First, some facts about Nicaraguan labor Code. INSS particularly is getting quicker to fine employers who have not inscribed their workers, and Immigration is beginning to enforce the law of tourists working, just as Costa Rica 25 years ago Sample work contracts are at the very end. These amounts should be paid off within 10 days of termination.
Employer argued that since he had elected Nicaraguan remedies, he had chosen Nicaraguan substantive law as governing the case, and so Florida law should be declined.
And remember Fundamental Principle Eight, which dictates that in even cases the labor court must decide in favor of the worker. It is the law, for starters, and there is a penalty if you do not. It is based on European, Central American, and some Nicaraguan native traditions, and has very little to do with American state or federal labor law. My experience has been that even when we caught an employee red handed and they got charged with a felony, we still had to finally pay something to end the matter.
The labor law in English and Spanish: The lawyer and the company got into a fee dispute, and then a general dispute. Article Firing For threats, Theft, and Related. More importantly, if your empleado gets injured, like slips and falls, or fall out of a tree, if they are enrolled, INSS covers it, if not, the employer must pay the medical costs.
But here is the problem: When that is done, the employer is off the hook, and a subsequently filed lawsuit filed against the employer will have little success. Litigating a labor case for the principle, is almost always nuts. The other common labor contract labor contract is the time determinate contract, which is for a set time.
Obligation of Employers Arto The most common type of work contract is the time indeterminate contract. But when followed, and accrued vacation and Aguinaldo is paid, there is no further liability for the employer, a benefit of the labor code.
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Either party may end the contract, but the employer will have to pay out the severance, vacation, and Aguinaldo that have accrued to the date of termination, those called in the code prestaciones sociales. The major trap of the professional services contract is that if a court finds a professional services contract is really a work contract, this fine is imposed, as are amounts of unpaid vacation and prestaciones sociales.
Why enroll your employee in INSS? Understanding how Nicaraguan labor law works is a useful tool in determining whether to work, and how to get paid for work in a completely legal manner. There have been a few adjustments over the years, primarily in matters of procedure, but the law has been in effect with little substantive change.
Lawpassed by the Asamblea Nacional inwent into effect on January 1, and has been in effect ever since. While one may assume that what happens in Nicaraguan is governed solely by Nicaraguan law, an inventive and enterprising lawyer in Florida, or some other state, may well be able to conjure up jurisdiction over a cause of action, for a labor claim happening in Nicaragua, into Federal District Court in Florida or Employment Security Commission, or some other particular state, particularly if the employer has ties to that state.
The law was an attempt to develop a law and procedure that was equitable to both workers and employers. Practically, this can prove difficult to do. If they work those hours on sequential days, they may rule the employee is actually full time for determining the percentage to pay INSS i.
One of the less obvious advantages of hiring an American as an employee, by an employer who is also an American, is that it caps liability to the labor code liability.
The difference is that in Honduras the bonus is two full months of pay, whereas in Nicaragua it is one full month of pay. A downloadable PDF file of the minimum wages for each work category: INSS is the government agency you pay for the benefits of your employee, provide contracts, terminations, etc.
The rights of severance, vacation, and Aguinaldo cannot be renounced or waived.
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It would have been cheaper to pay the liquidation and forget the costs of a lengthy lawsuit. The code has never been completely translated into English, which is a shame, as it is written in a very clear Spanish prose, and translates easily. Respect the working day, grant established breaks and set the working calendar in a visible place of the workplace.
The lawyer filed a labor claim arguing that he really had a time indeterminate contract and he was owed back prestaciones sociales, vacation pay, and aguinaldo and fines. The calculation of prestaciones sociales and Aguinaldo are done by taking an average of monthly wages over several months.
But after the first 30 days all the labor benefits attach to the worker. Most terminations take place based on Article 45 see translation of this article in annex. Never put yourself in a position where you must rely on a judge that you do not know to protect your rights. Some interesting provisions include: The lawyer won the case, it went on appeal, and he won the appeal. But be mindful you will slot vervangen havensteder asking a labor court, with Fundamental Principle Eight, to rule against a Nicaraguan worker.
That is legally a nullity, and the employer will probably be beaten over the head by those illegal provisions in a labor tribunal. More on the Aguinaldo later. And the fine continues to accrue until it is paid, no matter how long that takes. If you treat almost all contracts as work contract, except contracts for accountants, lawyers, and doctors, and you pay all the amounts due, you are pretty well protected, no matter if a lawsuit is filed or not.
This is closest to the American contract of tenancy at will.