Nicaragua

Employment Contracts

Employment contracts can either be written or verbal. The two copies of signed written employment contracts are sent to the Ministry of Labor for authorization and certification. One copy is given to the employer at a later date.

Verbal employment contracts are permitted for fieldwork, domestic service, and temporary or seasonal tasks of a maximum of 10 days. Employers must provide employees with a certificate containing the start date, type of work to be performed, and the wages, within 3 days of service. This is necessary and adequate to prove the employment relationship.

Employment contracts can be for a fixed term or indefinite term.

Public Holidays

• New Year’s Day
• Holy Thursday
• Good Friday
• Labor Day
• Liberation Day
• The Battle of San Jacinto
• Independence Day
• Immaculate Conception
• Christmas Day

Compensation

Employees receive a 13th month bonus each year.

Working Hours

The standard work period is 48 hours per week and eight hours a day for work performed during the day, which is between 6 a.m. and 8 p.m. Work performed at night, which is between the hours of 8 p.m. to 6 a.m. cannot exceed 42 hours a week or seven hours a day. Mixed day and night work are limited to 45 hours per week and seven and a half hours a day. A mixed workday with more than three and a half nighttime hours is considered nighttime work. Work that is classified as dangerous or unhealthy by the Ministry of Labor cannot exceed six hours a day.

Employees receive one rest day after six days of continuous service. This is generally on Sunday but there are exceptions. Employees are also entitled to a half-hour rest period during the workday, which is counted as effective work time.

Overtime work can be performed for a maximum of nine hours a week with a maximum of three hours a day and is paid at 100% above the standard rate. Employees who work on a rest day or public holidays receive 100% above the standard rate as well.

Female employees who are pregnant for six months and more cannot perform nighttime work.

Vacation Leave

Employees receive 15 calendar days of annual leave for every six months of tenure.

Sick Leave

Employees receive up to 52 weeks of sick leave. Benefits are paid through Nicaragua’s social security system. Employees who have made at least eight weeks of contributions in the last 22 weeks before taking leave are paid 60% of their average weekly earnings over the last eight weeks, after a three-day waiting period.

Maternity / Paternity Leave

Female employees are entitled to 12 weeks of maternity leave for the birth of a single child, or 14 weeks for multiple births. Four weeks of leave is taken before the due date and eight weeks is taken after the birth of the child, or 10 weeks for multiple births. When delivery occurs before the due date, the missing period can be added to the postnatal period. During this time, 60% of the salary will be paid by social security and the employer pays the remaining 40%.

Female employees who have made a minimum of 16 weeks of social security contributions out of the 39 weeks immediately preceding the childbirth, receive maternity leave benefits for 12 weeks at 100% of the average weekly income eight weeks before childbirth. If an employee is not covered by social security, then the employer must pay the full entitlement.

Employment Termination/Severance

Employment contracts may be terminated at the end of the contract (if for a fixed term), by mutual consent, by the employer or by the employee. Employers must pay any bonuses, accrued but unused vacation and salary on a prorated basis upon separation.

Employers may terminate an employee during the probation period without notice or paying severance. The probation period cannot exceed 30 days.

Employers may terminate an employee without notice or severance liability for serious dishonesty, threatening or physically harming an employer or co-worker, misconduct that damages the employer’s reputation or finances, or a violation of employer rules and regulations that causes serious damage to the employer.

If the employer terminates the contract without cause, the employee is entitled to severance pay. The severance pay cannot be less than one month or exceed five months of wages.

Employees can terminate an employment contract by providing written notice of 15 days in advance.

Health Insurance Benefits

Healthcare in Nicaragua involves the collaboration of private and public institutions.