Expanding to Nicaragua is a great opportunity for business success but it’s also challenging to figure out how to recruit and hire Nicaragua-based employees and follow all of Nicaragua’s employment laws. G-P makes it easy to compliantly hire, onboard, and pay employees, so you can focus on building your teams.
Recruiting in Nicaragua
When it comes to sourcing talent in Nicaragua, there are a few approaches you can take. Your internal team can 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 or resources to spare during the recruitment process, this option may not be a good fit for your business.
Alternatively, you can partner with a traditional hiring agency. 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, an Employer of Record in Nicaragua can be more cost-effective and help to ensure compliance throughout complex HR and legal tasks involved in the recruitment process, freeing up your team to focus on other key operations.
Laws against discrimination in Nicaragua
Nicaragua’s 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:
- Religion
- Political views
- Race
- Gender
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 hiring process.
How to hire employees in Nicaragua
You’re legally required to hire Nicaragua-based 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 cordobas so that there’s no risk of miscommunication.
If you hire Nicaragua-based 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 laws stipulate a cap of 8 working hours per day and 48 hours per week. Night shifts require 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 3 extra hours per day and 9 extra 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. 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 employees in Nicaragua. It’s always best to review the employment contract with employees during their first day. 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.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 global employment platform, you have the recruitment tools and services you need to find your perfect full-time or contract match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.