Venezuela HR Information

Updated on: 2025/08/04 14:03 (UTC)

Overview

The Venezuelan constitution guarantees individuals the right to work in a job of choice, to join a union and to negotiate collective bargaining agreements with employers.

The main legislative source of employment law is the Organic Labor Law.

Hiring

Employment Contracts

A written contract of employment is preferred but not required.

The contract, a copy of which should be provided to the employee, should specify:

• employee name and identification number,
• job description,
• starting date,
• duration of the contract,
• responsibilities,
• length of working day or shift,
• salary and form of payment and
• the collective agreement that applies.

Contracts can be for a fixed term, a specific project or (as in most cases) an indefinite term. Fixed-term contracts that are renewed twice are considered permanent.

The outsourcing of jobs to contractors is expressly prohibited and a contractor may not act as an intermediary between employee and employer.

Restrictions on Hiring

The legal minimum age for employment is generally 14.

Children under 14 may be employed in certain artistic and cultural activities. Those between the ages of 14 and 18 may work subject to the Law for Protection of Children and Adolescents.

Minors may not work in positions that involve risks to their lives or health, positions requiring strength or endurance beyond their physical development or in any positions that impede or retard their normal physical development. Additionally, minors may not perform work that is prejudicial to their intellectual or moral development.

Minors may not:

• work more than 30 hours per week;
• work more than six hours per day, divided into two periods of no more than four hours each;
• work during the hours between 7:00 p.m. and 6:00 a.m.;
• be compensated based on units of production, tasks, piecework or commission, or
• be prevented from taking their employment vacation during school vacation periods.

The Labor Law prohibits outsourcing.

If a Venezuelan employer has 10 or more employees, at least 90 percent of the workforce must be Venezuelan, and at least 80 percent of total payroll must be paid to Venezuelan employees.

The Labor Ministry may authorize lower percentages. When a company hires foreign workers, it must give preference to those with Venezuelan children and those who have resided in Venezuela for five years or longer. In cases where special technical knowledge is needed and no Venezuelans can provide it, the labor ministry can issue an exemption to this rule, provided the foreign workers train Venezuelans.

The following employees must be Venezuelan:

• industrial relations managers,
• personnel managers,
• captains of ships or airplanes,
• foremen and
• employees exercising similar functions.

Recordkeeping

Employers must keep employment records for a period of 10 years. All documentation must be in Spanish.

Background Checks

Under the Labor Law, it is unlawful for an employer to inquire about the criminal record of a prospective employee. Criminal records are absolutely confidential and private and the use of criminal records in any employment decision (hiring, promoting, firing) is considered discrimination.

Under the Venezuelan Constitution, employers are prohibited from asking a prospective employee prior to the offer of a job to take a test for the purpose of determining any drug use or to require a current employee to take such a test as a condition of continued employment.

Employers are prohibited from requiring female job applicants to undergo medical or laboratory examinations to certify that they are not pregnant. Women may demand a pregnancy test, however, whenever they wish to be protected by the pregnancy provisions of the Labor Law.

Noncompetition Agreements

Noncompete agreements are allowed but cannot extend beyond six months of the termination of employment.

Workers in the private sector retain unlimited rights to their own inventions, and employers must pay the workers for the right to use them. When workers who own the intellectual property rights to an invention, innovation or improvement leave employment, the employer has 90 days to acquire the rights to the product.

Reference Citations

Employment Contracts: Labor Law, 2012, §§ 58-59 (Spanish)

Restrictions on Hiring: Labor Law, 2012, §§ 27, 32 (Spanish)

Background Checks: Labor Law, 2012, § 21 (Spanish)

Immigration and Work Permits

In General

If a Venezuelan employer has 10 or more employees, at least 90 percent of the workforce must be Venezuelan, and at least 80 percent of total payroll must be paid to Venezuelan employees. The Labor Ministry may authorize lower percentages.

Visas and Work Permits

When a company hires foreign workers, it must give preference to those with Venezuelan children and those who have resided in Venezuela for five years or longer. In cases where special technical knowledge is needed and no Venezuelans can provide it, the labor ministry can issue an exemption to this rule, provided the foreign workers train Venezuelans.

