S/. 3.298 pen

Hiring Venezuelan Employees in Peru

As foreigners acquainted with the Peruvian immigration system, many investors are already aware of the ongoing crisis in Venezuela. Indeed, given the current influx of Venezuelan immigrants the Peruvian government has passed Supreme Decree N° 01-2018-IN (hereinafter the “Law”), which allows Venezuelan immigrants, who legally enter the country before December 31st 2018, to apply for a Temporary Residency Permit (hereinafter “PTP”).

It should be noted, that the residency granted by means of the PTP differs from the residency granted by the standard Foreign ID Card (Carné de Extranjería) given to other foreigners. To begin with, we must stress the point that the PTP is extraordinary in nature: it is only available to Venezuelan citizens who enter the country before December 31st 2018, and the procedure itself will only be available until June 30th 2019. The PTP allows the beneficiary to reside in Peru for one (01) year, renewable for the same period.

Regarding the benefits granted to PTP beneficiaries, Article 12° of the Law establishes that the beneficiaries shall not be subject to labor restrictions. However, this does not mean that they are exempt from the percentage limits established by Peruvian law, which state that foreign employees may not exceed 20% of the personnel of a Peruvian company, and their combined salaries may not exceed 30% of the company payroll.

Indeed, where these restrictions are concerned the Peruvian Ministry of Labor has established that PTP beneficiaries do not need to submit their contract for approval in order to work in Peru. Likewise, as recently established by Superintendence Ruling N° 165-2018-MIGRACIONES, this exemption extends to PTP applicants as well. As stated in the ruling, PTP applicants may request a Provisional Work Permit (Acta de Permiso de Trabajo Extraordinario-Provisional) from the National Superintendence of Immigration (MIGRACIONES), which will allow them to work for a period of sixty (60) days, automatically renewable for the same period or until their PTP application is finished.

However, as previously indicated, it should be noted that whilst PTP beneficiaries and applicants with a Provisional Work Permit do not require the approval of their work contract, they are still subject to the percentage limits regarding the hiring of foreign workers, established by Peruvian law. Consequently, any company found in violation of the law will receive a fine of no less than PEN 5,602.50 (around USD 1,718.55), or PEN 456.50 in the case of Micro and Small Enterprises, as established by Article 48.1° of Supreme Decree N° 019-2006-TR.

Thus, employers should ensure that they are complying with the aforementioned percentage limits in order to avoid any fines for violating Peruvian labor legislation. We will update this information in the future, should any changes to the relevant legislation be introduced.

Alternatively, the Ministry of Labor also grants a temporary exemption for Venezuelan citizens.

By the Immigration and Labor Department at RGB Avocats © – Peruvian Attorneys-at-Law

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