Employment contracts Peru

What should an employment contract in Peru include? 

An employment contract in Peru should include the following essential information:

• Both parties’ names should be written out in the contract.
• A detailed description of the position and its responsibilities.
• Details about the employee’s weekly working hours and schedule of required workdays.
• Benefits, overtime, base salary, and bonuses/commissions.
• Notice requirements, severance compensation clauses, and circumstances under which any party may terminate the agreement
• Confidentiality and nondisclosure clauses to protect the business’s confidential information.

Both parties should carefully read the contract before signing it to ensure they know all the terms and conditions.

What types of employment contracts exist in Peru?

The most typical types of employment contracts in Peru are:

1. Employee contract

The different types of employment contracts in Peru are as follows:

• Indefinite-term employment contract: The duration of this contract is not restricted by a specific date. Under such a contract, the employee is granted better job security, and the employer is usually obligated to compensate the employee upon termination, either through notice or severance.
• Fixed-term contract: This contract’s duration is agreed upon by the employee and the employer. The job’s title, description, working hours, rest periods, remuneration, frequency of payments, and benefits are all information that must be included in fixed-term contracts.

2. Project-based contract

The parties to a project-based contract stipulate the project’s start and end dates, as well as the worker’s duties and compensation. Dates and reasons for ending the project should be laid forth in the contract. While alternate arrangements are always possible, paying the worker a predetermined amount for their efforts on the project is common practice.

3. Author’s contract

A Peruvian author’s contract is required to contain specific details regarding the work, the rights granted to the publisher or producer, the length of the contract, the author’s compensation, and the conditions under which it may be terminated. Copyright laws and rules in Peru must also be followed, along with all other applicable laws.

How to hire employees in Peru?

In order to legally conduct business in Peru, you must first abide by all relevant rules and legislation, which includes forming a company and acquiring a tax identification number. Employers in Peru are required to give their workers the statutory minimum wage and any extra benefits for which they are qualified. 

Employers must also adhere to all existing laws governing employment as well as any additional standards and regulations. 

One option worth considering is to seek the support of a company that operates worldwide and offers Employer of Record service. Native Teams’ Employer of Record service will handle all of the administrative obligations on your behalf, including payroll, human resources, taxes, and a variety of other responsibilities.