Change Promise for the Labor Market

Finally, in Guatemala the agreement was approved that will allow companies to hire part-time workers, which promises to be part of the solution to the unemployment problem affecting the country.

Friday, June 28, 2019

On June 27, Governmental Agreement 89-2019 was published in the Official Gazette, establishing the Regulations of Convention 175 of the International Labor Organization (ILO), which will regulate the hiring of part-time workers in the country.

Regarding the application of the regulations, Gabriel Aguilera, Minister of Labor and Social Welfare, explained to that "... people who are hired part-time will also enjoy all the rights, benefits and obligations established in the Labor Code, under ILO Convention 175, which includes all labor benefits and social security, calculated proportionally. The rules established in the regulations only develop the precepts of the convention and clarify the issue of hourly wages, thus establishing the minimum hourly wage in force from year to year."

You may be interested in "Progress in Partial Employment Law" and "Changes the Labor Market Needs

The entry into force of the regulation raises expectations in the business sector, because with the new legal framework is projected the creation of thousands of jobs, being the sectors of clothing and textiles, banking, industry, call centers, technology and restaurants, which could initially take advantage of the new conditions of the labor market.

Alejandro Ceballos, president of the Clothing and Textile Commission (Vestex), said that "... If the regulations are applied as they should be, and taking advantage of the opportunities because of the problems that Honduras, Nicaragua and Mexico are going through, 400,000 jobs can be generated in four years in this industry by itself. Guatemala's working world is changing, and on the other hand there are no longer excuses for informality, it would be a shame. The regulations grant labor flexibilization and the increase of workers to the social security.

To report on the implementation of the regulation, the guild of exporters reported that "... next July 4, 2019, there will be an informative discussion for AGEXPORT partners on the new regulation and how to implement it by companies. In this activity will participate the Minister of Labor and Social Welfare, Mr. Gabriel Aguilera. The quota is limited, to know more details and the cost of the talk send an email to:"

More on this topic

Exporters in Favor of Part-Time Employment

October 2019

After the Constitutional Court suspended the agreement regulating part-time employment in Guatemala, the exporters' union asked to be a third party interested in the case, because without the regulations, the generation of formal employment is weakened.

At the beginning of October, the Constitutional Court (CC) decided to temporarily suspend Governmental Agreement 89-2019, which establishes the Regulations of Convention 175 of the International Labor Organization (ILO) to regulate the hiring of part-time personnel in the country.

The Paradox of Labor Unions

October 2019

Arguing to defend "the interests of the workers", labor union groups in Guatemala filed an appeal against the recently approved agreement regulating part-time employment in the country, and in response, the Constitutional Court decided to temporarily suspend it.

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

Textile Sector Needs More Job Flexibility

May 2019

Because there is still no regulation for part-time employment in Guatemala, textile businessmen estimate that the country loses between 40 and 70 thousand jobs.

For representatives of the Costume and Textile Commission (Vestex), the high operating and labor costs in Guatemala cause businessmen to send cut pieces to Honduras, El Salvador and Nicaragua to be assembled.

Progress in Partial Employment Law

December 2018

In Guatemala, the law regulating part-time work has already been reviewed by the Attorney General's Office and awaits the approval of the Council of Ministers.

Although in August 2017, the Morales administration had planned to approve the law before February 2018, the process has been lengthening, and a government agreement must be issued for it to take effect.