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Last updated on: April 23rd, 2024

Labor Requirements

The Guatemala workforce consists of an estimated 1.93 million individuals employed in the formal sector and roughly 4.47 million individuals who work in the informal sector, including some who are too young for formal sector employment. The Labor Code sets out employer responsibilities regarding working conditions, especially health and safety standards, benefits; severance pay; premium pay for overtime work; minimum wages; and bonuses.

Hours & Pay Regulations

Normal Working Hours

Guatemalan labor law classifies three types of standard working time on which the restrictions on working hours are based:          

      • Standard daytime work: Between 6:00 am and 6:00 pm of the same day. It cannot be more than eight hours a day, nor exceed a total of forty-eight hours a week.
      • Standard night-time work: Between 6:00 pm one day and 6:00 am the next day. Within these parameters, the standard working hours cannot exceed six hours per day or 36 hours per week.
      • Standard mixed-time work: This is any time that comprises both standard daytime and standard night-time work. Within these parameters, the standard working hours cannot exceed seven hours per day or 42 hours per week,

However, if four or more effective working hours occur within the standard night-time period, then the entire work period is legally considered night-time work. Therefore the standard night-time working hour restrictions will apply. Each period of standard working time may be extended by up to two hours by agreement between the employee and the employer, provided that the work is not hazardous and does not exceed the total weekly hours permitted by law. Art 116-118, Guatemala Work Code. 

 

Recording Requirements – Employers must record in their salary books or payroll, separately from what refers to ordinary work, what they pay to each of the workers for extraordinary work. Art 123 of the Labour Code.

Overtime

Standard working time is considered “ordinary hours”, whilst work carried out beyond the standard working time restrictions outlined above is considered “extraordinary hours” (overtime). 

 

Any hours worked over 8 hours per day and 48 hours per week is considered as overtime. 

 

The total daily working hours In any event, cannot exceed a total of 12 hours a day (inclusive of overtime).

 

Pay – Any work carried out beyond the standard working time restrictions is considered extraordinary hours (overtime), and is subject to an additional payment of 50% of the employee’s regular rate of pay. 

Night Work

Standard Night work is between 6:00 pm one day and 6:00 am the next day. The ordinary working night shift cannot be greater than 6 hours a day or exceed a total of 36 hours a week. Labor Code, §116.

Breaks

Working time may be continuous or divided into two or more periods with rest breaks, according to the nature of the work and the employee’s needs. However, if standard working time is continuous, the employee has a right to a rest break of at least 30 minutes within the working time, which must be counted as effective working time. Art 119 of the Labour Code.

 

Weekly Rest – Every employee has the right to enjoy one day of paid rest after each week of the job. The week will be computed from 5 to 6 days according to the agreement between the employer and the employee.

Work On Rest Days

Hours worked on weekly rest days and official holidays are considered overtime and are paid at a premium of 150% of the normal rate of an hourly wage, which is the total amount of ordinary and extraordinary fees for the last week or the last 15 or 30 days, depending on whether wages are paid per fortnight or per month.

 

The employer is obliged to pay for the weekly rest day, even when one or more days of rest coincide in the same week, and also when a paid day of rest and a weekly rest day coincide. Art 126, 129 of the Labour Code.

Public Holidays

The Guatemalan Labor Code recognizes the following dates as the public holidays with paid leave:

      • January 1: New Year’s Day
      • Holy Thursday, Friday and Saturday;
      • May 1: International Workers’ Day known as Labour Day
      • June 30: Army Day
      • September 15: Independence Day
      • October 20: Revolution Day
      • November 1: All Saints Day
      • December 24: Christmas Eve (Noon award)
      • December 25: Christmas Day
      • December 31: New Year’s Eve (Noon onward)
      • The local holiday (usually a patron saint)

The employer is obliged to pay the weekly rest day, even if one or more days coincide with the same week of holiday, and also when a day of holiday coincides paid and a weekly rest day. Labor Code, §127.

 

Work on a Holiday or Rest Day – There are times due to extraordinary situations at work or due to the nature of it, the employer may require an employee to work on a public holiday. Hours worked on weekly rest days and official holidays are considered overtime and are paid at a premium of 150% of the normal rate of an hourly wage, which is the total amount of ordinary and extraordinary fees for the last week or the last 15 or 30 days, depending on whether wages are paid per fortnight or month. Labor Code, §128.

 

Holiday Pay Calculation – Payment of weekly rest days or holidays must be done following the daily average of ordinary and extraordinary salaries that the employee has accrued during the immediate week previous to the rest or break in question. When the salary is stipulated per fortnight or month, it implicitly includes the payment of weekly rest days or days off that are not worked. Art 129 of the Labour Code.

Annual Leave

Duration of Annual Leave – Employees shall be entitled to 15 consecutive calendar days per year after completing 12 months of continuous work with the same employer. The employer must indicate to the employee the time in which, within the sixty days following that in which the year of continuous service was completed, they must enjoy their annual leave. 

