Background Checks

Background checks are legal and commonly used in Peru, especially in sectors like finance, healthcare, education, and security. Employers must obtain explicit consent from candidates before conducting checks.

Governed by the Personal Data Protection Law (Law No. 29733). Employers must:

• Respect data minimization principles.
• Avoid discriminatory practices.
• Securely store and process personal data.

Common Checks:

• Criminal records
• Employment and education history
• Professional qualifications
• Social media (increasingly common)
• Credit checks (less frequent)

Verification and New Hire Reporting

SUNAT and EsSalud Registration: Employers must register new employees with the National Superintendency of Tax Administration (SUNAT) and EsSalud for tax and health coverage purposes.

• Electronic Payroll System (PLAME): New hires must be reported through the PLAME system, which is used for payroll and social security reporting.
• Ministry of Labor Notification: In some cases (e.g., foreign workers or fixed-term contracts), the employment contract must be submitted to the Ministry of Labo

Onboarding Process & Documentation

Upon hiring, employers must collect and maintain the following documents:

• Signed employment contract (mandatory for fixed-term, part-time, and foreign employees)
• Copy of the employee’s national ID (DNI) or passport (for foreign nationals)
• Tax Identification Number (RUC or RUC for individuals)
• Social security registration (EsSalud) Bank account details for salary payments
• Health and pension system affiliation (ONP or AFP)

For foreign employees, contracts must be in writing and registered with the Ministry of Labor.

Healthcare

Public Health Insurance (EsSalud)

• Mandatory for all formal employees.
• Employers contribute 9% of the employee’s monthly salary to EsSalud.
• This contribution is entirely employer-funded and not deducted from the employee’s wages.
• EsSalud provides access to public healthcare services, including hospitals and clinics.
• While comprehensive, the public system may face challenges such as long wait times and limited capacity.

Private Health Insurance (EPS)

• Employers may offer private health plans through Entidades Prestadoras de Salud (EPS) to supplement EsSalud.
• The remaining 6.75% continues to go to EsSalud.
• The employer covers the full EPS premium, which varies based on coverage level, employee age, and dependents.
• EPS plans are valued for offering faster access and higher-quality care.

Compliance Requirements

• Timely registration of employees with EsSalud and, if applicable, the EPS provider.
• Accurate and punctual payment of contributions.
• The total employer cost is either 9% to EsSalud or 6.75% to EsSalud + EPS premium.
• When EPS is provided:
• 2.25% of the 9% EsSalud contribution is redirected to the EPS.

Retirement

Peru’s pension system is mandatory and offers two main options:

National Pension System (SNP)

• Managed by the Oficina de Normalización Previsional (ONP).
• Operates on a pay-as-you-go basis.
• Employees contribute 13% of their monthly salary.
• Employers are responsible for withholding and remitting this amount to the ONP.

Private Pension System (SPP)

• Managed by Administradoras de Fondos de Pensiones (AFPs).
• Employees contribute to an individual retirement account.
• Contributions typically total 12–13% of salary, covering:
• Retirement savings
• AFP administrative fees
• Disability and survivor insurance
• Employers must withhold and remit the full contribution to the employee’s selected AFP.

Enrollment and Compliance

• New employees must choose between SNP and SPP.
• If no choice is made within the designated period, the employee is automatically assigned to an AFP.
• Employers must ensure:
  • o Proper registration with ONP or an AFP
  • o Accurate deduction and remittance of contributions

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

Peruvian labor law primarily recognizes two main types of employment contracts: indefinite-term and fixed-term. Indefinite-term contracts are the standard for ongoing, permanent employment. These contracts do not have a specified end date, and termination requires just cause or the payment of severance.

• Fixed-term contracts are used for specific projects, temporary needs, or seasonal work. They must be in writing, legally justified, and include a clearly defined end date.
• Fixed-term contracts are considered exceptions and must be justified by the nature of the work or specific business needs. They cannot be used to fill permanent roles indefinitely. If a fixed-term contract is misused or exceeds legal limits, it may be reclassified as an indefinite-term contract.

