Arguing that the measures applied by the government directly harm employees and owners of restaurants and bars, a group of businessmen in Guatemala filed a legal action in the Constitutional Court.
Restrictions to productive activity have already been applied for days, since with the purpose of promoting actions aimed at interrupting the epidemiological chain of the Covid-19 disease, on April 17 Ministerial Agreement 87-2021 was published in the Diario de Centroamerica, a regulatory framework that requires a 25% reduction in the capacity of shopping centers, shopping malls, convenience stores and restaurants.
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.
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.
For Fitch Ratings, the results of the General Elections in Guatemala put at risk the approval of reforms necessary for the development of the country, since the next legislature will be composed of deputies from 15 different political parties.
The deputies to the Congress of the Republic who were elected for the 2020-2023 period and who will take office on January 14, 2020, will have the challenge of directing efforts from the legislative in the area of economic development.
The struggle between political parties paralyzes Congress which is not approving the legislation necessary to keep the economy competitive.
According to the Foundation for the Development of Guatemala (Fundesa), if you want to improve competitiveness, job creation and economic growth, a series of initiatives which have been stalled in Congress since January must be passed, including the law to create a national system to regulate competition and temporary work.
Several bills have been prepared on investment and employment, including labor, competitiveness and productivity, industrial property, real estate guarantees, factoring and leasing, among other topics.
A statement from the Ministry of Economy reads:
This morning the President, Otto Perez Molina, presented to the Congress: 3 new laws, 2 reforms and 4 initiatives, which have been favorable received, in order to encourage and facilitate the generation of formal employment in Guatemala.
Central to the package of nine bills submitted to Congress is the Law for Promotion of Investment and Employment.
An article on S21.com.gt reports that "On January 14, President Pérez Molina will present a package of nine bills to Congress, three of which are new. There are four which already have assent and two amendments to existing laws, which together seek to create new jobs and bring more formality to the labor force, and hence attract more and better investments in the country."
Guatemala's Congress has 44 laws pending in economic and financial matters, which are key for improvement of the economy.
Modifications to the Acquisitions Law and the state purchasing process, a new municipal tax code, rules for regulating insurance activity and a law proposal for mega projects are some of the laws pending approval.
From Prensa Libre's website: "The process for establishing priority projects will be carried out next Wednesday by the Economy Comission".