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Guatemala

How to Hire Workers in Guatemala | Employer of Record (EOR) in Guatemala

Navigating Guatemala's labor laws and regulations is seamless with TCWGlobal's Employer of Record (EOR) services. We handle all employment aspects, including payroll and benefits, ensuring compliance and efficiency. Our dedicated team provides support tailored to your business needs in Guatemala. Expand into the Guatemalan market with confidence, knowing TCWGlobal is your trusted partner for employment management.

 

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Guatemala offers vast opportunities for businesses seeking global expansion with its growing economy. TCWGlobal's Employer of Record (EOR) services in Guatemala streamline hiring and workforce management, ensuring compliance with local labor laws. With a population of over 17 million, Guatemala has a diverse and industrious labor force. Our EOR services include payroll management, benefits administration, and comprehensive HR support, tailored to your business needs. Partner with TCWGlobal to confidently grow your business in Guatemala, leveraging our expertise in local employment laws and efficient workforce management.
Worker Classifications

Guatemala does not have different Worker classifications outside of fixed-term and indefinite contracts.

Fixed-Term Contracts

Fixed-term contracts in Guatemala have limited use. Fixed-term contracts may last a maximum of 90 days and intend to be used for circumstances such as Workers being out due to vacation, disability, or extended leave. These contracts may also be used for short term projects.

Probationary Periods

In Guatemala, the duration of a Worker’s probationary period is strictly limited to 60 days. During the probationary period, the Worker is entitled to the same rights and benefits as any other Worker. Terminating a Worker during the probationary period still requires at least 3 days of notice before the end of the period. If a Worker continues to work past the probationary period, they are automatically converted to an indefinite contract.

Holidays

There are seven public holidays in Guatemala. Public holidays are considered paid days off. All work that is performed on a public holiday must be compensated at 200% of the Worker's usual wage.
 
 

Vacation

Workers in Guatemala receive 15 days of vacation once they have completed one year of service. Annual leave may be rolled over year to year up to 15 days.
 
 

Sick Leave

In Guatemala, Workers how much sick leave Workers are entitled to is related to long they have been in service. Workers may take leave for up to six months paid by the Guatemalan Institute of Social Security. If a Worker has been working 2-6 months, they may receive one month of paid sick leave. Workers who have been in service from 6-9 months receive up to two months of paid sick leave. Lastly, Workers who are engaged over 9 months receive up to three months of paid sick leave.

Working Hours

Working hours in Guatemala are generally 40 hours per week between Monday and Friday.
 
 

Overtime

Overtime in Guatemala is any time worked over 40 hours in one week. Overtime must be compensated at 150% of the Worker’s usual wage. Generally, overtime is restricted to a maximum of 2 hours per day. Workers who are scheduled for night shifts also receive a premium of 125% of their usual wage for any overnight hours worked.

Mandatory Bonuses

In Guatemala, workers receive 13th and 14th month salaries that are equal to the average of their past twelve salaries. The 13th and 14th month salaries are paid in July and December.
 
 

Termination

The usual notice period in Guatemala differs depending how long the Worker has been in service. Workers who have been engaged in work for less than 6 months are entitled to one weeks of notice. Workers who have been working more than six months should receive 10 days’ notice. Finally, Workers with more than 1 year of service are entitled to 30 days’ notice. Workers may also be paid in lieu of notice. Indefinite term contract Workers should receive one month’s salary for each year of service or a proportional amount if they have worked less than a year. If a Worker is on a fixed term contract, and the contract ends before the agreed upon date, the Worker is entitled to severance equal to the salary for the remainder of the contract.

Resignation

Workers may resign by providing similar notice as required for termination. If a Worker has worked less than six months, they must give one week of resignation notice. A Worker who has worked more than six months but less than a year must provide ten days of resignation notice. Lastly, if a Worker has worked more than a year, they must give the company 30 days of resignation notice.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.