Peru’s labor laws are laid out in its Ley General del Trabajo, with additional employment compliance stemming from a variety of regulations that come into play when hiring employees. To stay compliant, companies need to set aside time to understand the complexities of these laws, or hire an expert in Peru for support with employment compliance. They should also take the time to learn about Peru’s culture and business etiquette to ensure a smooth recruitment process.
Recruiting in Peru
In addition to understanding cultural norms and employee expectations when recruiting in Peru, becoming familiar with the logistics behind the process is also key. For example, to reach the widest talent pool, companies should utilize job boards as a recruitment channel. Social media can also be an effective tool for sourcing talent in Peru — especially LinkedIn.
Laws against discrimination in Peru
Companies expanding into Peru should be mindful of the country’s laws regarding discrimination. According to Peru’s constitution, every person has the right to equality, regardless of race, origin, gender, language, economic situation, religion, political opinion, or any other characteristic. It is the employer’s responsibility to abide by this principle throughout the recruiting and hiring processes.
To ensure compliance with local laws, it is necessary to adhere to the following guidelines:
- Avoid using phrases such as “recent graduate” or “young and dynamic team” in job listings.
- Don’t ask candidates about family status or other protected characteristics.
- Avoid asking about a candidate’s age, unless this is a justified requirement for the performance of the job position.
To ensure gender equity, Peru’s laws prevent wage discrimination between men and women in equivalent or identical jobs. During the recruitment process, companies should avoid any action that could be perceived as preferential treatment toward 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 may request certain documents or information from candidates in Peru including a declaration that they do not have a criminal record, evidence of their previous work experience, and letters of recommendation.
Employers can also choose to hire an employee under a standard probationary period of 3 months. However, this arrangement should be added in writing to ensure both parties agree to its terms. Employers may extend the probationary period to 6 months, or a year for management/trust positions.
Peru employment laws
Employment contracts in Peru are legally allowed to be written or verbal. However, it’s best to draft a strong written employment contract when hiring employees in Peru. A fixed-term contract for up to 5 years is permitted under certain circumstances and needs to be in writing and must be registered with the Labor Ministry to meet Peru’s employment compliance regulations.
The employment contract should include details in the local language, including:
- Compensation in Peruvian soles.
- Entitlement and termination terms.
- Work hours.
- Paid vacation time.
Onboarding in Peru
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, code of conduct, and any other relevant documents on the employee’s first day or during their first week.
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