All business, labor and family visa applicants must supply routine information, including the completed visa application form, passport, copy of passport pages containing personal data, recent photograph, copy of flight itinerary indicating dates of entry into and exit from Venezuela and name of the airline, a money order for $60 payable to the Embassy of the Bolivarian Republic of Venezuela and a prepaid priority mail envelope for return of documents. Applications should be made three months in advance of travel.

The TR-N Business Visa is granted to executives, company representatives or entrepreneurs who enter Venezuela to carry out business transactions and negotiations. Any U.S. national or resident applying for this visa will be asked to provide a certificate of his or her employer’s incorporation in the U.S. or other foreign country; a letter from the company indicating the applicant’s position, purpose of the trip, the company’s contact information, information on the time to be spent in Venezuela and associated expenditures; a letter of invitation by a company in Venezuela, if applicable and evidence, if applicable, that the applicant is a majority shareholder in the company.

Contractors who apply for a Transient Labor Visa (TR-L) must have their visit authorized by Venezuela’s Ministry for Interior, Justice and Peace, with agreement from the Ministry for Social Work Process.

Artists, professional athletes and correspondents who work for foreign media companies must obtain authorization for exceptions to visa rules from the Ministry for Interior, Justice and Peace. Requirements include:

• authorization from the appropriate Venezuelan ministry;
• a certified copy of the work permit;
• diplomas, certificates and other evidence of qualifications for the work to be done;
• copy of the work offer or contract;
• health certificate;
• criminal record certificate issued by local authorities and
• any other document that the consulate requests.

A TR-L visa is granted for one year and includes multiple entries. It may be extended for a second year.

The spouse, minor children and parents of a TR-L visa holder must apply for a TR-FV Visa. Required documents include a marriage certificate or birth certificate, as appropriate.

Post-Entry Requirements

Once in Venezuela, foreign nationals must obtain a Venezuelan ID card from the Administrative Service for Identification, Migration and Aliens.

Penalties

A company that employs at least 10 workers can be fined for hiring foreign workers at a percentage exceeding 10 percent of the workforce or paying foreigners as a group more than 20 percent of payroll unless an exception has been granted by the labor ministry.

Reference Citations

Labor Law, 2012, § 27 (Spanish)

Nondiscrimination

In General

Exclusion, preference or restriction in access to work or in working conditions based on race, gender, age, civil state, unionization, religion, political opinion, nationality, sexual orientation, disability, or social origin is prohibited.

Disability Discrimination

The constitution expressly recognizes the right of persons with disabilities to be employed in order to provide for their basic subsistence, and the Law on Disabled Persons requires all public and private companies to hire disabled persons in a number equal to 5 percent of their total payroll and to engage them in positions appropriate to their abilities. The Labor Law requires that the state promote, adopt and develop public policies to ensure the full social inclusion of disabled workers so they can be incorporated into “productive and dignified” labor.

Gender Discrimination

The Labor Law guarantees the equality of women and men in selection, training, promotion, work stability and remuneration and requires employers to encourage equal participation of women and men in leadership responsibilities.

Under the Labor Law, female workers cannot be dismissed during pregnancy or within two years of giving birth, even if the child is given up for adoption. In addition, a pregnant woman may not be transferred unless the business requires it and the transfer does not endanger her pregnancy. A pregnant woman’s wages may not be reduced nor may other terms of her employment be altered to her disadvantage.

Fathers have legally protected job security for two years after the birth of a child.

Venezuelan law requires employers to take adequate measures to prevent any form of harassment, including sexual harassment, and to establish policies focused on eradicating harassment from the workplace. The Law on Violence Against Women punishes sexual harassment with a prison term of between eight and 20 months.

Pay Discrimination

The Labor Law establishes the principle that equal wages must be paid for equal work performed under equal conditions with equal efficiency. Employers may pay bonuses based on workers’ seniority, diligence, family responsibilities, basic economic needs and similar criteria, as long as the bonuses are given to all workers in similar circumstances.