Essential Clauses

• Identification of Parties: Full legal names and ID details of both employer and employee.
• Start Date: When the employment relationship begins.
• Job Title and Description: Clear outline of duties and responsibilities.
• Workplace: Primary location of work.
• Working Hours: Daily and weekly schedules, including overtime terms.
• Remuneration: Salary details, payment frequency, and any bonuses or benefits.
• Contract Duration: For fixed-term contracts, the end date or condition for termination.
• Probationary Period: Duration and terms, if applicable.
• Benefits: Statutory entitlements such as vacation, public holidays, and social security contributions.

Probation Period

In Peru, the probationary period must be specified in the employment contract. The standard duration is three months.

However, this period may be extended under certain conditions:

• Up to six months for employees in skilled positions or roles of trust.
• Up to twelve months for employees in managerial or executive roles.

These extensions must be justified and clearly documented in the employment agreement.

Visas

• Tourist Visa: For leisure, up to 183 days.
• Business Visa: Requires an invitation and business agenda.
• Work Visa: Requires a job offer and approval.
• Student Visa: Requires proof of enrollment.
• Investor Visa: Requires proof of investment.

Application Steps:

• Identify visa type
• Prepare documents
• Schedule consulate appointment
• Submit and attend interview
• Await processing and receive visa.

Independent Contractors

Peruvian labor law distinguishes clearly between employees and independent contractors, with different legal implications:

Independent contractors:

• Are not entitled to labor benefits
• Must issue invoices (recibos por honorarios) for services
• Are responsible for their own tax and pension contributions

Contract Requirements
Contracts with independent contractors must be in writing and clearly define:

• The scope of services
• Payment terms
• Duration of the engagement
• Lack of subordination (i.e., the contractor is not under direct supervision or control)

Misclassification Risks
Misclassifying an employee as a contractor can lead to:

• Legal penalties
• Back payment of benefits
• Fines from SUNAFIL

Employers must ensure that contractors operate with autonomy and are not integrated into the company’s regular workforce structure.”

Paid Time Off

Employees in Peru are entitled to 30 calendar days of paid annual leave after completing one full year of continuos service with the same employer.

• At least 15 consecutive days must be taken within the year.
• The remaining days can be:
  • Split into two periods, or
  • Taken in single-day increments.
• Employees may cash out unused days, subject to agreement.
• Domestic workers are entitled to 15 days of paid annual leave.
• Annual leave cannot be combined with other types of leave, such as maternity or sick leave.

Public Holidays

Public holidays that fall on the weekend are moved to the following working day.

• New Year’s Day
• Holy Thursday
• Holy Friday
• Labor Day
• Arica’s Battle and The Flag Day
• Saint Peter and Saint Paul
• Aeroforce Day
• Independence Day
• Independence Day Holiday (Day Off in Lieu)
• Saint Rose of Lima
• Battle of Angamos
• All Saints’ Day
• Immaculate Conception
• Ayacucho’s Battle (Holiday for the public sector)
• Christmas Day

Bereavement

Peruvian labor law does not mandate a fixed national standard for bereavement leave. However, many employers and collective bargaining agreements provide:

• 3 to 5 days of paid leave for the death of a close family member (e.g., spouse, parent, child, or sibling).
• Employees are typically required to notify their employer of the start and end dates of the leave.

Maternity Leave

Female employees are entitled to 98 days of paid maternity leave:

• 49 days before and 49 days after childbirth.
• In cases of multiple births or complications, leave is extended by 30 additional days.
• Maternity benefits are paid by EsSalud or the EPS (if the employee is enrolled in a private health plan).
• To qualify, the employee must have worked at least three months in the six months prior to the leave.
• Adoptive mothers are entitled to 30 days of paid leave for children up to 12 years old.

Paternity Leave

Fathers are entitled to 10 days of paid paternity leave following the birth of a child. This may be extended to 20 days in cases of:

• Premature birth
• Complications during delivery
• Birth of a child with a disability

Parental Leave

Peru’s labor law has no statutory parental leave (beyond maternity and paternity provisions).

