/ Published in Labor Law_news, Maria Teresa Mendoza, News

Increase in fines for employers hiring foreign personnel without valid work permit

This Law modifies the fines that the Ministry of Labor may impose to employers that hire foreign personnel without having a valid work permit, and the employment of minors, without complying with the requirements established in the law.

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The fines that the Ministry of Labor may apply when foreign personnel is detected without a Work Permit, will be the following:

  • The first time, a US$500.00 fine will be imposed, for each foreign employee without a work permit.
  • The second time, a US$1000 fine will be imposed, for each foreign employee without a work permit.
  • The third time, a US$10,000 fine will be imposed, regardless of the number of foreign employees without work permit   In this case, the Ministry of Labor will also request the Ministry of Commerce and Industries the temporary suspension the Commercial License (Aviso de Operaciones) of the companies or commercial establishments.
  • The fourth time, the Ministry of Labor is authorized to request the Ministry of Commerce and Industries for definite cancellation of the Commercial License (Aviso de Operaciones) of the companies or commercial establishments.  This action applies notwithstanding the immediate dismissal of all non-authorized foreign personnel, and the obligation of the employer to consign the corresponding payment of the imposed fine, at the Conciliation Cashier in the offices of the Ministry of Labor or delivering it directly to the employee.
  • In the case of companies that have 10 or more foreign employees without Work Permit, the amount of the fines will be doubled. The names of these companies will be published in the website of the Ministry of Labor.
  • Article 20-A is added to the Labor Code, which establishes the procedure to be followed by the Ministry of Labor for the sanctions.

In addition, Law 59 also modifies article 125 of the Labor Code which establishes the fines for hiring minors in contravention to the law, and sets the fine on US$700.00 for each minor working without the corresponding requirements.

This law will be in effect from its promulgation, on September 14th, 2017