Reference Citations

Nondiscrimination: Labor Law, 2012, § 18 (Spanish)

Disability Discrimination: Labor Law, 2012, § 505 (Spanish); Law on Disabled Persons, 2006, § 28 (Spanish)

Gender Discrimination: Labor Law, 2012, § 20 (Spanish)

Pay Discrimination: Labor Law, 2012, § 109 (Spanish)

Employee Privacy

Employee Data

Employers must obtain employee consent prior to collecting, using, and transferring their personal data. Employees have the right to update, rectify, or destroy incorrect information that unlawfully affects their rights.

Employee Monitoring and Surveillance

Venezuelan law does not address employee monitoring and surveillance.

Reference Citations

Employee Data: Venezuela Constitution, art. 60 (Spanish)

Compensation

Hours of Work

The workday is subject to the following limits:

• day positions (5 a.m. to 7 p.m.) are limited to eight hours daily and 40 hours weekly;
• night positions (7 p.m. to 5 a.m.) are limited to seven hours daily and 35 hours weekly; and
• mixed positions (with fewer than four hours of night work) are limited to seven hours daily and 35 hours weekly.

In order for employees to have two full days of rest each week, the workday may be extended to nine hours, subject to a maximum of 44 hours per week. Average weekly hours cannot exceed 40 in an eight-week period.

In positions that do not require continuous work, the worker may not be required to work more than five consecutive hours and must be allowed at least an hour’s rest, which may be divided into two 30-minute periods.

Shift workers’ average workweek is limited to 42 hours; if a six-day week is worked, the worker receives an extra day of paid vacation.

A daily limit of 11 hours—with the right to a minimum of one hour of rest per work session—applies to management employees, confidential employees, inspectors, guards, workers who perform discontinuous or intermittent tasks (or jobs that require the sole presence of the worker or entail periods of inactivity during which the worker is on call) and workers who perform jobs that by their nature are not subject to working days (e.g., watchmen). These workers are entitled to two days of rest per week and work hours must average 40 hours per week over an eight-week period.

Emergency working hours may not exceed 10 per day, 10 per week and 100 per year.

The Labor Law establishes Sunday as a weekly day of rest.

No work of any kind may be performed during the weekly day of rest or on holidays except for work that must not be interrupted for reasons of public interest or for other technical or special reasons. A worker who works for more than four hours on a Sunday is entitled to a full day’s pay and compensatory rest.

Minimum Wage

Venezuela’s minimum payment that employers are required to provide employees consists of a general minimum wage amount and a required food bonus payment. The minimum wage in Venezuela is 130 Venezuelan bolivars per month.

Overtime

Overtime work is compensated at one and one-half times the hourly wage agreed to for a normal workday.

An employee who works four or more hours on a weekly rest day or holiday is entitled to compensation for that day plus one and one-half times the wages payable for an additional full day.

Overtime is limited to 10 hours a week and 100 hours per year.

Wage Payment

Wages must be paid in cash unless the employee agrees to accept payment by check. Employers and employees can agree on a fixed schedule for the payment of wages, but payment cannot be less frequent than once every two weeks unless the employee receives food and housing from the employer, in which case the payment can be made once a month.

Wages must be paid on a regularly scheduled workday during normal work hours and employers must notify employees of the schedule in advance.

Mandatory Bonuses

Venezuelan law requires employers to distribute to their employees at least 15 percent of net liquid profits accrued each fiscal year.

Shared profits must be distributed within two months after the close of the company’s fiscal year, although workers are entitled to an advance paid during the first 15 days of December or at the time established in a collective labor contract. The advance payable to each worker is equal to 15 days’ wages or the amount of profit sharing corresponding to the months actually worked during the fiscal year.

Small companies and nonprofit employers are excluded from statutory profit sharing, although they are required to pay a yearend bonus equivalent to at least 30 days’ wages.

The minimum amount of profits to be distributed to each worker is equivalent to 30 days’ wages for each fiscal year.

