El Salvador is the smallest nation in Central America and borders the North Pacific Ocean between Guatemala and Honduras. In 1821, El Salvador won independence from Spain and in 1839, from the Central American Federation. A brutal civil war that cost 75,000 lives concluded in 1992 when the government agreed to establish a multiparty constitutional republic. With a population of 6,172,011, El Salvador remains a very poor nation with an agricultural focus on coffee which makes up almost 90% of its exports. Spanish and Roman Catholicism are, respectively, the predominant spoken language and practiced religion in the region. Ethnic groups represented in the country include Mestizos, whites and indigenous peoples. El Salvador has a tropical climate and is geographically situated in an area of tremendous climate volatility, including being susceptible to droughts and earthquakes. It also has very rich biodiversity with several species of wildlife that recent conservation efforts have been pushing to protect. The country’s most well-known culinary product is the pupusa, a hand-made corn tortilla stuffed with cheese, chicharrón, or refried beans.
In El Salvador, the Labor Code defines permanent employment as a type of employment relationship related to tasks that, by their nature, are permanent. These would be tasks that cannot be classified as temporary or transitory. Permanent employment contracts are considered to be made for an indefinite period after the end of the probationary period unless an end date is specified in the employment contract.
In El Salvador, the Labor Code requires individual labor contracts to be submitted in writing to the General Directorate of Labor within 8 days of signing. The contract must also be provided to the employee within 8 days of the commencement of employment. If the agreement is not made available to the employee, they can contact the General Directorate of Labor to conduct an inquiry into the matter.
The employment contracts must be drafted in Spanish and contain the essential terms enumerated in the Labor Code.
The Labor Code of El Salvador provides that in cases where a permanent employee is not available due to suspension of the employment contract or any other cause, employers can hire interim employees to fill in. When the permanent employee returns, the contract with the interim employee will end. However, temporary employees are presumed to be permanent if they continue working for more than 15 days after the substituted employee returns.
Temporary workers have no right to job stability, and consequently, either party can terminate the employment contract at any time without cause. However, employers must register temporary workers with the Salvadoran Social Security Institute.
In El Salvador, the Labor Code provides that an employment contract can stipulate a probationary period of up to 30 days. Either party may terminate the agreement without cause during the probationary period. If the probationary period expires without either party having manifested its will to terminate the contract, it will continue indefinitely unless the parties have set a deadline for its termination. If a new contract is concluded between the same contracting parties within 1 year for the same kind of work, no probationary period can be stipulated in the new agreement.
It is mandatory for employers to register probationary employees in the Salvadoran Social Security Institute.
Per the Labor Code, the working time in El Salvador cannot exceed 8 hours in a day or 44 hours in a week. All work done over this limit is considered overtime and must be remunerated at 200% the ordinary salary.
If a job requires the completion of dangerous or unhealthy work during the day, working time cannot exceed 7 hours a day or 39 hours a week. For jobs that require the completion of dangerous or unhealthy work during the night, working hours cannot exceed 6 hours a day or 36 hours a week.
Teleworking is strictly voluntary for both the employee and employer and there must be a written agreement between the parties where the terms and conditions are established.
According to the Labor Code of El Salvador, employees are eligible for an annual leave of 15 days after 1 year of work with the same employer. The employee must have worked for at least 200 days in the year to qualify for the annual leave.
The employee is entitled to a benefit equal to the ordinary salary plus a 30% surcharge for the duration of the leave. For jobs that include room and board allowance, the annual leave pay rate is increased by an additional 25%. The remuneration for leave must be paid to the employee immediately before its start.
Per the Labor Code of El Salvador, an employment contract can be suspended during a period of employee illness. Employers must pay an amount equal to 75% of the employee's base salary for the duration of illness. If the Labor Court finds that the illness is due to the employee's gross negligence, the employer is entitled to a refund of wages paid during the sick leave.
The number of days allowed for the suspension of the contract depends on the employee's seniority.
In El Salvador, employees are entitled to receive up to 16 weeks of paid maternity leave.
The employee must use 10 weeks of maternity leave after the birth of the child. In case of any complications, the leave can be extended in the prenatal period. Employees who have made at least 12 weeks of contributions are eligible for maternity benefits paid by the Social Security System. Maternity benefits are equal to 75% of the employee's basic salary for the duration of maternity leave.
Employees in El Salvador are entitled to 3 days of paid paternity leave, which may be taken within 15 days of the birth of the child (or date of adoptive judgment for adoptive parents). To enjoy this leave, the employee must present a birth certificate or certificate of adoption.
The Salvadoran Labor Code does not require either the employer or the employee to provide notice of termination or resignation. The Code only stipulates that notice must be given in writing. The employer may terminate the employee with or without cause. However, without cause, the employer is liable for an indemnity equivalent to 30 days' pay for an indefinite-term full-time employee and at least 15 days' pay for a part-time employee. The calculation is prorated based on the number of hours worked, but in no case less than 15 days. There is an exception for definite period contracts that are task-specific. Employers must give 7 days' notice if the employee has been working for more than 15 days.
If the parties terminate the contract by mutual agreement or if the employer has cause, the form requirement still applies, but the indemnity paid does not. Employees do not owe employers any indemnity for terminating the contract, and the contract will be terminated at the will of the employee without acceptance by the employer, as long as the written requirement is fulfilled.
For de facto dismissals (dismissals without cause), workers are entitled to receive compensation equivalent to 30 days' pay for each year of service (or portion thereof) with a minimum severance payment of 15 days' pay. The same severance payment is applicable if an employment contract is terminated because the employer breaches its obligations.
No severance payment is due if the dismissal was for a justified reason, such as employee misrepresentation, misconduct, or insubordination.
