Venezuela Employer of Record
Country Overview Video
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The Bolivarian Republic of Venezuela is a South American country with Spanish as its official language. Santiago Leon de Caracas – more commonly known as Caracas – is the nation’s capital and most populous city, as well as its center of industry and tourism. The country currently experiences hyperinflation at an estimated rate of over 2,000% and basic consumer goods shortages are common. Government revenues are highly dependent on oil exports, of which it has the world’s largest known reserves. An unstable political, economic and regulatory climate has led some multinationals to cease or reduce operations in the country.
Employment Contracts
Employments contracts can be either in verbal or written format, fixed- or indefinite-term. It is advisable to have all contracts in writing. A written contract will contain the following specifications:
- Identification of the parties
- The date the employee will begin work
- Description of the position
- Duration (if for a fixed-term)
- Working hours and details
- Base salary and any other allowances the employee will receive
- Workplace
- Any other terms or conditions of employment
There is no statutory probation period in Venezuela. However, an employer can dismiss an employee with no justification during the first 30 days of services, which is generally considered the acceptable probationary period.
Public Holidays
The following days are established holidays in Venezuela:
- Sundays
- Jan. 1, Monday and Tuesday of Carnival, Holy Thursday, and Good Friday
- National Feast Days
- Holidays declared by the National Government, states, or municipalities (up to a total of three per year)
National Feasts as follows:
- Declaration of Independence
- Battle of Carabobo
- Independence Day
- Simon Bolivar’s Birthday
- Indigenous Resistance Day
Compensation
Employees are entitled to a seniority bonus any may receive other types of bonuses as part of their compensation package. Individual or collective bargaining agreements may specify the terms of any bonuses to employees.
Working Hours
The standard work period is generally eight hours a day and 40 hours a week, over five days. Work hours are reduced for employees that perform work at night. Employees are entitled to two days of rest per week. Overtime is allowed, with permission, but cannot exceed two hours a day, 10 hours a week and 100 hour a year. Employees are entitled to extra pay for working overtime hours.
Vacation Leave
In addition to public holidays, employees are entitled to 15 working days of paid annual leave after 12 months of uninterrupted service and an additional day for every completed year of service up to 30 working days a year.
Sick Leave
Employees receive three days of sick leave that are paid by the employer, and from the fourth day, the employees receive 66.7% of their salary up to 52 weeks from social security.
Maternity / Paternity Leave
Female employees are entitled to 26 weeks of maternity leave for the birth of a child. Up to six weeks of maternity leave can be taken before the birth, with the remaining taken after the child is born.
Fathers can take up to 14 days of leave after the birth of a child. This leave can be extended if the mother is ill or dies, the child is ill or for the birth of twins or multiples.
Employment Termination / Severance
Employees are entitled to job security in Venezuela. Employee dismissals must be submitted to the appropriate labor judge to determine the legality of the termination. Dismissal without cause required notice of between one week and one month depending on the employee’s length of service. Special rules also apply to redundancy dismissals.
Health Insurance Benefits
Venezuela provides a universal social security system.
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Expandopedia team and consultants, to ensure information up-to-date and accurate.
Partnering with Elements Global Services when expanding into Venezuela, can dramatically reduce the standard brick and mortar processes of doing business in foreign markets and allow you to focus on what you do best, growing your company! To discover more about how Elements can simplify your ability to expand globally, please feel free to contact us.
Other Solutions To Simplify Global Expansion:
- Value Add of EOR Services
- Administrative Services Outsourcing (ASO) Solutions
- Business Process Outsourcing (BPO) Solutions
- Entity Formation & Management Services
- Business Consulting Services