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Written Agreements

In Guatemala, an individual work contract may be verbal when it refers to agricultural or livestock work, domestic service, temporary or incidental work not exceeding 60 days whose value does not exceed GTQ 100 (Guatemalan quetzales). In all other cases, the contract of employment must be in writing and must contain information on identity of parties, duration of agreement, working hours, salary and benefits, nature of work ,etc.

Oral Agreements

Per the Labor Code of Guatemala, an individual work contract may be verbal when it refers to agricultural or livestock work, domestic service, temporary or incidental work not exceeding 60 days. Oral contracts may also be used to serve as agreements for specific jobs with the value that does not exceed GTQ 100 (Guatemalan quetzales).

In the case of an oral contract, at the time of recruitment, the employer must present the employee with a card or form stating the start date of employment and the salary. At the end of each pay period, the employer must also give the employee a card indicating the number of days worked and the work completed.

Implied Agreements

The Labor Code of Guatemala does not offer provisions on implied contracts. It mandates the use of written contracts, except in case of certain temporary contracts not exceeding 60 days where verbal contracts can be used.

Per the labor law, regular working hours are 8 per day and 44 per week (the standard workweek is six days). In case of mixed work day (day and night work), working hours cannot exceed 7 hours per day and 42 hours per week. In case of night work, working hours cannot exceed 6 hours a day or 36 hours a week.

The total working hours, including overtime, may not exceed 12 hours daily. Employees who work beyond the standard working hours are entitled to overtime pay at 150% of the regular hourly rate. Work performed beyond the limits provided by the contract between the parties is also considered overtime work and must be remunerated as such.

• New Year’s Day - January 1
• Holy Thursday, Friday, and Saturday
• Labor Day - May 1
• Mother’s Day - May 10 (private companies)
• Army Day - June 30
• Independence Day - September 15
• Revolution Day - October 20
• All Saints Day - November 1
• Christmas Eve - December 24 (half-day, after 12:00 p.m.)
• Christmas Day - December
• New Year’s Eve - December 31 (half-day after 12:00 p.m.)

According to the Labor Code, for contracts of indefinite duration, the first 2 months are considered a probationary period (although the parties can mutually agree to a shorter probation). During this period, either party can terminate the employment contract with or without cause, without any responsibility on their part. A probationary period cannot be extended.

Notice Period

In Guatemala, the length of a statutory notice period for termination of an indefinite contract is based on the employee's duration of service.

• 1-week notice for service under 6 months
• 10 days' notice for more than 6 but less than 12 months of service
• 2 weeks' notice for more than 1 year but less than 5 years of service
• 1-month notice for 5 or more years of service

The notice period listed above applies to workers who wish to terminate a contract for an indefinite period without just cause once the trial period has elapsed. These notice periods are not binding on employers and are superseded by a notice period stipulated in an employment contract. If an employer has to terminate an employee due to just cause or misconduct, a written dismissal notice must be provided to the employee before termination.

Severance Benefits

The Labor Code stipulates that an employee dismissed for just cause is not entitled to severance pay. The employer has the burden of proving that the dismissal was justified. Employees dismissed without cause or indirectly are entitled to severance pay equal to 1 month of salary per year of service. Severance must be paid proportionally when the employee works for a part of a year. Employees are not eligible for a severance payment if dismissed during a probationary period.

Minimum Wage

The minimum wages in Guatemala, effective from January 1, 2024, are as follows (all values in Guatemalan quetzales, GTQ):

Non-Agricultural Economic Sector

Daily: GTQ 122.40; Monthly: GTQ 3,723.05; Incentive Bonus: GTQ 250; Total Salary: GTQ 3,973.05

Agricultural

Daily: GTQ 118.14; Monthly: GTQ 3,593.55; Incentive Bonus: GTQ 250; Total Salary: GTQ 3,843.55

Exporter andMaquila

Daily: GTQ 107.79; Monthly: GTQ 3,278.59; Incentive Bonus: GTQ 250; Total Salary: GTQ 3,528.59

Guatemala's employment law does not mandate a specific payroll cycle. However, it requires employment contracts to specify whether the pay frequency is monthly, bi-weekly, or daily.

Overtime, Holiday & Vacation Pay

An employee who works beyond the standard working hours (8 hours a day and 44 a week) is entitled to overtime pay at 150% of the regular hourly rate.

Hours of work on a weekly rest day and public holiday are considered overtime work and are compensated at a premium rate of 150% of the regular hourly wage rate, which is the total amount of the ordinary and extraordinary payments of the last week or the last 15 or 30 days, depending on whether wages are paid by biweekly or monthly. The law does not require employers to provide a compensatory rest day to employees who work on weekly rest days or public holidays.

Payment for annual leave must be issued to employees prior to its commencement.

Visas

• Business visa - issued to foreigners who will act individually or in duly accredited representation of foreign entities of a lucrative nature, who will travel for lawful business purposes.
• Student visa - students must provide proof of studies in officially recognized educational centers. A visa is valid for 365 days and is eligible for extension upon demonstrated evidence of continuity of studies. Extensions are provided by the General Directorate of Migration.
• Tourist visa - issued to foreign nationals who enter Guatemala for recreational purposes not exceeding 90 days, extendable for the same time only once. It can be issued for single or multiple entry.
• Diplomatic visa - issued to diplomatic agents and other foreigners holding a diplomatic passport, issued by their respective Government or International Organization.

Work Permits

A foreign national who wishes to work in Guatemala is required to obtain both a work permit and a residence permit. Most non-immigrant visas for temporary workers offer renewal periods. The initial stay can be 2 or 3 years, depending on the type of work, and can usually be renewed once. The work permit is valid for renewable periods of 1 year. A request for an extension must be filed 15 days before the expiration of the period for which the work permit is issued.