Expanding to Nicaragua is a great opportunity to celebrate new business relationships, talented employees, and more. However, it’s also a challenging time during which you have to figure out how to recruit and hire Nicaragua employees and follow all of Nicaragua’s employment compliance laws. Globalization Partners will make it easy to hire employees and continue to run all your business locations at the same time using Nicaragua hiring outsourcing. Plus, we’ll act as the Employer of Record to manage all compliance while you manage your company.
Recruiting in Nicaragua
You’ll want to consider your options for sourcing local talent, the best recruitment channels, and the laws you’ll need to follow to stay compliant from day one of your expansion.
Your company has a few different choices when it comes to sourcing talent in Nicaragua. You can have your team handle the recruitment process from start to finish, posting on job boards and advertising your open positions in local papers. If you don’t have much time to spare during the recruitment process, this option may not be a good fit for your business.
Alternatively, you can outsource the recruitment process by working with a traditional hiring agency or a global PEO. While many companies do choose to work with recruitment agencies, it’s important to remember that the agency is ultimately not going to be responsible for complying with Nicaraguan law. The compliance risks fall on your shoulders.
On the other hand, a global PEO will act as your Employer of Record in Nicaragua and assume those responsibilities on your behalf. Working with a PEO can also be more cost-effective than hiring a traditional firm, especially if your PEO offers recruitment as part of an inclusive platform.
Laws Against Discrimination in Nicaragua
The Nicaraguan constitution states that working is a social responsibility and the right of all citizens. Under the law, citizens are entitled to equal pay for equal work and freedom from discrimination based on the following traits:
- Political views
Workers also have the right to participate in labor unions, so union membership should play no role in hiring decisions you make for your company. To stay compliant with Nicaraguan law, your recruiting team should avoid asking any questions about these protected characteristics. While some of these traits might come up when you’re getting to know a prospective employee, it’s important to separate that information from other factors during the staffing process.
How to Hire Employees in Nicaragua
You’re legally required to hire Nicaraguan employees using a fixed-term or indefinite-term written employment contract. All contracts should be in the employee’s local language with multiple employment terms included, such as compensation, benefits, termination requirements, and related factors. Make sure all compensation and salary amounts are in Nicaraguan córdobas so that there’s no confusion between you and the candidate you wish to hire.
If you hire Nicaraguan employees under an indefinite employment contract, you’re allowed to use a trial period that can’t extend past 30 days. Either party can terminate the employment relationship during that time without any liability.
Nicaragua Employment Laws
Nicaragua’s employment compliance laws stipulate a cap of eight working hours per day and 48 hours per week. Night shifts have a maximum of 42 hours a week, and mixed shifts can’t exceed 45 hours a week. If employees work any overtime hours, they can’t work more than three hours per day and nine hours total per week. Overtime should get paid at double the employee’s usual rate.
Although Nicaragua’s laws don’t include any specifications about hiring multiple members of one family, many employers do. Hiring one complete family to work at your subsidiary has pros and cons that you should consider before making a decision. However, make sure that the employees you hire know one way or the other if you’re planning to hire the rest of their family members.
Onboarding in Nicaragua
Onboarding employees will be your next challenge after figuring out how to hire Nicaraguan employees. We recommend reviewing the employment contract with employees during their first day with your company. You can also take that time to go over other important documents related to your company. Finally, you should put together a job training program to make sure every employee is fully ready to take on their new position.
Benefits of Hiring Outsourcing in Nicaragua
Choosing Nicaragua hiring outsourcing with Globalization Partners can deliver a variety of benefits. First, we’ll handle both the hiring and onboarding process using our Nicaragua PEO. Then, we’ll take on all the compliance as the Employer of Record. Instead of waiting up to a year to hire employees as you set up your subsidiary, you can let us help you get started working in a day or two.
Work With Globalization Partners To Expand Globally
Globalization Partners is the partner you need for a successful expansion. Contact our team today to learn more about Nicaragua hiring outsourcing and our full suite of global expansion services.