August 15 is recognized as a public holiday in Guatemala City and other municipalities of the country. Therefore, employees in these localities do not work but are nevertheless entitled to receive their salary. This holiday is celebrated in commemoration of the Assumption of the Virgin Mary, who is the patron saint of certain municipalities.
Although its religious celebration holds significant cultural relevance, from a legal standpoint this day is regulated by the Labor Code, and the determination of the date on which it must be observed is further governed by the Law for the Promotion of Domestic Tourism (Decree 42-2010 and amendments).
1. Legal Framework of the Holiday
Article 127 of the Labor Code establishes that the day of the local fair constitutes a mandatory rest day with pay for employees. August 15 is the fair day in honor of the Virgin of the Assumption in the following localities:
- Guatemala City
- Tacaná, San Marcos
- Colotenango, Huehuetenango
- Tactic, Alta Verapaz
- Asunción Mita, Jutiapa
- Cantel, Quetzaltenango
- Jocotenango, Sacatepéquez
Unlike other transferable holidays, this holiday must be observed on the same date, regardless of whether it falls on a weekday or weekend.
2. Right to Salary During the Holiday
Two main scenarios arise:
- a) An employee who rests on this date: Such employee is entitled to receive full salary, as if he or she had worked.
- b) An employee who works on August 15: If services are rendered on this date, the employee must be paid the daily wage as mandated by law and, additionally, for each hour worked, an overtime wage must be paid. This overtime wage is equivalent to 150% of the value of the regular hourly wage (Article 128 of the Labor Code).
- Formula: Ordinary monthly salary ÷ 30 calendar days = daily wage ÷ 8 hours of a daytime shift = value of the regular daytime hourly wage × 1.5 = value of the overtime hourly wage.
- If the employee works a mixed shift, the calculation must be divided by 7 hours; and if it is a nighttime shift, by 6 hours.
3. Key Aspects
- Not all of Guatemala observes this holiday, as it depends on the date of the fair corresponding to each locality.
- Employers: must allow all employees to enjoy the holiday with pay, depending on their workplace. If an employee works on the holiday, the employer must keep records of the hours worked in order to pay them under the concept and calculation of overtime.
- Guatemala does not allow the use of a “time bank”; therefore, the holiday must be observed on the corresponding date and cannot be moved to another date at convenience.
- Failure to comply with these regulations may result in penalties; for this reason, it is important to obtain proper advice from experts.
Please contact us if you have questions or need any assistance with this or other labor-related matters.