While Peru does not have a Labor Code, employment compliance stems from a variety of different regulations that come into play when you hire employees. To stay compliant, you’ll need to set aside time to understand the complexities of these laws or hire an expert in Peru employment compliance. You’ll also need to take the time to learn about Peruvian culture and business etiquette to ensure a smooth recruitment process.
Globalization Partners offers companies the chance to recruit and hire employees without first establishing a subsidiary. Our Employer of Record service means all liability for hiring and employment compliance falls on our shoulders instead of yours.
Recruiting in Peru
Navigating cultural differences is one of the biggest hurdles involved with doing business in an unfamiliar country. A basic understanding of Peruvian business etiquette will go a long way toward ensuring that the staffing and recruitment process is a success for your company. You should keep the following guidelines in mind throughout the process of staffing your Peruvian team.
1. Use Less Direct Communication
Peruvian culture favors an indirect style of communication. If you are too direct or straightforward, your demeanor may come across as harsh and off-putting to your potential hires. Subtle, indirect communication is key throughout the process of staffing and recruiting in Peru.
2. Share Your Personal Space
In Peru, people are generally very open and comfortable being close to each other during conversation. This closeness is more common with friends and family members than business associates, but you shouldn’t be surprised if a candidate gets a bit closer to you than you would expect during a meeting or interview. You should avoid backing away from someone while they’re speaking, as it can be considered rude to do so.
Similarly, don’t be taken aback if a candidate touches your arm or shoulder during conversation. This behavior is more common among friends in the country, but it’s not entirely out of place in a business setting.
3. Avoid Stressing Over Punctuality
In general, Peruvians tend to have a relaxed attitude toward time management. It’s not unusual for people to show up an hour late to social functions. If you plan to have a casual gathering or dinner with job candidates or new hires, keep this fact in mind. Punctuality is a bit more important in business situations, but it’s still considered normal to be a bit behind schedule.
4. Exchange Business Cards
You should plan to exchange business cards during meetings and interviews in Peru. If you want to go the extra mile to make a good impression, consider printing your business cards in Spanish on one side. If you do so, you should present your card to the recipient with the Spanish side facing up.
A Look at the Recruitment Process in Peru
As important as it is to understand the cultural side of staffing and recruiting in Peru, you’ll also need to spend some time familiarizing yourself with the logistics of the process. To reach the widest pool of talent, you should utilize job boards as a recruitment channel. Social media can also be an effective tool for sourcing talent — especially LinkedIn.
Legal Compliance During the Recruitment Process
As you recruit Peruvian talent, you should also be mindful of the country’s laws regarding discrimination. According to the Peruvian Constitution, every person has the right to equality regardless of race, origin, gender, language, economic situation, religion, or any other characteristics. As the employer, it’s your responsibility to abide by this principle throughout the staffing and recruiting process.
To put legal compliance in practice, you should stick to the following guidelines:
- Avoid using phrases like “recent graduate” or “young and dynamic team” in job listings.
- Don’t ask candidates about family status or other protected characteristics, even if you’re just making friendly conversation.
- Ask for candidates’ ages only if they need to be a certain age to perform the job.
Gender discrimination has historically been a problem in Peruvian workplaces, but the country is making strides to change in this regard. As of 2017, Peruvian legislation prevents wage discrimination between men and women in equivalent or identical jobs. During the recruitment process, you should take care to avoid any action that could be perceived as preferential treatment for any gender.
How to Hire Employees in Peru
Peru prohibits direct and indirect discrimination and harassment in job offers and throughout the hiring, compensation, and termination processes. Employers cannot request a background check on job applicants because knowing applicants’ backgrounds could cause discrimination.
You can also choose to hire an employee under a standard probationary period of three months. However, you should put this arrangement in writing to ensure both parties agree to its terms. A decision to extend this period up to six months or a year should also be in writing.
Peru Employment Compliance
Employment contracts in Peru are legally allowed to be written or verbal. However, it’s best to draft a strong written employment contract when you hire employees in Peru. A fixed-term contract for up to five years needs to be in writing and must be registered with the Labour Ministry to meet Peru employment compliance regulations.
Your employment contract should include these details in the local language:
- Compensation (in Peruvian soles)
- Entitlement and termination terms
- Work hours
- Paid vacation time
How to Onboard Employees
When you are ready to onboard your new employees, you should take every step possible to make them comfortable on their first day. Establish the kind of workplace culture you want to promote before they start, then take steps to integrate that culture into your daily routine.
Once an employee signs a written employment contract, it can be tempting to file it and only get it out when necessary. However, it is best practice to go over the employment contract, an office code of conduct, and any other relevant documents on the employee’s first day or during their first week.
Benefits of Peru Hiring Outsourcing
Between figuring out how to hire Peru employees to strictly following matters of Peru employment compliance, hiring can take up a significant amount of your time and resources. Instead, Globalization Partners can change how you expand and hire through our Employer of Record platform.
Instead of setting up a subsidiary before you hire, we’ll hire for you in Peru. This service allows us to hire employees who work on your behalf. We’ll take responsibility for Peru employment compliance, so you have more time to work on what’s essential to your business.
Why Work With Globalization Partners?
Globalization Partners offers an easier way to expand to a new country. When you want to hire employees in Peru, contact us to learn about how our services can help.