Employment contracts & policies
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Peru
Employment contracts
There are 2 main types of employment contracts: (i) indefinite and (ii) fixed-term:
- Indefinite employment contract: There is no legal requirement to execute indefinite employment contracts in writing, but the recommended approach is to sign a written agreement. Under local law, every employment relationship is presumed to be permanent for an indefinite term, unless proven otherwise.
- Fixed-term employment contract: Despite the presumption that every employment relationship is permanent for an indefinite term, employees may be hired by means of fixed-term contracts in the following cases: (i) for new activities or services, market necessities or where there is an increase in production or demand; (ii) temporary or force majeure cases (eg, natural disasters or replacement of employees who are out on leave for such reasons as maternity, sabbatical or vacation); (iii) seasonal services (eg, fishing); or (iv) specific services where the fixed-term arrangement is permitted by the local law (eg, an audit of financial statements in a given year). Fixed-term employment contracts must be executed in writing. In some specific cases, fixed-term agreements may be extended for a maximum of 5 years.
It is also possible to hire an employee under a part-time employment contract, which may be indefinite or for a fixed term, if the employee works less than 24 hours per week. This contract must be registered with the Labor Ministry.
Probationary periods
Generally, the maximum permitted duration of a probationary period is 3 months. The probationary period may be extended for up to 6 months for so-called “trusted personnel” (defined below) or when the employee must be trained first. Where an employee is “managerial personnel” (defined below), the probationary period may be extended for up to 1 year.
According to local law, “trusted personnel” means (i) any employee who reports directly to managers or (ii) employees who have access to industrial, commercial or professional secrets and confidential information. “Managerial personnel” means any employee who represents the employer in front of other employees and/or 3rd parties or has managing and control functions.
Protection against arbitrary dismissal applies after the probationary period expires – meaning that companies may terminate the employment contract of a non-probationary employee only when having justified cause and after providing prior written notice pursuant to local law.
Policies
Policies that are mandatory for all companies irrespective of the number of employees are:
- Policy on Prevention and Punishment of Sexual Harassment
- Policy about Health and Safety at Work and
- Policy about the structure of the job roles and salaries of the company, in order to avoid any salary discrimination between men and women.
For companies with 20 or more employees, employers must implement:
- Internal Regulations on Health and Safety at Work.
For companies with 20 or more female employees of childbearing age, employers must implement:
- Rules on breastfeeding room in workplace
For companies with more than 100 employees, employers must implement:
- Internal Labor Regulations, which must be approved by the Labor Administrative Authority.
Third-party approval
Part-time employment contracts must be registered with the Labor Ministry.
An employment contract with a foreign citizen must also be approved by the Labor Ministry.