Bono 14 Payment: Agreement Suspended in Guatemala

The Constitutional Court provisionally suspended the agreement that allowed companies that currently do not have the economic capacity to comply with the payment of the Annual Bonus, to reconcile the amortization of the obligation with the employees.

Wednesday, July 15, 2020

The agreement of the Ministry of Labor (Mintrab) 250-2020, which was published in the Diario de Centroamérica on July 10, stipulates that in order to postpone the payment of the Bono 14, employers who are not in a position to do so due to the economic crisis resulting from the outbreak of covid-19, could make an application to the Ministry.

See the "System for monitoring markets and the economic situation in Central American countries", prepared by CentralAmericaData.

In response to this decision by the Executive, the Indigenous and Peasant Trade Union Movement of Guatemala (Msicg) and the Honorary Court of the Association of Lawyers and Notaries of Guatemala (Cang) filed actions of unconstitutionality before the Constitutional Court (CC).

On 14 July the CC reported that it had "... decreed the provisional suspension of Agreement 250-2020 of the Ministry of Labor and Social Security, which contains the 'Procedure for Presentation of the Notary Public's Affidavit of Non-payment of the Annual Bonus for Workers in the Private and Public Sectors."

Javier Zepeda, Executive Director of the Guatemalan Chamber of Industry (CIG), told Prensalibre.com that "... As the Chamber of Industry we do not know the substance of this ministerial agreement. We haven't read it, but the issue of the 14th bond, what we believe should be more important at this time, is to try to establish a dialogue between employees and employers, given the situation we are experiencing that also affects workers but also companies on the other hand, many of them do not have the capacity due to the crisis we are experiencing."

Do you need detailed information to understand the new business scenario? Contact Us








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Coronavirus: Proposal of the Industrial Sector

March 2020

In order to mitigate the effects that will derive from the covid-19 crisis, businessmen of the industrial sector of Guatemala ask the government to adjust the measures in aspects such as banking, credit, labor and tax.

Economic activity will be reduced, which we are already experiencing.

Unions Against Part-time Employment

September 2019

Arguing that the regulations contradict some articles of the Political Constitution, in Guatemala union groups brought an action against the agreement that allows companies to hire part-time personnel.

After years of discussion, on June 27th Governmental Agreement 89-2019 was published in the Official Gazette.

Investors On Alert For Reforms Announcement

July 2012

The mere announcement of reforms to the Constitution of Guatemala stops investment because of the removal of confidence and legal security for companies that might come to the country.

During a forum held by the Managers Association of Guatemala (AGG), concern was expressed over the constitutional reform process initiated by President Otto Perez Molina, and the excessive speed in the adoption of new standards such as the Customs and Tax Reform Act, whose implementation has created difficulties for companies.

SMEs exempted from audited financial statements

March 2009

The measure that forced the submission of audited financial statements for the payment of income tax was limited to big enterprises.

The Guatemalan Congress approved Decree number 14-2009 which limited the types of companies that must file audited financial reports.
According to this new provision, small and medium sized businesses are not required to audit their reports, while special contributors and those inscribed under the in-bond industry, export activity and free zone schemes will have to do so.

 close (x)

Receive more news about Economics

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Oct 23)
Brent Crude Oil
41.97
Coffee "C"
108.05
Gold
1,901
Silver
24.69