Venezuela
Knowledge Base
Frequently asked question, important data and information on EOR.
General information
$ 130 VEF per month
Labor Law
Laws that regulate Labor Relationship
• National Assembly or the National Executive Branch.
• Organic Labor Law (OLL)
Onboarding guide
Requirements for a labor contract
• Working hours
• Overtime
• Wages
• Vacation
• Sick leave & pay
• Maternity / Parental leave & pay
Pre-hire Medical exam
Yes. The law is Lopcymat (Organic Law on working conditions and environment) establishes the employer’s obligation to carry out a pre-employment medical examination. This includes complete hematology, urine, and occupational medical consultation
Types of contracts
• Indefinite
• Fixed-term contract
• For specific work
Probation Period
Probation period is up to 90 days
Article 30, Regulation of the organic labor law
Are offer letters mandatory in the country?
Not Mandatory
Are digital signatures in labor contracts valid?
Permitted
Mandatory onboarding documents
• Identity Card
• ARI
• Payroll Deposit Authorization
• Copy of the Studies Title
• Copy of CV or Resume
• Copy of RIF
Statutory benefits
Annual Bonus
Every company must pay its employees a monthly salary for each year worked, or if the relationship is less than one year, the payment will be proportional to the time the worker has worked.
Article 132, OLL.
Additional bonus
Doesn’t apply
Leaves (medical, maternity, paternity, etc.)
• Maternity rights: Pregnant employees are entitled to take six weeks’ leave before giving birth and 20 weeks’ leave after giving birth (Article 336, New OLL). During this period, pregnant employees receive 66.66% of their monthly salary from social security. In any case, the amount cannot exceed five times the minimum salary. Employers can also pay employees, and then deduct the payment from the social security bill.
• Paternity rights: A father is entitled to paid paternity leave from the social security system of 14 continuous days from the date of birth.
• Adoption rights: A foster mother who adopts a child that is under three years of age has the right to 26 weeks maternity leave, from the date of the family placement. The foster mother is also entitled to enjoy indemnification (paid by social security) for her living maintenance and that of her child, and is protected against dismissal for two years from the family placement. Foster fathers of children under three years of age are protected from dismissal for up to two years after the family placement (Article 339, New OLL). Foster fathers of children under three years of age can take paid paternity leave for 14 continuous days from the family placement.
• Parental rights: Parents are entitled to one paid day of leave per month when their children are sick, for the first year after their birth (Article 15, Organic Law on Prevention, Conditions and Health Environment at the Workplace Regulations).
• Carers rights: The New OLL includes leave for the care of the spouse, ascendants, and descendants up to the first degree of consanguinity, if required and for a time agreed by the employee and employer. Carers’ rights are usually contractual and are set out in collective bargaining agreements or internal policies.
Annual Leave (days per year)
When the employee completes one year of uninterrupted work, he/she will enjoy a paid vacation period of fifteen working days. Additionally, for each year of works he/she will get one day of vacation, up to 30 days in total for join his/her vacations. The payment of this days is based on the salary of the previous month to the join time.
How do vacation days expire?
Vacations are compensated in money due to the termination of the employment contract without having enjoyed them.
Official Holidays
• Jan 1, New Year
• Feb 20, Carnival
• Feb 21, Carnival
• Apr 6, Holy Thursday
• Apr 7, Good Friday
• Apr 19, Declaration of Independence
• May 1, Labor Day
• Jun 24, Battle of Carabobo
• Jul 5, Independence Day
• Jul 24, Simón Bolívar
• Oct 12, Day of indigenous
• Dec 24, Christmas Eve
• Dec 25, Christmas
• Dec 31, New Year’s Eve
Working on holidays and Sundays
Paid at 50% on top of the regular wage
Number of Working hours
8 hours a day, 40 hours a week, which must be worked in a period of five days with two continuous and mandatory rest days per week.
The daily workday is limited to 7 hours and the weekly workday to 35 hours and must be compensated with a surcharge of 30% over the salary agreed for the daytime workday.
•Day Shift 5:00 am– 7:00 PM. Maximum 40 hours a week.
