Guatemala Analyzes Reform to Labor Code

In consideration to an announcement made by the U.S. regarding the possibility of a labor lawsuit against the country, the Government is currently discussing reforms to the labor code.

Friday, March 11, 2011

The reforms to the Code and to the Law on Promotion of Export Activity and Textiles, seeks to empower the Ministry of Work to be able to impose sanctions and require companies to make a deposit in order to cover severance and other social benefits.

"... when the inspector determines there is a violation he may impose penalties upon the company through administrative acts rather than go to court, which takes several months to resolve," stated to the Minister of Work, Carlos Machado.

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Costa Rica: NO to Essential Services Strikes

August 2015

The Supreme Court has ruled to leave in place the veto of the Law known as the Labor Procedure Reform, which allowed strikes to be called on essential services such as ports, hospitals and public transportation.

From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):

Flexible Working Hours in Guatemala

July 2012

An agreement has made between government, unions and employers, to present a bill to allow and regulate part-time work.

Elsa Avalos, deputy minister of labor, said the proposal is in "stage of consensus" and then will be passed to Congress.

The initiative aims to make recruitment more flexible and allows temporary workers to benefit from "all aspects of the law."

Guatemala Urged to Improve Labor Standards

May 2012

Brands like Adidas, American Eagle Outfitters, Gap, Liz Claiborne, Nike, Phillips-Van Heusen and Vanity Fair asked the Government of Guatemala to review labor laws.

A group of U.S. retailers and brands such as Adidas, American Eagle Outfitters, Gap, Liz Claiborne, Nike, Phillips-Van Heusen (PVH) and Vanity Fair (VF) said they want to see a "timely resolution" to the labor demands presented in 2008 against Guatemala under the framework of DR-CAFTA.

Guatemalan Government Prepares New Labor Policy

April 2009

The new policy seeks to generate 200 thousand new jobs per year and it will be presented before the second half of the year.

The minister of labor, Edgar Rodríguez, stated that the measures contemplate labor flexibility.

In statements to, the official said: "It would allow companies to hire according to their necessities, therefore we see an opportunity there to create new jobs."

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