Background Checks

Employers may perform background checks (e.g., verifying criminal records, employment history, and education) on prospective employees.

• Such checks must be conducted in compliance with data protection and privacy laws to ensure that candidates’ personal rights are respected.
• The scope of these checks should be directly relevant to the job’s requirements, avoiding any unnecessary invasion of privacy.

Verification and New Hire Reporting

Employers are required to verify the authenticity of the submitted documents.

• New employee data must be promptly reported to the relevant government agencies—typically through the Ministry of Labor, Employment, and Social Security (MTESS) or related bodies.
• These steps ensure that all necessary registrations are completed in compliance with Bolivian labor and social security regulations.

Onboarding Process & Documentation

Employers must verify key documents from new hires, including identification, educational and professional qualifications, and, where applicable, work permits or visas.

• Written employment contracts or confirmation of employment details are essential to ensure clarity and legal compliance.

Healthcare

Bolivia operates a mandatory social security system that includes comprehensive health coverage provided through the Cajas de Salud (Health Funds). Both employers and employees contribute a percentage of the employee’s salary to fund this system, which grants access to essential medical services such as doctor visits, hospitalization, and medication.

Employers are responsible for registering their employees with the appropriate Caja de Salud and ensuring that contributions are made on time. In turn, employees gain the right to receive care at the facilities linked to their registered Caja.

Because the public system can sometimes struggle with capacity or specialized care needs, private health insurance has become a highly valued benefit. Many employers collaborate with private insurers to offer supplementary plans that provide access to a broader network of private hospitals and clinics, thereby reducing wait times and expanding available options. Although private insurance is not legally required, it is often seen as a strong competitive advantage, especially for roles in multinational companies or high-skilled positions. Typically, the costs of private group insurance plans are shared between the employer and employee, with employers usually covering a significant portion of the expense.

Retirement

The retirement system is governed by the Sistema Integral de Pensiones (SIP), which operates as a defined contribution scheme managed by private Pension Fund Administrators (AFPs). Under this system, both employers and employees make mandatory monthly contributions into individual retirement accounts overseen by these AFPs.

The required contributions include:

• Individual Contribution: A portion of the employee’s salary deducted by the employee.
• Employer Contribution: A percentage of the employee’s salary provided by the employer.
• Occupational Risk Contribution: Paid by the employer to cover job-related hazards.
• Solidarity Fund Contribution: A payment into a collective fund.

Employers must ensure that these contributions are calculated accurately and remitted promptly to the designated AFP. The balance accumulated in each employee’s account, along with the returns on their investments, forms the foundation of their retirement pension.

While there are supplementary private retirement plans in some countries, Bolivia primarily relies on the mandatory SIP contributions. Consequently, employees expect their employers to consistently and correctly fulfill these payment obligations.

Social Security

Additional details regarding Social Security Codes are not currently available from Vensure.

Employment Contract Details

Bolivian law recognizes two primary types of employment contracts—indefinite-term and fixed-term—with the choice determined by the nature of the work and the intended duration of the employment.

• Indefinite-Term Contracts: These are the standard form of employment in Bolivia. Such contracts do not specify an end date and are assumed to continue until terminated by either party according to legal grounds and procedures. This type of arrangement offers the highest level of job security for the employee.
• Fixed-Term Contracts: Fixed-term contracts are designed for employment lasting a predetermined period or for the completion of a specific task or project. Bolivian law limits the use of these contracts to situations where the temporary nature of the work is justified. If an employee repeatedly works under fixed-term contracts in the same role—especially if the cumulative duration exceeds one year or if there is no legitimate temporary reason—the contract may be reclassified as indefinite by law.

In addition, regardless of the contract type, Bolivian labor law mandates that employment agreements must include specific mandatory details to ensure legal validity and enforceability. Although a written contract is highly recommended for clarity and record-keeping, certain elements are legally presumed even without one. These key terms include:

• Identification details of both the employer and the employee
• The job title and a description of the employees’ duties and responsibilities
• The location where the work will be performed
• The agreed-upon salary or wage, including payment frequency and method
• The standard working hours and schedule
• The employment start date
• For fixed-term contracts, the specified end date or the event that triggers termination
• Details regarding any benefits provided beyond statutory minimums

Probation Period

The probationary period is 90 days.

Visas

At this time, Vensure does not have visa details available.

Independent Contractors

Bolivian labor law differentiates between traditional employees and independent contractors.

• Independent contractors work under private agreements rather than standard employment contracts.

Benefits and Responsibilities:

• They do not automatically receive statutory benefits such as paid leave, social security, or severance pay that employees enjoy.
• Independent contractors are responsible for their own tax obligations and social security contributions.

Misclassification Oversight:

• Authorities and courts may review and potentially reclassify work arrangements if an individual deemed an independent contractor is found to be effectively performing employee functions.

