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.
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.
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.
An agreement has made between government, unions and employers, to present a bill to allow and regulate part-time work.
The new policy seeks to generate 200 thousand new jobs per year and it will be presented before the second half of the year.
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