LABOR AND EMPLOYMENT LEGAL ASSISTANCE IN PERU

Types of Employment Contracts under Peruvian Law

Under Peruvian labor legislation, employment relationships can be established through different types of contracts depending on the nature and duration of the work. Each contract must be formalized in writing and registered with the Ministry of Labor. Our firm provides legal assistance in drafting, reviewing, and negotiating all forms of employment agreements to ensure compliance and minimize future disputes.

Indefinite-Term Employment Contracts

This is the standard form of employment in Peru. It does not have a defined duration and is presumed to be indefinite unless proven otherwise. The employer must justify the use of any fixed-term contract; otherwise, the employment relationship is deemed indefinite by law.

Fixed-Term Employment Contracts

Peruvian law allows temporary contracts only for justified reasons, such as specific projects, seasonal activities, or temporary replacements. The total duration cannot exceed five years, and renewals must comply with legal formalities to avoid conversion into indefinite employment.

Part-Time Employment Contracts

Part-time contracts are valid when the employee works less than four hours per day on average. Although they are exempt from certain benefits (like compensation for time of service), they must still be registered and comply with minimum wage and occupational safety standards.

Maximum Working Hours and Overtime Regulations

The regular working day in Peru cannot exceed eight hours per day or forty-eight hours per week. Employers must properly record working hours and overtime to comply with labor regulations and avoid administrative sanctions. The employer has the authority to determine the daily and weekly work schedule, as long as it does not exceed the legal maximum working hours. This means thee employer may organize shifts, breaks, and distribution of working hours based on the company’s operational needs.

Overtime Compensation

Employees working beyond the legal limit are entitled to a 25% surcharge for the first two extra hours and 35% for subsequent hours, unless compensated with equivalent rest time. Our firm helps employers design internal policies and agreements that meet these standards while maintaining flexibility.

Night Work and Special Schedules

Night work (from 10:00 p.m. to 6:00 a.m.) must include additional compensation to ensure total earnings meet the minimum legal wage. Certain sectors such as mining, hospitality, or health services may adopt special schedules subject to approval by the labor authority.

Legal Compliance and Termination Procedures

Peruvian labor law requires that any termination be based on legal grounds and that employees receive proper notice and severance. Our team ensures that dismissals, resignations, and collective terminations comply with due process to avoid litigation or administrative penalties.

Termination for Just Cause

Employers may terminate for disciplinary reasons such as misconduct, breach of trust, or poor performance, but must respect procedural safeguards and provide documented evidence.

Severance Pay and Legal Benefits

Unjustified termination entitles the employee to compensation equivalent to 1.5 monthly salaries per year of service, up to a maximum of 12 months. Additional benefits include unused vacation, CTS (Compensación por Tiempo de Servicios), and pending bonuses.

Why Choose Our Firm for Labor and Employment Law in Peru

Our legal team advises both Peruvian and foreign employers on structuring compliant labor relationships, preventing disputes, and ensuring alignment with the latest regulations issued by the Ministry of Labor. We also assist in audits, collective bargaining, and migration-related employment issues.