Global HR Compliance in Bolivia

If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Bolivia Guide below will help you understand the nuances of labor legislation in the country.

When the company is planning to enter a new foreign market of Bolivia and has a need to employ a local national there, the first question to answer is how it is going to make local hires.

We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.

This solution helps you employ your global sales force in Bolivia as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.

Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.

So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Bolivia instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.

Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.

Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Bolivia .

We are experts in global workforce employment in Bolivia, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.

Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.

With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Bolivia.

See Hiring and Firing Workforce in Bolivia Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Bolivia or would like to get more details.

Hiring and Firing Workforce in Bolivia Guide

# Employment Agreements

Permanent employment contracts

As a rule, employment contracts must be entered into for an indefinite term.

Casual employment contracts

Part-time workers must be paid at least the national minimum wage. All social benefits also apply to part-time workers. Part-time workers who work for a company that is part of a group of companies must be paid by the entity to which they render services.

Fixed-term contracts

A fixed-term employment contract or a contract for specific work or service must be in writing and approved by the competent officer at the Ministry of Labour. Lack of approval may have implications on the agreement’s effectiveness, and the agreement may be considered as an indefinite contract with all its effects.  A fixed-term employment agreement can only be used in special circumstances such as:

• Temporary replacement of workers (due to pregnancy, holidays and so on).
• Cases where the employer must increase the number of workers to cover specific demands of products or production.
• Completion of projects with a pre-established delivery date.

# Employment Termination and Severance Pay (Dismissal)

Labour Code sets out the following causes for the termination of employment and in these cases, there is no entitlement to severance pay or compensation:

• Intentional material damage to working tools/ instruments.
• Revelation of industrial secrets.
• Imprudence or omission impacting industrial security or hygiene.
• Partial or complete breach of agreement.
• Larceny or robbery committed by the employee.

Prohibited grounds:

• Marital status
• Pregnancy
• Color
• Sex
• Sexual orientation
• Religion
• Political opinion
• Nationality/national origin
• Age
• Trade union membership and activities
• Disability
• Financial status
• Language
• Birth
• Ethnic origin

Justified dismissal can also be based on internal rules and disciplinary procedures set out in the employer’s internal regulations which must be duly approved by the employees. Any cause invoked for justified dismissal must be duly backed up and fully proven. The employer does not need to pay social benefits when the employee is dismissed before completion of the trial period (90 days).  An employee who accepts an unjustified dismissal is entitled to severance pay for years of service. The employee must receive one month salary for each year worked and for any incomplete year (for fixed-term employees).

# Notice period

The Labor Law mandates employers to provide workers advance notice of their dismissal. The length of notice period varies for blue-collar workers (obreros) and white-collar (empleados).

Labour contract with workers (“ obreros”):

• 1 week of advance notice for contracts longer than one month.
• 15 days of advance notice for contracts longer than six months.
• 30 days of advance notice period for contracts longer than one year.

Labour contracts with employees (“empleados”) require a notice period of 90 days if the contract has been consecutively longer than 3 months.

# Severance payments

Other payments must be payable to the employee on termination, such as Christmas bonuses, holiday pay and profit bonus. On termination, the employer must present to the Ministry of Labour a certificate that confirms that it complied with its social security obligations and has no outstanding debts. Upon dismissal, the employer and employee must file a form called in Spanish “Finiquito” before the Labour Ministry. The employer is obliged to pay, within 15 days of dismissal, the amounts corresponding to severance payment (if applicable) plus other labor benefits owed to the employee. Female employees and their spouses or partners are protected against dismissal for a period of one year following a child’s birth. Union leaders and disabled workers also benefit from special protections against dismissal.

# Employee Benefits and Contributions

List all mandatory monetary and non-monetary benefits required by law to be provided by an employer:

• All employees are entitled to an annual paid holiday after one year of uninterrupted services (Vacations).
• Public holidays.
• Paid time off in the case of illness or injury.
• Maternity and Paternity rights and leaves.
• Christmas bonus (Aguinaldo).
• Seniority bonus (Bono de Antigüedad).

