Guatemala: Labor Contracts Suspended

Following the state of calamity in the country, the Ministry of Labor created an electronic procedure, through which companies can temporarily suspend the contracts of their workers.

Wednesday, April 8, 2020

Ministerial Agreement 140-2020, published on April 7 in the Official Journal, explains that the government measure is temporary and exclusively applicable as long as the circumstances and effects of the covid-19 pandemic, which has been declared worldwide, and its effects on employment contracts persist.

Article 3 of the document states that "... The Electronic Procedure for the Registration, Control and Authorization of Collective Suspensions of Labor Contracts to the General Labor Inspectorate is created, especially and extraordinarily due to the situation of the covid-19 pandemic. The purpose of this electronic procedure is to provide employers with the necessary electronic mechanisms for the registration, control and authorization of collective suspensions of employment contracts."

Article 5 explains that "... Regarding the individual suspension of employment contracts, employers and workers may voluntarily agree to suspend employment contracts, in accordance with the labor regulations in force, respecting labor principles, and the conventions or agreements may be concluded without any kind of pressure affecting the autonomy of the will of the parties involved."

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