If an employer does not realize profits or if profits realized are insufficient to meet the mandatory minimum, the employer nevertheless must pay a bonus to each worker equivalent to 30 days’ wages.

Reference Citations

Hours of Work: Labor Law, 2012, §§ 173-175 (Spanish)

Overtime: Labor Law, 2012, §§ 178-180 (Spanish)

Wage Payment: Labor Law, 2012, § 104 (Spanish)

Mandatory Bonuses: Labor Law, 2012, § 131 (Spanish)

Benefits

Vacation

After one year of uninterrupted service with the same employer, employees are entitled to 15 paid days of vacation. For each additional year of service, employees are entitled to an additional paid day of vacation up to a maximum of 15 additional days.

Annual vacations generally must be taken within six months of the time the vacation was earned, although employees may request to postpone up to two years of earned vacation days, allowing for the accumulation of up to three vacation periods.

Vacation pay is given to employees at the start of the vacation period. In addition to the payment for vacation days, employees are entitled to receive a vacation bonus equal to 15 days of wages for the first year of service plus one additional day for each additional year worked up to a maximum of 30 days.

The time at which annual leave is taken is normally a matter of agreement between the employee and the employer. An employee who works and receives compensation from someone other than the employer during the vacation time loses the right to receive vacation pay.

When the employment relationship terminates, if the employee has not taken all accrued vacation days, the employer must pay in full the compensation corresponding to the accrued vacation time and the respective vacation bonus. Vacation time may not be taken during the termination notice period.

Holidays

Employees are entitled to the following nine paid public holidays:

• Jan. 1: New Year’s Day
• Monday and Tuesday of Carnival (the two days before Ash Wednesday)
• Maundy Thursday (the Thursday before Easter)
• Good Friday (the Friday before Easter)
• May 1: Labor Day
• Dec. 24: Christmas Eve
• Dec. 25: Christmas Day
• Dec. 31: New Year’s Eve

Additional holidays may be declared by the national government, the states or municipalities.

There is no in-lieu-of day if the holiday falls on a weekend. An employee who must work on a holiday is entitled to an additional 50 percent above normal salary.

Maternity Leave

Female employees are entitled to six weeks’ paid maternity leave before birth and 20 weeks afterward. This period can be extended if an employee contracts an illness during pregnancy or childbirth that renders her incapable of working. If the child is born late, the mother is still entitled to a full 20 weeks’ postnatal leave; if the child arrives early, the mother’s postnatal leave is extended. If an employee wants to use her accrued vacation time immediately after maternity leave, the employer must allow it.

The employer may require the employee to provide medical certification of her pregnancy.

The employee is entitled to maternity leave even if she gives up the child for adoption.

The social insurance program pays maternity benefits. The maternity benefit is equal to 100 percent of earnings and is paid for up to six weeks before childbirth and 20 weeks after childbirth.

The Law on Prevention, Work Conditions and Work Environment Regulations gives female employees the right to one day or two half-days of paid time off during each month of pregnancy to attend medical appointments. During the first nine months after birth, a female employee is also entitled to two daily rest periods of 30 minutes each to breast-feed her child; if there is no on-site nursery, she is entitled to two 60-minute breaks. In addition, during the first year of a child’s life, either parent has the right to one day of paid time off per month to go to the pediatric hospital.

After the child is born, the mother may not be dismissed from her job for a period of two years. If the child is born with a disability, the mother cannot be fired and is guaranteed a job for life.

An employer with more than 20 workers must maintain a nursery, including an area for breast-feeding, where workers can leave children between the ages of 3 months and 6 years during the workday. The nursery’s staff must be qualified to give the children adequate attention and education. The ministries of labor, education and social security are responsible for workplace child-care centers.

Paternity Leave

Male employees are entitled to 14 days’ paid paternity leave, beginning on the date the child is born.

The employee must provide his employer with the child’s birth certificate certifying that he is the father.

Paternity leave is extended by 14 days if the child or the mother has a severe illness, by 21 days in cases of multiple births. If the mother dies, the father of the child is entitled to the postnatal leave that would have been given to the mother.

