Reduction of working hours in the turism sector

On February 29, 2024, the Ministry of Labor, through Ministerial Agreement No. MDT-2024-030 published in the Official Gazette of March 14, 2024, issued the guidelines for the application of Article 47.1 of the Labor Code, regarding the reduction of working hours in the tourism sector:

  •  Decrease in working hours:

Employers in the tourism sector; register as such; prior agreement between employer and worker, may request authorization to decrease the working hours, for a period that may not exceed 6 months, whether this is consecutive or up to two separate periods.

Authorization will be granted in in the following cases:

  1. Force majeure.
  2. Reduction of income.
  3. Verification of losses.
  • Procedure:

To obtain approval on the reduction of working hours, the following documents must be submitted:

  1. Petition, addressed to the regional director of labor and public service, including the reasons justifying the reduction.
  2. Working day reduction agreement signed with the employees.
  3. Austerity plan.
  4. List of the employees and their salaries.
  5. Copies of the RUC and certificate of compliance of social security obligations.
  6. Certificate of tourism registration.
  • Remuneration and registration:

Employees’ wages will be calculated in proportion to the effective working hours. Dividends may only be distributed to the shareholders if the employees are previously paid for the reduced hours.

Social security contributions will be paid on the full 8-hour workday.

The employer shall be responsible for registering in the SUT within 15 days, the reduction in working hours and the period of application.

  • Termination of the labor relationship and indemnities:

If the employer terminates the relationship, prior to the expiration of the term agreed in the contract, unilaterally, during the period of suspension of the working day, the employee will be entitled to the payment of the indemnity provided in art. 188 of the Labor Code. The bonuses and indemnities shall be calculated on the last remuneration received by the employee prior to the reduction of the working day.


DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.