Sick Leave

Employees are entitled to up to 365 days of paid sick leave:

• The first 20 days are paid at 100% of the employee’s salary by the employer.
• From day 21 onward, the employer continues payment at 70–80%, which is later reimbursed by EsSalud (the national health system).

Termination Requirements

Employer-Initiated Termination: Employers must provide between 6 and 30 days’ notice, depending on the reason for dismissal and whether it involves disciplinary or objective grounds.

Employee Resignation: Employees are required to give their employer at least 30 days’ notice before resigning.

Notice Period

30 days

Severance Pay

Peruvian law does not provide for general severance pay. However, in cases of unjustified or unfair dismissal—where the employer lacks a legally valid reason—employees are entitled to a statutory indemnity.

Indemnity for Unfair Dismissal:

• For employees under indefinite-term contracts: The indemnity is 1.5 times the employee’s monthly salary for each full year of service. Partial years are compensated proportionally.
• For employees under fixed-term contracts:The indemnity equals 1.5 times the monthly salary for each remaining month until the contract’s end date.

Unemployment Insurance

Peruvian labor law does not provide universal unemployment insurance or monthly unemployment payments for workers who lose their jobs involuntarily. There is no government-run unemployment fund that provides ongoing income support during periods of joblessness

Anti-Discrimination Practices

Peruvian labor law strictly prohibits discrimination in employment across all stages of the employment relationship, including hiring, promotion, training, compensation, and termination. Employers are legally obligated to ensure equal opportunities and fair treatment for all workers.

Employers may not discriminate based on the following attributes:

• Race or ethnic origin
• Religion
• Political opinion or affiliation
• Sex or gender
• Age
• Disability
• Sexual orientation
• Gender identity
• Marital or family status
• Language
• Health status
• Economic condition
• Social origin
• Nationality

These protections are enshrined in the Peruvian Constitution, Law No. 26772, Law No. 29973 (General Law on Persons with Disabilities), Law No. 28983 (Equal Opportunities for Women and Men), and Law No. 30709, which specifically prohibits wage discrimination between men and women

Workplace Safety Standards

Under Law No. 29783 and Supreme Decree No. 005-2012-TR, all companies operating in Peru are required to implement an Occupational Health and Safety Management System (OHSMS). Employers are fully responsible for the economic, legal, and operational consequences of any workplace accident or occupational illness that occurs during or as a result of employment.

Workers’ Compensation

Employers are required to:

• Implement an Occupational Health and Safety Management System based on a risk assessment and workplace hazard map.
• Maintain detailed records of:
  • Work accidents and occupational illnesses
  • Medical evaluations and health monitoring
  • Safety inspections and emergency drills
• Provide mandatory insurance coverage for workplace accidents and occupational diseases.
• Report all workplace accidents to the relevant authorities and EsSalud.

Coverage and Benefits
If a worker suffers a work-related injury or illness, they are entitled to:

• Medical care and rehabilitation through EsSalud
• Temporary disability benefits (a percentage of salary)
• Permanent disability compensation (based on degree of impairment)
• Survivor benefits for dependents in case of death

Liability and Compensation

Employers may be held civilly liable if:

• The injury or illness resulted from a failure to comply with safety obligations
• There is evidence of negligence or lack of preventive measures

In such cases, courts may order:

• Additional compensation beyond social security benefits
• Reinstatement or job reassignment if the worker can no longer perform their original duties

Labor Law Sanctions

General Labor Law: Sets rules for contracts, work hours, pay, and firing. You may be fined or have to pay extra to employees.

SUNAFIL (Labor Inspector): Checks if companies follow labor laws. If you don’t comply: You can be fined up to S/241,638 (~USD $65,000).

Profit Sharing Law: Companies must share part of their profits with workers. Sanctions include fines and possible lawsuits.

Occupational Health and Safety Law: Requires safe working conditions and accident prevention. Employers can be fined or even face criminal charges if someone is hurt.

Teleworking Law: Sets rules for remote work (like breaks and work hours). Employers may be fined or required to fix the issue.

Anti-Discrimination and Harassment Laws: Protects workers from unfair treatment and abuse. Sanctions include fined and forced to change your company policies.