During the first year of a child’s life, either parent has the right to one day of paid time off per month to go to the pediatric hospital.

The father of a child under the age of 2 may not be dismissed from his job without just cause.

Sick Leave

The employer must pay the employee’s salary for the first three days of illness, after which the social insurance program pays sickness benefits.

The sickness benefit is equal to 66.7 percent of earnings, is paid after a three-day waiting period for up to 52 weeks and may be extended under certain circumstances. The benefit is reduced by 50 percent if the insured is hospitalized.

Other Leave

Adoption leave. A female employee who adopts a child under the age of 3 is entitled to 26 weeks’ adoption leave starting from the date the child is placed and to compensation for the maintenance of both parent and child. A male employee who adopts a child is entitled to paid paternity leave of 14 days after placement of the child. Parents of adopted children under the age of 3 may not be terminated for as long as two years after the child is placed in their care.

Pensions and Social Security

Venezuela’s social security system provides old age, disability and survivor’s benefits to all workers. Employers contribute the equivalent of 15 days’ salary per quarter (between 9 and 11 percent of the payroll), while insured persons contribute an average of 4 percent of covered earnings. These contributions also finance workers’ compensation benefits, and employer contributions also finance sickness and maternity benefits and the marriage grant.

The maximum monthly earnings for contribution and benefit purposes are 10 times the minimum wage. The government contributes at least 1.5 percent of total covered earnings to offset administrative costs.

Old-age pensions. Employees who have made at least 750 weeks of contributions are entitled to an old-age pension at age 60 (for men) or age 55 (for women). Persons who work in unhealthy or arduous occupations may be entitled to a pension at a lower age. Retirement is not necessary to receive a pension.

Old-age grant. If an employee does not meet the requirements for the pension but has made at least 100 weeks of contributions in the last four years, the employee is entitled to a grant equal to 10 percent of total covered earnings.

Disability pension. A disability pension is paid for the permanent or prolonged loss of more than 66.6 percent of working capacity with at least 250 weeks of contributions (reduced by 20 contributions for each year the insured is younger than age 35), including 100 weeks in the last three years before the disability began. There is no qualifying period for a disability caused by an accident. A partial disability pension is paid for an assessed degree of disability between 25 percent and 66.6 percent.

Disability grant. A grant is paid for the permanent or prolonged loss of more than 66.6 percent of working capacity with at least 100 weeks of contributions. The disability grant is equal to a lump sum of 10 percent of the insured’s earnings.

Survivor pension. A survivor’s pension is paid when the insured satisfied the qualifying conditions for a pension or was a pensioner at the time of death. There is no qualifying period if the death is caused by an accident.

Survivor grant. A survivor’s grant is paid when the insured did not satisfy the qualifying period for a pension but had at least 100 weeks of contributions during the last four years. The survivor grant is 10 percent of the deceased’s total covered earnings.

Marriage grant. A marriage grant is provided to workers covered by the social insurance system if the worker has made 100 weekly contributions in the three years before marriage.

Medical benefits. Free medical care coverage extends to employees in the public and private sectors and their dependents. Benefits include general and specialist care, hospitalization, laboratory services, medicines, dental care, maternity care, appliances and transportation.

Workers’ Compensation

Workers’ compensation is covered by Venezuela’s social insurance program. The employer contributes between 0.75 percent and 10 percent, depending on the assessed degree of risk. There is no minimum qualifying period. Workers’ medical benefits include free general and specialist care, hospitalization, medicines, laboratory services, appliances and rehabilitation services.

Temporary disability benefits. The benefit is equal to 100 percent of the insured’s earnings and is paid after a three-day waiting period until the insured person is rehabilitated, recovered or certified with a permanent disability. A constant-attendance supplement of up to 50 percent of the benefit is paid if the insured requires the constant attendance of others to perform daily functions.

