Labor Law

Labor law in Nicaragua is governed by several statutes and regulations that outline the rights and obligations of both employers and employees. Some key aspects of labor law in Nicaragua include:

• Labor Code (Código del Trabajo): The Labor Code is the primary legal framework governing labor relations in Nicaragua. It covers various aspects of employment, including contracts, wages, working hours, overtime, holidays, termination of employment, and social security.
  
  
• Minimum Wage: Nicaragua establishes a minimum wage through government decree. The minimum wage varies depending on the sector and the type of work.
  
  
• Working Hours: The standard working hours in Nicaragua are typically eight hours per day and 48 hours per week, with a maximum of six days per week. Overtime is paid for work exceeding these limits.
  
  
• Holidays and Vacations: Nicaraguan labor law provides for paid public holidays and annual vacation leave for employees, typically ranging from 10 to 15 days per year, depending on the length of service.
  
  
• Social Security: Employers in Nicaragua are required to contribute to the country’s social security system, which provides coverage for health care, retirement benefits, disability, and other benefits for employees.
  
  
• Labor Inspections and Enforcement: The government of Nicaragua conducts labor inspections to ensure compliance with labor laws and regulations. Employers found in violation of labor laws may face fines or other penalties.
  
  
• Trade Unions and Collective Bargaining: Nicaraguan labor law recognizes the right of workers to form trade unions and engage in collective bargaining. Unions play a significant role in representing workers’ interests and negotiating collective agreements with employers.

It’s important to note that labor laws and regulations can change over time, so it’s advisable for employers and employees in Nicaragua to stay updated on any developments in labor legislation and seek legal advice if needed to ensure compliance with the law.