to 3 days of leave.

Nature of Labor Law

  • Labor Law

    A branch of public rights.