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Written Agreements

In El Salvador, the Labor Code requires individual labor contracts to be submitted in writing to the General Directorate of Labor within 8 days of signing. The contract must also be provided to the employee within 8 days of the commencement of employment. If the agreement is not made available to the employee, they can contact the General Directorate of Labor to conduct an inquiry into the matter.

The employment contracts must be drafted in Spanish and contain the essential terms enumerated in the Labor Code.

Oral Agreements

The Labor Code of El Salvador allows the use of oral contracts for agricultural workers. In such cases, every 15 days, the employer will be required to extend, at the worker's request, a signed certificate written on common paper which contains:

• The name and surname of both parties
• The time of service
• The salary received in the last 2 weeks.
• The place and date of issue of the document

Non-agricultural contracts must be submitted in writing to the General Directorate of Labor within 8 days of signing and provided to the employee within 8 days of the commencement of employment.

Implied Agreements

There is no provision in the labor law of El Salvador for the use of implied contracts.

Per the Labor Code, the working time in El Salvador cannot exceed 8 hours in a day or 44 hours in a week. All work done over this limit is considered overtime and must be remunerated at 200% the ordinary salary.

If a job requires the completion of dangerous or unhealthy work during the day, working time cannot exceed 7 hours a day or 39 hours a week. For jobs that require the completion of dangerous or unhealthy work during the night, working hours cannot exceed 6 hours a day or 36 hours a week.

Teleworking is strictly voluntary for both the employee and employer and there must be a written agreement between the parties where the terms and conditions are established.

The Labor Code of El Salvador recognizes the following paid public holidays:

• New Year's Day - January 1
• Thursday, Friday, and Saturday of Holy Week - date subject to change annually
• Labor Day - May 1
• Feast of San Salvador - August 6
• August 3 and 5 - holidays in the city of San Salvador
• Independence Day - September 15
• All Souls' Day - November 2
• Christmas - December 25

In El Salvador, the Labor Code provides that an employment contract can stipulate a probationary period of up to 30 days. Either party may terminate the agreement without cause during the probationary period. If the probationary period expires without either party having manifested its will to terminate the contract, it will continue indefinitely unless the parties have set a deadline for its termination. If a new contract is concluded between the same contracting parties within 1 year for the same kind of work, no probationary period can be stipulated in the new agreement.

Notice Period

The Salvadoran Labor Code does not generally require employers to give notice of dismissal to individual employees. However, prior judicial authorization is required for certain collective dismissals, and the authorities may order a notice period in such circumstances.

Severance Benefits

For de facto dismissals (dismissals without cause), workers are entitled to receive compensation equivalent to 30 days' pay for each year of service (or portion thereof) with a minimum severance payment of 15 days' pay. The same severance payment is applicable if an employment contract is terminated because the employer breaches its obligations.

No severance payment is due if the dismissal was for a justified reason, such as employee misrepresentation, misconduct, or insubordination.

Minimum Wage

The labor law of El Salvador guarantees a minimum wage for all employees. The minimum wage rates vary by sector and entered into force on August 1, 2021. The most prominent sectoral minimum wages are:

Textiles and clothing maquila sectors - USD 11.81 (United States dollars) daily, USD 359.16 monthly

Industry, commerce and services sectors, sugar mills, and other agribusiness activities - USD 12.00 daily, USD 365.00 monthly

El Salvador's labor laws do not specify the frequency of wages. Weekly, bi-weekly, or monthly pay is common in different industries.

Overtime, Holiday & Vacation Pay

Per the Labor Code of El Salvador, any overtime work done by the employee must be compensated at 200% of the employee's ordinary hourly salary. Overtime work can only be agreed to occasionally when required by unforeseen, special, or necessary circumstances. The law does not offer provisions requiring a higher overtime rate to be paid for work done during a weekly rest day or public holiday.

In the case of annual leave, employees are entitled to a benefit equal to the ordinary salary plus a 30% surcharge for the duration of the leave. The remuneration for leave must be paid to the employee immediately before its start.

Visas

The types of visas issued in El Salvador include:

• Tourist visas
• Temporary residence visas
• Permanent residence visas
• Multiple entry visas

Work Permits

Foreign nationals who wish to work in El Salvador as specialized workers must obtain an authorization for a temporary residence for the duration of their stay. The employer is required to submit a contract of employment and the length of the worker's stay to the Ministry of the Interior, Ministry of Labor and Social Welfare, and the General Directorate of Direct Contributions. When the contract is terminated, the foreigner will be required to leave and can be expelled from the country in case of non-compliance. The temporary stay of a foreign national can be extended by sending a request 1 month before the expiration of the work permit to the Ministry of the Interior. The total temporary stay cannot exceed 5 years.