Because in Costa Rica the regulations authorizing companies to reduce working hours expire in December 2020, businessmen in the tourism sector are asking the Assembly to extend the deadline.
When the first cases of covid-19 were registered, the "Law Authorizing the Reduction of Working Days in view of the National Emergency Declaration" was approved. The validity of this regulation expires next December, but, the businessmen see the need to extend its validity.
Focusing the skills of employees according to new opportunities and approving laws that allow for more flexible labor agreements are some of the proposals being discussed in Guatemala for companies to face the new labor reality.
Following the economic crisis that caused the outbreak of covid-19, the recovery and generation of jobs is one of the issues that occupies much of the attention of the government in Guatemala.
A decree was published in Panama authorizing the modification or temporary reduction of the working day, which due to the economic crisis generated by covid-19 may be reduced by up to 50%.
The new regulation establishes that the agreement to modify working hours must include methods to achieve the gradual recovery of working hours to the levels existing before the crisis and that they must not affect the hourly rate agreed in the current employment contract, reported the Ministry of Labor and Labor Development.
The Executive Branch endorsed the new law that allows companies to temporarily reduce the working hours agreed with their employees, in the context of the crisis generated by the covid-19 virus.
On the morning of March 21, the deputies gave the second debate with 47 votes and unanimous approval to file 21854, the law authorizing the reduction of working hours prior to the declaration of a national emergency, reported the Assembly.
After heeding the objection made by the Executive to the project approved in October 2019, the Assembly proceeded to give its endorsement to the law that establishes the rights and responsibilities of employers and workers in the country who use the telework modality.
After the Constitutional Court temporarily suspended the legal framework regulating part-time work in Guatemala, a new proposal advances in Congress.
This is bill 5477 has received a favorable opinion from the Labor Commission of the Congress of the Republic and is pending discussion in the plenary of deputies.
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.
How many hours you can hire under this modality and what type of coverage the Social Security will give these workers, are some of the doubts that businessmen still have in Guatemala.
Regarding the number of hours an employee can be hired, Juan Ernesto de León, vice-president of the Labor, Legal and Human Resources Committee of the Guatemalan American Chamber of Commerce (AmCham), explained to Prensalibre.com that "...
The business sector welcomes the passage of the bill in the first debate, and say that "its implementation will bring significant savings to employees and businesses.”
With 52 votes in favor and zero against the Legislative Plenary, it approved in its first debate, the file 21.141 Law to Regulate Telework, which aims to regulate this activity as an instrument to generate employment, informed the Legislative Assembly on July 30.
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.
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.
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.
In Guatemala, the debate on the legalization of part-time employment was reactivated, but the regulation, which for years has been promised to be approved, is still not a reality.
The inflexibility of the Guatemalan labor market is an issue of concern to investors, since for years the authorities have been promising to support the necessary changes so that companies can hire staff for the periods they require and not always based on the standard schedule of eight or twelve hours.
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.
13% of Panamanian businesses reported that for the first quarter of 2018 they plan to increase their payrolls, a percentage that is identical to that registered in the same quarter of 2017.
According to data from the "Employment Expectations Survey" by ManpowerGroup, in the first three months of 2018, 13% of Panamanian employers plan to increase their staff payrolls, 78% think that they will not make changes, 7% plan to reduce them, and 2% do not know if will make any changes.
For the first quarter of 2018, 24% of companies in Costa Rica expect to increase their payrolls, 71% do not foresee changes and 4% anticipate a reduction.
From the ManpowerGroup report:
Comparative by Region Employers of the six regions foresee an increase in their workforce for the following quarter.The strongest hiring plans are reported in Heredia, where employers report a Net Employment Outlook of + 22%.