 

Eligibility of Annual Leave – The employee must have worked at least 150 days in the last year to be entitled to the annual leave. 

 

Annual leave is not compensable in money, except when the employee who has acquired the right to enjoy them has not enjoyed them due to ceasing work for whatever reason. The employee is prohibited from providing his services to anyone during the annual leave period.

 

When the employee stops working for whatever reason, before completing one year of continuous service, or before acquiring the right to a new period, the employer must compensate the employee in money for the proportional part of his vacation following his time. of service. 

 

Accumulation/Division of Annual Leave – The division or accumulation of annual leave in general cases is not permitted. However, if the work is special, where the long absence cannot be allowed, the annual vacation can be divided into a maximum of two parts. 

 

The days in which the employee does not render services due to having paid leave, established by this Code or by a collective agreement, due to professional disease, common disease, or work accident, will be counted as worked as part of the annual leave calculation.

 

Annual Leave Pay – The amount that the employee is entitled to receive for annual leave is an average of his ordinary and extraordinary remuneration in the last three months (for agricultural employees) or last year (for other categories of employees).

 

Termination – An employee cannot receive compensation for annual leave, except in the case of termination of the contract before the holiday. A worker is entitled to compensation for a proportional vacation if there is a termination before completing a year of service. Art 130-137 of the Labour Code.

Special Leave

Sick Leave

Duration of Sick Leave – An employee is entitled to sick leave for up to 6 months.

 

Eligibility of Sick Leave – An employee must have made contributions for 3 months during the 6 months before the sick leave begins. 

 

Sick Leave Pay – An employee is entitled to two-thirds of an employee’s average income paid as sickness benefit, up to a maximum of 180 days; It can be extended to 39 weeks. 

 

The combined maximum benefit for several periods of disability is 52 weeks in 24 months. §28 & 31 of Decree no. 295, National Profile of the ISSA.

 

Other Paid Leave

Employees shall be entitled to the following paid leave – 

      • When the death of the spouse, parent, or child – 3 days.
      • When the employee got married – 5 days
      • For the birth of a son – 2 days.
      • When the employer expressly authorizes other permits or licenses and has indicated that these will be also paid.
      • To answer a judicial summons for the court to take the appearance as long as it does not exceed half a day within the jurisdiction and one day out of the department in question.
      • For the performance of a union function, provided that this is limited to members of the Executive Committee and does not exceed 6 days in the same calendar month, for each of them. Notwithstanding the foregoing, an employer must grant leave without pay to the members of the aforementioned Executive Committee that they request it, for the necessary time to attend the attributions of his position.
      • In all other cases specifically provided for in the collective agreement or agreement of conditions of the job.

    Labor Code, §61(o).

    Maternity Leave

    Duration of Maternity Leave – An employee is entitled to paid maternity leave of  84 days divided into a prenatal and postnatal period as follows:

      

          • Prenatal: 30 days before the estimated delivery date.
          • Postnatal: 54 days after delivery.

     

    Early Birth – If the baby is born before that date, during the prenatal break, the days are moved and added to the assigned postpartum days.

            

    Eligibility Criteria – Employee must have been employed with the same employer for at least 180 days within the past year or 90 days within the last 6 months. The employee must have made contributions to the Guatemalan Social Security Institute for 3 out of the 6 months preceding your prenatal leave.       

     

    Pay Benefit – An employee is entitled to maternity leave by social security 

     

    Notice Requirement – An employee must submit medical certification stating the delivery will occur within the next 5 weeks, or 5 weeks counted backward from the estimated date of delivery.   

     

    Miscarriage/ illness during pregnancy – If the woman has a spontaneous or therapeutic abortion, Social Security grants cash benefits for up to a maximum of 27 days from the date of the abortion.

     

    If the woman suffers from an illness caused by complications related to childbirth or pregnancy, they must present medical proof that they are incapable of working. The maximum absence for illness during pregnancy is 3 months.

     

    Breastfeeding Break – The mothers are entitled to two paid 30-minute breaks each day specifically for nursing their child. 

     

    Additionally, they have the flexibility to combine these breaks into a single, one-hour break. This one-hour break can be used either by starting their workday one hour later or leaving one hour earlier. 

     

    The breastfeeding duration lasts for 10 months after a mother returns to work, and can be extended with a doctor’s recommendation. Importantly, employers are required to allow these breaks, and failure to do so can result in penalties. Labor Code, §153.

     

    Adoption Leave

    A female employee who adopts a minor is entitled to the equivalent of post-natal leave as under maternity leave, starting from the day that the minor begins living with the employee. To enjoy this right the worker must present the documents corresponding to the processing of the adoption. Art 152 of the Labour Code.

    Disclaimer: The material provided above is for informational purposes only and is subject to change. We endeavor to keep all material up-to-date and correct but make no representations about the information's completeness, accuracy, or reliability. Laws vary by jurisdiction and are subject to change and interpretation based on individual factors that may differ between organizations. The material is not meant to constitute legal advice and we suggest you seek the advice of legal counsel in connection with any of the information presented.