Tag Archives: Laboral

On December 23rd 2022, by Ministerial Agreement No. MDT-2022-237 (hereafter the “Agreement”) the Labor Ministry established regulatory guidelines for remote work agreements and the exercise of the right to remain disconnected from work, in accordance with the following terms:

•    Employees rendering their services under remote work have the same rights and obligations as employees working on a presence-based modality. 
•    By mutual agreement, the scope of the labor relationship may be remote from the beginning or change to remote at any time thereafter. In any case, the duration must be specified.
•    The employer must provide the necessary inputs and equipment to perform the remote work agreement. Any payment in relation to equipment or supplies required to work remotely are not considered as part of the employee remuneration.
•    The employer must control that safety and occupation health regulations are complied with in the workspace. 
•    The employer has 30 days to register the remote work agreement and 15 days to register the agreement that changes the labor relationship form a presence-based modality to a remote modality in the “Sistema Único de Trabajo” (SUT).
•    The employee has the right to remain disconnected for at least 12 consecutive hours in a period of 24 hours and the employer must control this period of disconnection is complied with. The latter does not imply that 12-hour workdays may be established.
•    Within 90 days from the issuance of the Agreement (until March 23rd, 2023) the employer must establish an internal policy that ensures disconnection time. The policy should include at least the following:

a)    Training and education on the respect of working time and the right to disconnection.
b)    Guidelines for the formulation of requirements whilst the employee is not on working time.
c)    Guidelines so that the use of technology and information does not affect the right of disconnection. 
d)    Internal complaints procedure regarding non-compliance of the right to disconnection.

•    The Agreement overrides the Ministerial Agreement No. MDT-2020-181 of the 14th of September 2020, which regulated remote work.

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

The Ministry of Labor, through Ministerial Agreement MDT-2021-277 published in the supplement to Official Register 203 of December 6, 2022, established that:

1.      Since January 1st, 2023, the statutory minimum wage of the employee (“SMW”) is set at four hundred and fifty dollars of the United States of America (US$450.00); including the salary of small industry employees, agricultural employees, household employees, maquila employees, microenterprise collaborators and artisans.

2.      The percentage increase SMW of the employee for the year 2023 with respect to the year 2022 is 5.882 % (applicable for fixing sectorial minimum wages).

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

Specialist in Corporate Law
Mario Fernández, senior associate at CorralRosales
mfernandez@corralrosales.com
+593 2 2544144

Specialist in Corporate Law
Milton Carrera, senior associate at CorralRosales
mcarrera@corralrosales.com
+593 2 2544144

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144

On March 18^th, the Ministry of Labor – by Ministerial Agreement MDT-2021-087- set the living wage for 2021 and established the payment procedure.

• Living wage

The value of the monthly living wage for 2021 was set at US$447.41.

• Economic compensation calculation period

To calculate the economic compensation of the living wage, employer shall consider income received by the employee from January 1^st to December 31^st, 2021.

If employees worked for a shorter period than the aforementioned, calculation will be proportional to the time worked.

• Procedure to calculate economic compensation

The economic compensation to which workers whose monthly income is not less than the living wage are entitled, is the difference between the living wage for the year 2021 and the monthly income that the worker received during 2021.

To calculate employee´s monthly income, the following amounts received during the calculation period must be added and divided by 12:

• Salary
• Thirteenth remuneration
• Fourteenth remuneration
• Commissions or incentives paid by the employer.
• Profit sharing
• Additional benefits paid in cash by the employer
• Reserve funds

In the case of part-time employees, economic compensation will be calculated proportionally to the hours worked. The ordinary workday is 240 hours per month.

• Payment deadline

The economic compensation shall be paid until March 31, 2022.

• Registration before the Ministry of Labor

Once the employer registers the labor profit sharing form of year 2021, the Ministry of Labor’s platform will generate the payroll of the employees entitled to the economic compensation to reach the living wage.

Specialist in Labor Law
Edmundo Ramos, partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144