Hire in El Salvador

An employment contract must include the following information:

• date and location of the contract
• identification of the parties, including the employee’s gender, marital status, nationality and date of birth
• nature of the job
• location of the work
• salary and payment terms
• working hours
• term of the contract, among other items

The probation period cannot exceed 30 days for contracts of indefinite duration. During this period, either party may terminate the contract without cause.

The standard working schedule entails eight hours of work per day and 44 hours per week. All employees are guaranteed 24 consecutive hours of rest per week. Sunday is the designated weekly rest day as per Labor Law. Additionally, employees are allowed 30-minute rest breaks during their working hours for both rest and meals. These are considered part of their working time.

In certain situations, employees may need to work extra hours beyond their regular schedule due to unexpected or important circumstances. If an employee works more than the standard eight hours per day or 44 hours per week, they are entitled to receive double their normal wage rate for each overtime hour worked.

Overtime pay rate can only be agreed on an occasional basis. Daytime overtime must be paid at double the ordinary rate per Article 169 of the Labor Code. Nightshift overtime must be paid at double the ordinary rate plus 25% per article 168 of the Labor Code.

According to the Labor Code in El Salvador, employees should receive Christmas bonuses from the 12th to the 20th of December each year. The amount of bonus pay depends on how long the employee has worked. Those who have worked for one to three years are entitled to 15 days’ worth of wages. Those with three to 10 years are entitled to 19 days’ pay. Employees who have been with the company for ten or more years receive 21 days’ pay for their bonus.

An employee will not receive annual bonus if they have two unexcused absences from work within a two-month period in the 12 months leading up to the bonus being given.

The Labor Code requires employers to give termination notice or pay in lieu of notice. When the work performed exceeds two weeks, seven days’ written notice is required.

The employment contract expires due to mutual consent, resignation of the employee, death of the employee, expiration of the term agreed upon in the contract, completion of the job or work for which the employee was recruited or force majeure. The employer may also cancel the employment contract due to the company’s economic needs.

Justified grounds for dismissal are primarily concerned with the worker’s conduct and capacity. Employers have the legal right to terminate (without notice) a contract for various reasons. These include incompetence in the execution of work, frequent absences or tardiness, a lack of discipline at work, intoxication or other types of inappropriate behavior at work and disrespect toward an employer or a fellow employee, among others.

Under the Labor Code, employees can be dismissed with or without justification. If terminated for a valid reason, severance pay is not required. Conversely, if an employee is dismissed without cause, they are entitled to severance. This payment is equivalent to one month’s salary per year of service (or at least 15 days’ pay). They also receive proportional vacation and end-of-year bonus payments.

For employees on fixed-term contracts, if they are terminated without a valid reason before the contract’s end, the employer must provide compensation for the wages that would have been earned until the contract was scheduled to end.

Fixed-term employment contracts are often for a period of days, weeks or months. The duration is ordinarily for no more than one year. However, they can be extended for up to two years if the employee holds a professional or technical qualification, or if the task at hand requires such a contract duration.

Such contracts must clearly explain the duties that will be performed and include explicit reference to the conditions under which employment can be terminated. This includes how the designated task will be regarded as complete.

The Labor Code requires that employees receive their full wages in legal tender, either directly at the workplace or at another agreed-upon location and on time. Payment in the form of alcoholic beverages is not permitted. Salaries may be paid weekly, biweekly or monthly. Remuneration should generally be disbursed within two days after the end of the pay period.

An employer is required to give a payslip to each employee on each pay day. The payslip should show the computation of earnings and items. It should list ordinary and unusual hours worked. It must include both day and night shifts. It should also show working days, holidays and rest days the employee worked. Commissions and any other sums paid to the employee must also be included in these documents.

Employers are required to maintain accurate records of employee attendance and work hours. This should include information about sick days, vacation time and other relevant data.

An employee is eligible for 15 days of paid vacation leave after completing one year of employment and working a minimum of 200 days. This is compensated at 130% of the employee’s regular daily wage and must be paid before the vacation period begins.

Financial compensation for unused vacation days is prohibited. The exception for this is when an employee’s contract is terminated before they had the chance to take annual leave. Unused vacation days cannot be converted into monetary compensation and will be forfeited.

Sick leave entitlement varies with length of service. Employees with one to five months of service receive 20 days at 75% of their salary. Those with five to 12 months receive 40 days. Those with over a year are eligible for 60 days. Employees diagnosed with chronic illnesses cannot be dismissed until three months after their treatment ends. The Social Security System offers a daily disability benefit from the fourth day of illness, up to 52 weeks. The employer covers the first three days. A medical certificate is needed to claim sick leave.

Female employees are entitled to 16 weeks of maternity leave, including 10 weeks post-birth. The leave is extended if the baby arrives later than expected. To receive maternity cash benefits, employees must have been with the same company for six months and made 12 weeks of contributions before the expected birth date. They receive 75% of salary in advance, reimbursed by the Salvadoran Social Security Institute, provided they contribute to the system. A simple medical certificate confirming pregnancy is required. Employees have the right to return to their previous job after leave.

Male employees are granted three days of paternity leave, which must be taken within 15 days following their child’s birth. During this leave, employers are required to pay their full salary. Employers must provide a financial benefit equal to the usual wage for these three days.

When an employee loses a parent, child, partner or other dependent, they may take bereavement leave for as long as necessary. However, the employer is obligated to offer paid leave equivalent to two days of salary per calendar month. This is offered up to a maximum of 15 days of paid bereavement leave annually.

Employees may qualify for short-term leave for events like marriage or civic responsibilities. The details of this leave may vary based on employment contracts or workplace policies.

Following maternity leave, female employees are entitled to a one-hour daily break during working hours for breastfeeding or expressing milk. This entitlement is granted for up to six months after childbirth.

In addition to the minimum entitlements, employers commonly offer the following supplemental benefits:

• Performance bonuses
• Private health and life insurance
• Dental and Vision Insurance
• Allowances supporting transportation and car, housing/accommodation and utilities
• Prolonged or additional leave days (PTO)