Permanent disability benefits. The benefit is equal to 100 percent of the insured’s earnings. If the insured has a disability greater than 66 percent, is unable to continue the same job and is subsequently rehabilitated and rejoins the workforce, the pension is reduced according to the percentage of the reassessed degree of disability. A constant attendance supplement of up to 50 percent is also available. For a permanent disability of greater than 25 percent but less than 67 percent, a percentage of the full pension is paid according to the degree of disability. A lump sum of three times the insured’s earnings multiplied by degree of disability is paid for a permanent disability of 5 percent to 25 percent.

Reference Citations

Vacation: Labor Law, 2012, §§ 190, 192, 200 (Spanish)

Holidays: Labor Law, 2012, §§ 120, 184 (Spanish)

Maternity Leave: Labor Law, 2012, §§ 335-336, 340 (Spanish)

Paternity Leave: Labor Law, 2012, § 339 (Spanish)

Pensions and Social Security: Social Security Act, 2008, §§ 66-68 (Spanish)

Workers’ Compensation: Social Security Act, 2008, §§ 13-14, 17, 19, 20-22 (Spanish)

Labor Relations

In General

Collective bargaining rights are established in the constitution and the Labor Code and provide employees the opportunity to negotiate better working conditions than those required by law.

Right to Organize

Once a collective bargaining agreement has been executed, its provisions must be incorporated into all individual labor agreements, including the labor agreements of employees who are not members of the union that signed the collective agreement.

Unions may be organized in a variety of ways, based on a common employer, occupation, industry or economic sector. Unions may be local, state, regional or national in their geographic scope and must register with the national labor inspector if they are national or regional and with the labor inspector of the jurisdiction if they are local or state.

Employers, unemployed people and retired citizens may not form trade unions. Employers may form solidarity organizations as allowed by the constitution, and unemployed people or retired citizens may join trade unions or form other organizations to represent their interests.

Employer interference in employees’ labor union participation is expressly forbidden by the 2012 Organic Labor Law.

Dispute Resolution

The collective dispute process is available only to labor unions, which alone can demand arbitration.

When contract talks fail to produce an agreement, the labor ministry initiates mediation. If that fails, the dispute is placed in arbitration and a board of arbitration formed of one member chosen by the employer, another by the workers and a third by mutual agreement to chair the panel. The board’s decision is binding on both parties.

Strikes and Lockouts

Generalized strikes in an industry are permitted when agreement cannot be reached between employees and employers. The primary civil authority of the jurisdiction must be notified of the declaration and termination of a strike.

Workers who perform services essential to public health or to the care and maintenance of machinery that must run continuously or charged with the care and safekeeping of the work premises must continue working during strikes. The number of workers compelled to continue working during strikes should be established by mutual agreement of the employer and the labor union.

Workers’ service time is not affected by strikes, and companies cannot hire replacement workers or transfer workers from other sites to carry out the work of the strikers. Employers may not engage in industrial actions such as lockouts, and workers involved in collective labor disputes may not be dismissed during the duration of the dispute.

Successorship Clauses

Employment agreements are not affected by a change in ownership. The company must notify workers of the change in ownership, and those who are not happy with the new arrangement may resign without loss of any legally provided termination benefits.

Reference Citations

Right to Organize: Labor Law, 2012, §§ 355-357 (Spanish)

Dispute Resolution: Labor Law, 2012, § 465 (Spanish)

Strikes and Lockouts: Labor Law, 2012, §§ 486-487, 489 (Spanish)

Successorship Clauses: Labor Law, 2012, § 68 (Spanish)

Safety, Health and Security

In General

The Labor Law requires employers to guarantee employees an acceptable level of safety, including a sanitary workplace, protection against workplace risks, disabled-accessible facilities, emergency medical assistance, and accident-prevention training.

Workplace Safety and Health

If an employer fails to meet its health and safety obligations, it can be subject to fines, temporary or permanent closure and/or imprisonment of the persons responsible.

The Labor Law requires employers to provide safe and dignified working conditions that guarantee:

• intellectual, moral and physical development;
• training and exchange of knowledge as part of the work process;
• time for rest and recreation and
• prevention of sexual and workplace abuse or harassment.

