Hire in Peru

The following terms, as governed by the law, are implied in the employment relationship:

• Working hours
• Social benefits
• Trial period
• Health and safety at work obligations
• Data protection obligations

Collective Agreements

Employees may benefit from rights as detailed in collective agreements. It is possible for these rights to stem from a majority union (where the collective agreement applies to all employees) or a minority union (where the benefits apply only to union affiliates).

In general, employers are allowed to verify candidates’ education and prior employment history. Employers may also conduct the following reviews:

• financial checks for jobs that involve handling money
• for drug or alcohol usage (but only if the individual has a job where use of drugs could threaten the safety of others)
• for criminal records after the first interview

There are no mandatory pre-hire checks but for work that is considered high-risk (e.g. in the mining industry), employers must perform occupational medical exams on their candidates.

• Three months for regular staff, extendable for another three months.
• For employees in management positions, the probation period can be between six and 12 months.

The allowed maximum working days in a week is six days, with either eight of those hours worked per day or 48 hours worked per week. Employees have an entitlement to a minimum of 45 minutes’ lunch break.

An employer cannot compensate less than 25% of the total remuneration of the employee for the first two hours of overtime. Every extra hour after the first two hours will incur a surcharge of not less than 35% per hour.

The agreed amount to be paid for overtime can be negotiated between the employer and the employee, as long as it is not less than stated above.

Any company with more than 20 employees must share their yearly pre-tax profits with the employees. The following provisions apply:

• Companies in telecommunications, manufacturing and mining must share 10% of their pre-tax profits
• Wholesale entities, retail businesses, restaurants and mining companies share 8% of their pre-tax profits
• All other companies share 5% of their profits

Profits shared to employees are a deductible tax expense.

Employees have entitlement to two bonuses every year, with one being administered for Independence Day of Peru in July and the other administered at Christmas.

Employees are not required to be consulted on redundancies but they must be consulted prior to business transfers.

Employees cannot be terminated without due cause or through a scenario deemed an arbitrary dismissal. Once the probation period ends, an employee can only be terminated for fair reasons and on objective grounds, including a criminal conviction for fraud or other serious offenses. Other examples include:

• completion of the task or service
• upon mutual agreement
• a worker’s permanent total disability
• unforeseen event, such as a natural disaster or the employer declaring bankruptcy

The employer must provide to the employee, in writing, the reasons for their dismissal. Plus, they must give at least six calendar days’ notice for the employee to present them with a response. This notice period can also be extended, except in cases where serious offenses have occurred. During this notice period, the employer may release the employee of their work obligations by written notice but must still compensate them for the corresponding remuneration and labor benefits.

It is illegal to dismiss employees on the following grounds:

• due to union membership
• for submitting a complaint against the employer
• within 90 days of childbirth

For non-compliance with safety regulations and non-payment of wages, employees have the right to take action for constructive discharge.

The notice periods for dismissals based on fair reasons are as follows:

• Dismissal resulting from lack of capabilities: 30 calendar days
• Dismissal reasons related to major faults or misconduct: six calendar days

For terminations that occur as a result of an employee’s personal conduct or capacity, there is no requirement for the employer to pay severance.

When an employee is terminated without cause, the severance payment amount is the average monthly compensation for each year of the employee’s service up to a maximum of 12 months.

During the terms of an employment contract, an employee is forbidden to compete with the employer in its line of business.

After the employment contract has been terminated, there is no regulation that prohibits the employee from competing. However, a post-contractual non-compete clause can be included, which must be fixed in duration. Compensation must also be given to the employee.

Fixed-term contracts must be detailed in a written document and may only be used for a period of up to five years in total.

Employers are required to register fixed-term contracts with Peru’s Labor Ministry.

There are various types and subcategories of fixed-term contracts, including temporary projects, evolving market needs and entrepreneurial reorganization agreements.

Salary payments must be distributed monthly via cash or bank transfer.

Payslips must document the remuneration and any deductions for pension and social security contributions. They must be delivered to employees no later than three business days after the payment date.

• Employees are entitled to 30 calendar days of paid vacation leave each year.
• At least 15 days off must be granted each year and payment can be offered in lieu of any unused vacation time.
• Vacation days are calendar days, not business days only.

Employees are entitled to 20 days of paid sick leave, compensated by the employer at a rate equivalent to the employee’s full wages.

Starting the 21st day, ailing employees can draw sick benefits from ESSALUD (‘Seguro Social de Salud del Peru’), the Peruvian social security agency, for the next 11 months. This applies for each instance of illness.

For the public sector, five days of paid leave are granted for the death of an immediate family member, which can be extended for an additional three days if the death occurs outside of the city in which the employee works.

Maternity Leave

• The total length for maternity leave is 98 days, which includes 49 days for prenatal and postnatal leave. The employer may give the employees an exception when the new child has a disability or if an additional child is born during that time. In either of these cases, the postnatal leave can be extended by the employee up to 30 calendar days.
• Maternity benefits, which amount to the mother’s full wages, are distributed by the social security fund.
• Lactation period begins once the official 98 days are over and until the baby reaches one year old. The mother is entitled to one hour each day to step away from the work environment and breastfeed the child.

Paternity Leave

• Fathers are entitled to 10 consecutive days of paid paternity leave for natural births by their partners and up to 30 days in case of multiple births, delivery complications, illness or disability of the mother.

Nursing Care/Breastfeeding Leave

• The working mother, at the end of the postnatal period, is entitled to one hour a day of breastfeeding leave, until her child reaches one year in age.
• In the case of multiple births, the breastfeeding leave will be increased by an additional one hour each day.

Adoption Leave

For each child adopted below the age of 12, adoptive parents are eligible to receive 30 days of paid leave.

Hospitalization Leave

Employees can take up to seven days off to cater to ailing or injured first-degree relatives.

Civil duty Leave

Firefighters and military personnel can take paid leave from work if they’re called for service.

Employees are entitled to 15 paid public holidays in each calendar year.