Labor Flexibility Put into Practice

Gessa employees in Costa Rica will work one day less per month and they will see their salary reduced proportionately.

Monday, June 1, 2009

The management and employees of the administrative and logistics sector company agreed not to work the third Friday of each month in an effort to cut costs and avoid personnel layoffs.

The Ministry of Labor limited itself to verifying that 100% of employees were in agreement with the measure. Given that the law of labor flexibility is still pending in Congress, the Ministry cannot yet approve such agreements that are not allowed under current legislation.

Mercedes Agüero writes: "Rodrigo Acuña, director of Labor and Inspector General of the Ministry of Labor, said that the entity has not authorized a single company to sign such an agreement with employees."

More on this topic

Guatemala: Law for Partial Employment Being Prepared

May 2017

The Ministry of Labor is preparing a bill to regulate how companies can carry out part-time hiring, starting in February 2018.

The draft law being prepared by the government will allow the establishment of conditions for part time jobs starting in February next year, when the 175th Labor Organization Convention, approved in January of this year, comes into force.

El Salvador: Labor Flexibility Under Discussion

July 2015

The textile industry has proposed that the government implement labor schemes with flexible hours, allowing plants to operate on shifts of up to 14 and 16 hours.

The proposal involves establishing modern labor schemes, as implemented in other markets, said Patricia Figueroa, executive director of the Chamber of the Textiles, Clothing and Free Zones of El Salvador.

Health Insurance Proposed for Part-Time Employees

February 2012

The Guatemalan Ministry of Labour is working on a bill draft and Labor Code reforms, in order to ensure social security and benefits are given to part-time employees.

The minister, Carlos Contreras, said his organization is working on a bill called the Employment Inclusion Act. It aims to ensure that part-time staff are recruited, but with the guarantee of Social Security payments and the support of the law.

Reduction of Working Hours Stalled

July 2009

Arguing lack of regulations, the Labor Ministry of Costa Rica has rejected requests for reducing the working day.

While Congress studied a Labor Flexibility Law project, the ministry rejected 20 requests by companies from different sectors, who solicited authorization for reducing wages and working time of their employees.

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