LABOR LAW

An employment contract in Peru is a legal agreement between employer and employee that regulates salary, working hours, benefits, rights, and obligations. It may be for a fixed term or indefinite duration and must comply with current regulations to avoid legal contingencies.

Do employees with indefinite contracts receive the same benefits as those hired for a fixed number of months?

Yes. Both fixed-term and indefinite contracts grant the same social benefits (CTS, bonuses, vacations, among others). The difference lies in the company’s labor regime (MYPE regime, general regime, or special regime by sector).

What happens if an employee hired for a fixed period continues working after the contract expires?

If the employee continues providing services after the expiration date of a fixed-term contract, the law automatically converts it into an indefinite-term contract, granting job stability.

What is the maximum duration for fixed-term contracts?

Fixed-term contracts in Peru cannot exceed a total of 5 years, although the regulations recognize different types of temporary contracts depending on the company’s needs.

Advisory on dismissals allows companies and employees to comply with the law when terminating an employment relationship. This includes respecting deadlines, acquired rights, and procedures regulated by the Law on Labor Productivity and Competitiveness.

How must a dismissal be carried out?

A justified dismissal must follow due process: notification through a pre-dismissal letter, granting a period for the employee to submit their defense, evaluation of the response, and finally, the dismissal letter. All of this under the principle of immediacy.

Is it possible for the employee to submit a defense and have the charges dismissed based on it?

Yes. If the employer considers the employee’s defense valid, they may revoke the dismissal and maintain the employment relationship.

Does the dismissed employee retain the same social benefits?

Dismissal does not affect accrued social benefits. The employer must pay them within a maximum of 48 hours after termination.

Social benefits in Peru are mandatory labor rights that companies must comply with. These include vacations, CTS (Compensation for Time of Services), bonuses, profit sharing, and family allowance.

If I do not take my vacation on time, am I entitled to compensation?

Yes. The employee is entitled to the so-called “triple vacation pay”: payment for unused leave, payment for work performed during that period, and an equivalent indemnity.

When is CTS deposited?

Compensation for Time of Services (CTS) is deposited twice a year: in May and November. Non-compliance results in penalties for the employer.

Is profit sharing mandatory for all companies?

No. Only companies with more than 20 employees are required to distribute profits.

Every company in Peru must have internal work regulations (IWR), job description manuals (JDM), occupational health and safety regulations (OHSR), and workplace harassment prevention policies, in compliance with current regulations. Our team provides advisory services for the drafting, updating, and implementation of these documents, ensuring they are tailored to each organization’s industry and needs.

Which companies are required to have Internal Work Regulations (IWR)?

Companies with more than 100 employees must have an approved and current IWR.

Is the Occupational Health and Safety Regulation (OHSR) mandatory?

Yes, all companies with dependent employees must implement an OHSR.

What happens if a company does not have workplace harassment prevention policies?

It may face fines from Sunafil and be exposed to lawsuits for non-compliance with labor regulations.

 
 

Sunafil labor inspections are becoming increasingly frequent and may result in significant fines. Our team provides preventive legal support and assistance during inspections, ensuring that the company responds properly to requirements and minimizes the risk of sanctions.

What documents can Sunafil request during a labor inspection?

It generally requests payroll records, employment contracts, pay slips, attendance records, and occupational health and safety documents.

What should I do if Sunafil arrives at my company without prior notice?

The inspection must be allowed, and a legal representative should be designated to attend the inspector. Having immediate legal advice is key to avoiding contingencies.

What are the most common sanctions imposed by Sunafil?

Fines for lack of employment contracts, non-compliance with health and safety obligations, labor informality, or absence of internal policies.

Labor training is essential to prevent legal risks and ensure that employers and employees understand their rights and obligations. We offer programs tailored to each organization, with a practical approach to hiring, occupational health and safety (OHS), workplace harassment, equal opportunity, and other key topics.

Are labor trainings mandatory for all companies?

Yes, in matters of occupational health and safety, equal opportunity, and prevention of workplace harassment.

What are the benefits of training staff in labor regulations?

It reduces the risk of sanctions, improves the work environment, and strengthens company productivity.

Can training replace a Sunafil sanction?

In some cases, Sunafil allows training to be part of corrective measures, but it does not replace imposed fines.

 
 
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At Gálvez Monteagudo Abogados, we provide comprehensive labor law advisory services in Peru, covering all aspects that impact companies and employees: from wage inequality, dismissals, workplace harassment, outsourcing, and data privacy, to Sunafil inspections.

We are a leading firm for companies, micro and small enterprises (MSEs/SMEs), and individuals who need to navigate the increasingly complex labor landscape. Our team offers support both in preventing contingencies and in defense during litigation, always with a practical, strategic, and results-oriented approach.

Our Labor Law services include:

  • Prevention of labor risks and reduction of business contingencies.
  • Advisory in out-of-court matters and labor conciliation.
  • Defense and legal representation in judicial litigation.
  • Support during Sunafil inspections and audits.
  • Design of hiring modalities for national and foreign employees.
  • Implementation of lactation rooms, compliance with disability quotas, and other legal formalities.
  • Corporate training to strengthen labor management and decision-making within the regulatory framework.
  • Advisory and defense planning in labor arbitration cases.

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