Other than obligatory employee benefits or rights are generally incorporated in the employment contract or in the employer’s internal regulations, which must be approved by the employees. The most common benefits relate to paid and unpaid leave in cases of maternity, paternity, birthday, death of a relative or other person on special request by the employee. Other rights may also be granted, such as housing, parking and so on. However, these benefits are part of the monthly salary and are subject to taxes and social security contributions.

# Probationary period

The trial period is regulated by the General Labor Law, which establishes a maximum trial period of three months. The trial period can be extended or renewed; however, the maximum term of the trial period is not specified by law. There is no trial period for fixed-term contracts.

#Overtime

Extraordinary working hours or overtime: this refers to hours that exceed the maximum daytime or night-time working hours. They must be compensated with 100% extra pay and must not exceed a total of two hours per day. Extra pay of 100% also applies to work done during public holidays. Work carried out to correct an employee’s mistakes does not count towards extraordinary working hours. To be entitled to payment for extraordinary working hours, a worker must be expressly authorized under the employer’s procedures. Overtime is work that is carried out at times of emergencies or to meet the employer’s needs. Overtime is treated as extraordinary working hours.

#Work hours

A day’s work is the time during which the employee is at the employer’s disposal. Working hours must not exceed eight hours per day (for daytime working) or 48 hours per week. For female workers, working hours cannot exceed 40 hours per week.

The following rules apply to working hours:

• Ordinary daytime working hours: between 6 am and 8 pm.
• These are not exceeding the legally established working hours (that is eight hours per day).

# Annual Leave

All employees are entitled to an annual paid holiday after one year of uninterrupted services, as follows: 

• From one to five years of uninterrupted services: 15 working days.
• From five to ten years of uninterrupted services: 20 working days.
• After ten years of uninterrupted services: 30 working days.

A worker who has received one or more partial severance (indemnity) payments but continues working for the employer will benefit from the annual paid leave corresponding to the years served since his or her hiring (provided that he or she worked continuously for the employer during that time).  Annual paid holiday entitlement cannot be compensated with money, except in the case of termination of the employment agreement. Unused annual paid leave can be accrued under a prior written agreement.

# Sick Leave

Entitlement to paid time off, In the case of illness or injury, an employee must be attended to in the health entity where he or she has been registered, under no additional cost for her or him or the employer. To be entitled to paid sick time off, the employee must provide a certificate showing an impediment to work.  Under Bolivian regulations, employers and employees must be registered with both entities regulating short-term social security (that is, health and short-term related assistance, such as maternity or certain accidents) and long-term social security (pension funds). Employers and employees must also pay certain social security contributions. Employers must register their employees with social security entities during the first five days of work.  Entitlement to unpaid time off, If an employee seeks assistance from a private health entity and does not use the social security system, expenses incurred will only be recognized and reimbursed by the employer or the social security entity in the case of an emergency and if the proper procedure for reimbursement is followed. If reimbursement is not recognized, any impediment certificate may also be rejected, in which case the employee’s salary will be reduced as a result of the days missed (unless properly authorized by the employer). Private health insurance is not uncommon. In many cases, employers’ contract private insurance in addition to their social security obligations (these cannot be replaced by private arrangements).

# Parental Leave

Maternity leave

Female employees are entitled to 45 days of fully paid leave before and after delivery (90 days in total) for the birth of every child. Female employees must be granted a period of one hour per day for breastfeeding during the child’s first year, under schedules established by the employer. This hour must not be included in the two-hour break entitlement. Under social security regulations, pregnant employees or spouses of pregnant employees are entitled to a pre-natal subsidy (from the fifth month of pregnancy) and to a nursing subsidy (until the child is one year old). Both subsidies must be paid by the employer and consist of monthly deliveries of dairy and nutritional products corresponding to one monthly national minimum wage. These employees are also entitled to payment of one monthly national minimum wage when the child is born, which is also paid by the employer. Female employees are protected from dismissal for a period of one year from the date of a child’s birth.

Paternity leave

Spouses or partners of pregnant employees are protected from dismissal for a period of one year following the child’s birth. They are also entitled to three days’ paid leave when the child is born.