- Overview: Bolivia
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
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 contracts
The employment contracts must be entered into for an indefinite term, but may be limited depending on the nature of the task to be completed or the service to be rendered. However, contracts can be entered into for a fixed term or for the performance of a specific work or service.
A fixed term employment contract or a contract for a 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.
Fixed term contracts can be entered for a maximum term of one year, and can be renewed once for the additional year, provided that the employer proves the absolute necessity of such renewal to the administrative authority. If work continues after the term has expired, the contract will be regarded as being of indeterminate duration.
There are exists seasonal contracts and contracts of indeterminate duration from the third contract, provided that they do not involve the normal tasks of the undertaking.
# Minimum (Statutory) Employment Rules and Regulations in Bolivia
# Hours of work:
The labour code prescribes the standard working day with duration of 8 hours which includes a minimum rest period of 2 hours and working week no more than 48 hours.
# Probation period:
The maximum duration of probation period is 3 months.
# Annual leave:
All employees are entitled to annual paid leave after one year of uninterrupted employment, 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.
# Parental leave:
Female employees are entitled to 45 days of 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 in 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.
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.
# Sick leave:
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 for 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.
For overtime work performing employee’s duties outside the standard hours employers are required to pay an additional 100 percent over the normal hourly rate for overtime during the working week and on holidays. A 300 percent overtime rate must be paid for work on Sundays.
# State minimum salary:
The Bolivia minimum wage is 1805 Bolivian bolivianos per month, plus an obligatory Christmas bonus equal to one month’s pay, prorated for the amount of time the worker has worked in their present position. A second bonus (on month pay) is paid in May if the company made a profit for the previous year and is declared by the government. Bolivia’s minimum wage was last changed in January 01, 2016.
# Employee dismissal:
Bolivian legislation defines that the contracts concluded for an indeterminate period and for a specified period may both be terminated by the employer without a valid reason, by giving 90 days’ notice or a compensatory indemnity equivalent to the salary for the corresponding period.
The employer can dismiss an employee without having to make any payments on the basis of any of the following reasons listed below:
- Intentional material prejudice caused to working tools.
- Disclosure of industrial secrets.
- Omissions or imprudence relating to industrial security and hygiene.
- Partial or total breach of the employment agreement.
- Robbery or theft.
- Intentional material prejudice caused to machinery, products or merchandise.
- Partial or total breach of the labour agreement or of the employer’s internal regulations.
- Breach of trust.
- Aggression, insults (defamation) or immoral conduct in the work place.
- Mass abandonment of the work place.
An employer can unilaterally terminate an employment relationship at any time without relying on any of the reasons listed above. In this case, the employee has the option to either:
- Accept dismissal and be paid social benefits (severance).
- Demand his or her reinstatement and continue working in the same position and with the same salary. In this case, the employee must initiate the required administrative procedure before the Ministry of Labour, which may be followed by a Constitutional Action. The employer can defend itself to uphold the dismissal, but bears the obligation to prove that the employee is not entitled to reinstatement.
An employee who accepts an unjustified dismissal is entitled to severance pay for years of service. The employee must receive one monthly salary for each year worked and for any incomplete year (for fixed-term employees).
Indirect dismissal can result from a reduction of the employee’s remuneration or a change of functions. The employer must give the employee three months’ prior notice of such change.
If the employee decides to continue working for the employer, the employer must pay compensation based on the employee’s period of service before the date when the reduction or change is effective. An employee who rejects the reduction or change is entitled to severance pay. Under the current regulations, it is not clear whether indirect dismissal gives the employee the right to request his or her reinstatement, but it is reasonable to conclude that it does.
An employee who resigns after three months of continuous work is entitled to severance pay for the time worked.