Paid Time Off

Employees are entitled to paid annual leave based on their length of service.

• 1-5 years of service: 15 working days
• 5-10 years of service: 20 working days
• Over 10 years of service: 30 working days

Public Holidays

• New Year’s Day
• Plurinational State Day
• Carnival (two days)
• Good Friday
• Labor Day
• Corpus Christi
• Aymara New Year
• National Day
• All Souls’ Day
• Christmas Day

Bereavement

Bolivian law does not expressly mandate bereavement leave.

Maternity Leave

All female employees are entitled to comprehensive maternity benefits. They receive 90 days of paid maternity leave—divided equally into 45 days before the expected due date and 45 days after childbirth.

• The maternity benefit is calculated at 100% of the national minimum wage.

Paternity Leave

Fathers are entitled to mandatory paid paternity leave of 3 days.

Parental Leave

Parental leave is not required by law.

Sick Leave

All employees are entitled to up to 26 weeks of paid sick leave each year, provided that they submit a medical certificate within 48 hours of the onset of illness. Starting on the fifth day of sickness, employers pay sick leave at 100% of the regular salary rate, with 75% of this amount reimbursed by the social security system.

Termination Requirements

At this time, Vensure does not have termination requirement details available.

Notice Period

Bolivian labor law says there is no mandatory notice period.

Severance Pay

Severance pay is mandatory if applicable. Still, the amount differs based on the type of termination, i.e., termination by an employee, termination by mutual agreement, termination without cause, and termination with a cause in an indefinite term agreement and fixed-term agreement. Qualify for severance benefits.

• Employees are generally entitled to one month’s salary for each full year of service.
• The monthly salary used in the calculation is usually the average total remuneration received during the last three months before termination.
• In cases of termination without just cause, employers may also be required to pay an additional compensation, often referred to as “desahucio,” which can equate to a set amount (commonly three months’ salary) in lieu of a notice period.

Unemployment Insurance

Bolivia does not offer a separate unemployment compensation scheme that provides ongoing income support for workers during periods of unemployment.

Anti-Discrimination Practices

Non-Discrimination Bolivian law strictly prohibits discrimination in employment. Employers must offer fair opportunities in hiring, promotion, training, and all other employment practices.

Protected Characteristics:

• These include race, ethnicity, origin, nationality, language, sex, gender identity, sexual orientation, age, civil status, religion, political opinion, ideology, physical or mental disability, economic status, social status, and any other condition that could lead to discrimination.

Workplace Safety Standards

Employers in Bolivia are legally required to ensure a safe and healthy work environment. This responsibility involves proactive safety measures, provision of necessary equipment, and adherence to industry-specific regulations. Key aspects include:

• Identify and address workplace hazards through effective risk mitigation strategies.
• Supply appropriate personal protective equipment to employees at no cost.
• Ensure all machinery and equipment are maintained in safe, operational condition.
• Implement and enforce safety procedures, including training sessions on safe work practices.
• Keep work areas clean and hygienic to promote overall safety.
• Investigate any workplace accidents and apply corrective measures to prevent future occurrences.

Employees must cooperate by following established safety procedures, using the provided PPE, and promptly reporting any hazards they encounter.

The Ministry of Labor and relevant regulatory bodies conduct inspections and investigations to ensure that employers comply with these health and safety regulations.

Workers’ Compensation

Bolivian law ensures that employees injured on the job or who contract occupational diseases are eligible for compensation.

• Medical treatment and rehabilitation services.
• Temporary or permanent disability payments, depending on the severity and duration of the injury.
• Survivor benefits in cases of work-related fatalities.

Funding and Administration:

• Employer contributions to the national social security system help finance workers’ compensation benefits.
• The system is overseen by relevant authorities, including the Ministry of Labor, Employment, and Social Security, ensuring compliance with established statutes.

Claim Process:

• Workers must report workplace accidents or illnesses promptly.
• Claims require the submission of detailed documentation, such as accident reports and medical certificates.
• Once validated, compensation is administered in accordance with the injury’s extent and the guidelines under Bolivian labor laws.

Labor Law Sanctions

General Labor Law (Ley General del Trabajo): This law outlines various obligations for employers, such as providing employment contracts, paying timely wages, and ensuring a safe work environment. Non-compliance can result in fines, sanctions, or legal actions

Minimum Wage Laws: Employers are required to pay at least the minimum wage, which is periodically reviewed and updated. Failure to comply can lead to significant penalties

Working Hours and Overtime: The standard workweek is 48 hours, and any overtime must be compensated at a premium rate. Violations can result in fines and other sanctions

Health and Safety Regulations: Employers must ensure a safe working environment. Non-compliance with health and safety standards can lead to administrative measures, fines, and legal action.