#Panama 🇵🇦 #BDS_LaborAlert: Increase in the Employer Contribution Rate to the Social Security Administration
On March 18, 2025, Law No. 462 was published in Panama’s Official Gazette. This law amends, adds,...
Nov 29, 2022 11:37:08 AM
1 min. read
#ElSalvador 🇸🇻 #BDS_LaborAlert: Short-Term Contracts for the Holiday Season
During the beginning of the holiday season, it is very common for employers that see an increase in sales to hire employees on a definite term basis, that is, using “fixed-term contracts”.
It should be noted that according to our labor regulations, this term will only be valid in the following situations:
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If based on objective circumstances that led to this agreement, the tasks to be performed may qualify as transitory, temporary, or eventual; and
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Provided that for contracting purposes, certain circumstances or events that will result in full or partial termination of the job tasks in a comprehensive or successive manner are considered.
In case that there is no written agreement providing clear evidence that this is a fixed-term contract and detailing in a precise manner the objective condition that requires the contract to be subject to a fixed term, such agreement will be deemed an indefinite-term contract, even if it establishes a specific term for termination.
The consequence from executing an individual fixed-term employment agreement is that upon expiration of its term, there is no right to claim compensation, as the termination of the employment relationship is not a consequence from a dismissal with cause.
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