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The business law resource for Latin America
Select specific jurisdictions to filter on. Alternatively select no jurisdictions and select questions below to see all jurisdiction answers for them.
Select specific questions to filter on. Alternatively select no questions and select jurisdictions above to see all question answers for them.
May foreign employers hire employees directly in your jurisdiction or is it necessary to act through a local subsidiary? Are secondments or loans of personnel lawful? Can this trigger a permanent establishment of the foreign company in your jurisdiction?
Is there a limit to the number (or ratio) of foreign employees an employer may have in your jurisdiction?
May labour or employment agreements, and the termination of those agreements, be subject to any legislation other than that of your jurisdiction?
What are the requirements for an enforceable agreement? Are there any formalities that labour or employment agreements must adopt to be enforceable in your jurisdiction? Are fees, duties or taxes generated by any of them?
What are the implications of hiring personnel without a clear, written, employment agreement in place? Can this have any effect in the event of litigation or have a bearing on social security or tax issues?
What are the employers’ obligations (social security and related benefits) regarding employees after contracting? Are any social benefits tax deductible? Are these applicable to foreign employees?
What benefits, other than cash remuneration are employees in your jurisdiction entitled to? What severance entitlements may employees claim?
What is the role of the unions in the relationship with foreign employers and employees?
Do employees have the right to form unions? Is it mandatory for employers to honour this?
May unions be an independent party to a labour controversy in your jurisdiction? What are their rights and duties towards the employer and unionised employees?
May a union request, bring about or cause a stoppage? If so, in what cases and what remedies would be available to the employer?
Which legislation governs the enforcement of international relationships or labour agreements provided for in international business contracts, and in international commercial proceedings, to be performed within your jurisdiction?
Which international treaties or conventions are applicable to labour or employment relations in your jurisdiction? Has your country made any reservations to or denounced any treaties of the International Labour Organization?
Are arbitration agreements to resolve labour or employment disputes valid and enforceable in your jurisdiction? Is there any legislation in your jurisdiction governing the private arbitrability of labour or employment disputes? May controversies in labour or employment matters in your jurisdiction be resolved through private arbitration (in your jurisdiction or abroad), or in foreign courts?
Are mediation mechanisms available and legally enforceable in your jurisdiction? Do conciliation fora exist in your jurisdiction and is conciliation mandatory before litigation? Is conciliation conducted by labour boards or courts or by an independent body?
Does the law in your country require that labour or employment proceedings be held in a specific jurisdiction or place or require that proceedings be carried out in a specific language?
Is there a concept in your jurisdiction providing for class-lawsuit in labour or employment matters? Does your law allow the consolidation of multiple labour or employment proceedings? Are human rights related grievances admissible in labour and employment proceedings?
Can foreign lawyers serve as counsel in labour or employment proceedings in your jurisdiction? If so, can they do so alone or must a local lawyer serve as co-counsel? Are their fees subject to local taxation?
Are labour or employment awards issued by foreign courts or arbitration courts recognised and enforced in your jurisdiction?
May labour courts or boards grant interim relief? If so, how is that relief enforced? Does it apply to assets located abroad? Are these valid against unions?
Can labour courts or boards issue orders, subpoenas or use other legal processes to compel the production of evidence by a third party or compel a third-party witness to appear before them? If so, will a court of law lend its aid in enforcing such an order against a recalcitrant third party?
Can a party to a labour proceeding seek relief from the court or board? What is the scope of such relief?
Are the resolutions issued by a labour court or board final? What are the remedies available for the parties?
What are the grounds for challenging an award and what is the period of time a party has to challenge that award?
If a party files a lawsuit in violation of an agreement to arbitrate, will a petition by the defendant to remit the lawsuit to arbitration be granted by the labour courts or boards in normal circumstances or is the right to sue not waivable? If so, will that petition be treated as a threshold matter or will it be rolled into the merits of the litigation such that the defendant will also need to defend the merits of the lawsuit in court?
Does the law provide that post-award interest accrues on an unpaid award?
Can a foreign award be enforced if the award has been set aside by the courts?
Are employment agreements for definite periods or seasonal jobs valid?
Does the law allow probationary or initial training periods? If so, how long may they last?
Are employees hired under any of the foregoing modalities entitled to all labour benefits and social security?
Is outsourcing lawful? Are there special rules or penalties associated with it?
Are there mandatory profit-share provisions in your jurisdiction?
Are restrictive covenants, such as non-compete and non-solicitation undertakings lawful and enforceable?
Outline any provisions in your jurisdiction’s law for the gig economy.
In brief, what advice do you have with respect to labour or employment relationships and agreements for a foreign lawyer advising a foreign client contemplating entering into a business deal with a company from your jurisdiction? What are the red flags?
Jorge G De Presno A
Basham, Ringe y Correa, S.C.
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