•Night Shift 7:00 PM – 5:00 am. Paid 35% on day value. Maximum 35 hours a week.
•Mixed Shift: Includes hours in the night and day shifts, always that the night hours be less than 4. Otherwise it is considered a night shift. Maximum 37.5 hours a week.
Overtime
Paid at 50% on top of the regular wage
Social Security (what does it cover)
• Maternity
• Old age
• Survivorship
• Sickness
• Accidents
• Disability
• Death
• Retirement and unemployment or forced unemployment.
Payroll
Salary payment currency
Bolívar (VES), but some employers like to pay in dollars.
Can salary be paid in a different currency other than the local currency?
Permitted
Payment frequency
•Monthly
•Bi-weekly
VAT percentage
16.00% standard
Income Tax
Residents and non-residents are taxed at progressive income tax rates ranging from 0% to 34%. For more information see https://taxsummaries.pwc.com/venezuela/individual/taxes-on-personal-income
Tax Payer Identification Number
Single Tax Information Registry – RUF (Registro Único de Información Fiscal)
Offboarding
Voluntary resignation
This is when the employee resigns voluntarily and for reasons not attributable to the employer. In this case, there is no severance payment, but there is a payment of outstanding benefits. In addition, the employee must give prior notice to the employer of his resignation, based on the following ranges:
• More than one month and up to six months worked, 7 days notice
• More than six months and up to one year worked, 15 days notice
• More than one year worked, 30 days notice
Article 81, OLL.
Contract termination
The employment relationship may end due to:
• Dismissal
• Retirement
• Common will of the parties
• Causes beyond their control (e.g. dead, fortuitous events, etc)
Justified Dismissal
No severance pays in case of dismissal with just cause, which corresponds to the following causes:
• Lack of probity or immoral conduct at work.
• De facto proceedings, except in legitimate defense.
• Insult or serious lack of respect and consideration due to the employer, to their representatives or to members of his family who live with him or her.
• Intentional act or gross negligence that affects occupational health and safety.
• Omissions or imprudence that seriously affect safety or hygiene at work.
• Unjustified absence from work for three business days in a period of one month, which is It will count from the first absence.
• Material damage caused intentionally or with gross negligence in the machines, tools and work tools, furniture of the work entity, raw materials or products elaborated or in processing, plantations and other belongings.
• Disclosure of manufacturing, manufacturing or procedure secrets.
• Serious breach of the obligations imposed by the employment relationship.
• Abandonment of work.
• Labor harassment or sexual harassment.
Article 79, OLL.
Unjustified Dismissal
Is not possible under immunity decree, except for workers with less than one month tenure, employees in managerial position and seasonal and occasional workers).
The worker may appear before the Judge of Stability when do not agree with the cause alleged by the employer for the dismissal, in the period of five (5) business days counted from the date of dismissal, to demand that it be qualified as unjustified and, consequently, their reinstatement and payment of unpaid wages be ordered to perceive.
Workers unjustifiably dismissed have the right to request their reinstatement and also a seniority indemnity equivalent to 30 days’ wages per year of service or fraction exceeding six months, up to a maximum of one hundred- and fifty-days’ wages.
Compensation due to the termination of the employment relationship, will be the last salary earned, calculated in such a way that it integrates all salary items received by the worker or worker.
Article 122, OLL.
Minimum Notice Period
The law do not mention anything about notification period for dismissals, but is encouraged to stablish it into the contract clauses. For resignation times, see Voluntary resignation.
Immigration
Visa process
The applicant must complete the application and the required documents.
Visa documents
• Application form for admission.
• Photocopy of the Passport with 6 months of validity, where the data of the applicant appears.
• Labor authorization or its exoneration issued by the Ministry of the Popular Power of Labor and Social Security (Simón Bolívar Center, North Tower, 2nd floor).
• Submit an original notarized power of attorney or certified copy thereof, granted by the Representative of the company to the person authorized to carry out the procedure before the SAIME, for verification purposes.
• Once the SAIME authorization has been obtained, the authorized person must pick up the Visa at the Venezuelan Embassy or Consulate abroad.
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