If a company has at least 500 employees in a workplace that is 50 kilometers (31 miles) or more from the nearest town, the employer is encouraged to provide workers and their immediate families with housing. If the workplace is 30 kilometers (19 miles) or more from the nearest town, the employer should provide free transportation from home to work and count half the commute as time worked. If a company has 1,000 employees or more in a workplace more than 100 kilometers (62 miles) from a city, the employer must establish a fully equipped health center and schools for workers’ children.

A female employee has the right during the period of her pregnancy and for up to 12 months thereafter not to perform tasks that may put at risk her life, health or safety or the life, health or safety of her child. Employers must adopt all measures necessary to ensure that an employee is able to exercise this right, which may not adversely affect the terms of her employment.

The National Institute of Occupational Health, Prevention and Security is responsible for the enforcement of safety and health standards in the work environment.

Drug and Alcohol Use

It is illegal to possess or sell drugs and alcohol in the workplace.

Reference Citations

Workplace Safety and Health: Labor Law, 2012, §§ 43-45 (Spanish)

Drug and Alcohol Use: Labor Law, 2012, § 243 (Spanish)

Termination

Termination by Employer

Permanent employees who are not managers and who have more than three months’ service with the employer may not be dismissed without good cause. Employees hired for a fixed term or for a specified project cannot be dismissed without good cause during the term period. Valid reasons for dismissal include lack of integrity or unethical behavior at work, intentional or gross negligence affecting the safety or health of the workplace, three unjustified absences during one month and commission of harassment or sexual harassment. These provisions do not apply to management employees, temporary or occasional employees or domestic workers.

Some employees are protected by a special bar against dismissal unless good cause is shown. These include:

• leaders of union organizations,
• labor and safety committee delegates,
• women during pregnancy and during the two years following the date of birth,
• anyone who adopts a child younger than 3 years of age during the two years following the adoption,
• men during the first two years following the birth of a child,
• parents of a child with disabilities for the duration of their working lives and
• workers involved in a collective labor dispute for the duration of the dispute.

The employment relationship may be terminated by dismissal or resignation with no prior notice to the other party when good cause exists to justify the action, provided that 30 days have not passed since the cause was known or should have been known.

In the case of a justified dismissal, the employer must provide the employee with written notice of dismissal, explaining the reason for the termination of employment. Once this notification has been given, the employer may not cite other causes to justify the dismissal. The employer must also give the reasons for the dismissal to the Court of First Instance for Labor Cases within five working days of the employee’s dismissal. If timely notice is not given, the employer will be deemed to have admitted that the dismissal was unjustified.

On Nov. 13, 2108, President Macri declared that companies must give 10 days’ notice to the government of any plans to lay off workers so that the government can help find ways to keep the workers employed.

Upon termination, an employee is entitled to receive a work certificate from the employer stating:

• the duration of employment,
• the last salary received and
• the job performed.

The employer may not give out any other information.

Reduction in salary, transfer to an inferior position and arbitrary changes in the work schedule amount to constructive discharge and give the worker the right to leave with entitlement to social benefits and severance pay.

In the case of an unjustified dismissal, the employer must give prior notice.

An employer may dismiss an employee without cause by paying the employee an indemnity equal to the wages that the employee would have earned during the notice period.

Protected classes of employees include the top officials of a union’s directing council, union members standing for election in their union, striking workers, and anyone in the process of registering to join a union. In addition, mothers and fathers are protected from termination from the date a pregnancy is confirmed until two years after the child is born.

Termination by Employee

In the case of an unjustified resignation, the employee must give prior notice.

An employee may resign without justification and without notice by paying the employer an indemnity equal to the wages that the employee would have earned during the notice period.

Plant Closings and Mass Layoffs

Mass dismissals are those that affect within a three-month period at least 10 percent of workers in an organization with more than 100 workers, 20 percent of workers in an organization with more than 50 workers, or 10 workers in an organization with fewer than 50 workers. The Labor Ministry is authorized to stop such a dismissal if this is in the public interest.

