Even if your company has a strong and qualified HR department, there will be situations where you need external legal advice. Complex legislation regulates the Peruvian labor market, and in addition, many Peruvian companies are covered by collective agreements. This may create challenges for you as a manager or employer when you need to ensure that your company complies with the most recent legislation governing employment and labor law. Therefore, it can be a good investment to receive legal advice from a lawyer with expertise in employment and labor law
Types of Employment contract
- Indefinite or indefinite term contract: this type of contract has a start date but not an end date, with the understanding that it can last in time until a just cause is produced that warrants the dismissal of the worker. It can be held verbally or in writing. Therefore, no written contract is necessary, but to ensure that he or she is registered in the company’s payroll to receive all the benefits that the Peruvian labor system offers by law. El trabajador bajo este tipo de contrato va a gozar de todos los beneficios laborales que brinda la ley: asignación familiar, compensación por tiempo de servicios, gratificaciones, vacaciones, entre otros.
- Fixed or specific term contract: also called Subject to Modality. It is one where the provision of services is given for a specified time and is held for a specific need. The maximum duration may not exceed 5 years. If this period is exceeded, the worker becomes indeterminate. This type of contract must be entered into in writing and must be registered with the Ministry of Labor and Employment Promotion within 15 calendar days of its conclusion. The contract must specify the specific cause of hiring and set a start and end date.