Payment on Termination

Severance pay is provided for workers who leave following transfer to an inferior position or arbitrary changes to a work schedule, which are considered constructive dismissal.

Workers who leave a job before the expiration of a contract for justified reasons are entitled to severance pay equal to the salary that would have been paid until the end of the contract.

Employees are also entitled to a seniority payment upon termination of employment for any reason. Employers also must give workers an additional month’s pay for informing them that they are being dismissed.

Following passage of the 2012 Labor Law, employees may elect to have their payment calculated under a new system based on 30 days’ salary (calculated using the employee’s final salary) for each year of service since June 19, 1997, or under the old system, in which seniority payments are earned by all employees and begin to accrue as soon as the employee reaches three continuous months of employment.

Under the old system, seniority payments are earned in accordance with the following schedule:

• five days’ wages for each month of service and
• after the first six months of service, two additional days’ wages for each subsequent year up to a total of 30 days’ wages.

The statute of limitations for claiming social benefits is 10 years from the date of termination.

If a worker dies, the social provisions payment is made to the next of kin; if more than one family member claims the payment, it is divided among the claimants.

Unemployment Insurance

Unemployment compensation is covered by Venezuela’s social insurance program. Insured employees contribute 0.5 percent of covered earnings, employers 2 percent of covered payroll.

To be eligible for unemployment benefits, the insured must have made at least 52 weeks of contributions in the 24 months before unemployment began and be available for training or suitable employment.

The benefit is equal to 60 percent of the insured’s average weekly wage in the last 12 months and is paid for up to five months. Unemployed insured persons and their dependent family members are eligible for medical benefits for 52 weeks. An employee whose contract was for less than three months is entitled to receive social benefits calculated at five days of salary per month of employment.

Reference Citations

Termination by Employer: Labor Law, 2012, §§ 76-77, 79-80 (Spanish)

Termination by Employee: Labor Law, 2012, § 243 (Spanish)

Plant Closings and Mass Layoffs: Labor Law, 2012, § 95 (Spanish)

Payment on Termination: Labor Law, 2012, § 142 (Spanish)

Personal Taxes

Residency Requirements

An individual is regarded as being domiciled in Venezuela for tax purposes if he or she:

• remains in Venezuela for more than 183 days during a given calendar year (regardless of nationality),
• remained in Venezuela for more than 183 days in the prior calendar year (regardless of nationality and regardless of the number of days the person remains in Venezuela in the current calendar year),
• resides in Venezuela unless the person remained abroad for more than 183 days during the calendar year and can prove tax residency in another country or
• is a Venezuelan citizen regardless of any physical presence in Venezuela or the existence of a residence there unless the person can prove tax residency in another country.

Taxable Income

Residents of Venezuela are subject to income tax on their worldwide income. Nonresidents are subject to income tax only on their Venezuelan source income.

Taxable income includes salary and other income from employment including the cash value of benefits in kind.

Taxable income does not include:

• compensation for work injuries;
• compensation received under an insurance contract;
• pensions received as a result of retirement, seniority or invalidity;
• travel expenses and
• meal bonuses.

Tax Rates

Nonresidents are taxed at a flat rate of 34 percent on salary and other income for services performed in Venezuela.

The income tax rate for residents is progressive and ranges from 6 percent to 34 percent depending on annual income. The rates are calculated using tax units (TU)—a referential measure that allows annual updates for inflation..

Employers and employees are also liable for social security contributions.

Reference Citations

Residency Requirements: Tax Code, 2001, § 30 (Spanish)

Web References

Law and Regulation

In Spanish unless otherwise noted.

Labor Law

Law for Protection of Children and Adolescents

Law on Disabled Persons

Law on Prevention, Work Conditions and Work Environment

Law on Prevention, Work Conditions, and Work Environment Regulations

Law on Violence Against Women

Venezuela Constitution (English)

Government Websites and Publications

In Spanish.

Instituto Nacional de Prevención, Salud y Seguridad Laborales

Ministerio del Poder Popular para Relaciones Interiores, Justicia y Paz