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Thread: 3 Extra days granted for time off to workers

  1. #1

    Default 3 Extra days granted for time off to workers

    http://www.laprensa.com.ni/archivo/2...a/292946.shtml

    The "Ministerio del Trabajo", today declared that due to the upcoming elections the days : Friday, November 7th, Saturday November 8th, and Monday November 10th are days of rest, no work, full salary paid. (and Sunday is Election day)

    The only exceptions to this are as stated in the "Codigo del Trabajo" which goes into those jobs which can't be interrupted for holidays and vacations. In these circumstances the employers must give time to their staff to go and vote.

  2. #2
    TRN Surgeon General El Doc's Avatar
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    Holidays? Weekends? What are those?

    I've been in healthcare too long.
    "Un Estado que no se rigiera según la justicia se reduciría a una gran banda de ladrones." --San Agustín

  3. #3
    Viejo del Foro bikingo's Avatar
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    I'd like to add them up but I think Nicaragua may already have more paid holidays than any other country, which is great if your not the one paying for the holidays.

  4. #4

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    Heres the official document on the days off by Mitrab

    http://www.mitrab.gob.ni/index/AcJCHG-012-11-08.pdf

  5. #5
    Fightin Irish JackMcG's Avatar
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    But who in Nicaragua actually qualifies for these "holidays".... not any of my wife's family... one is a domestic, another self employed, another a farm worker, another was never put on the "planilla", another is in construction... etc... they never seem to get holidays with pay nor their "aguinaldo"..... maybe it's just for the government workers ?
    "If you ain't bleeding, you ain't working!"

  6. #6

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    Quote Originally Posted by JackMcG View Post
    But who in Nicaragua actually qualifies for these "holidays".... not any of my wife's family... one is a domestic, another self employed, another a farm worker, another was never put on the "planilla", another is in construction... etc... they never seem to get holidays with pay nor their "aguinaldo"..... maybe it's just for the government workers ?
    ANYONE! if your domestic says that she/he wants off or expects to get off, you might want to give it off to them, and pay them as well, or they can go to Mitrab.

    The self employed one... well hes out of luck!

  7. #7
    Active TRN Member marnica's Avatar
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    Quote Originally Posted by 3 frijoles View Post
    http://www.laprensa.com.ni/archivo/2...a/292946.shtml

    The "Ministerio del Trabajo", today declared that due to the upcoming elections the days : Friday, November 7th, Saturday November 8th, and Monday November 10th are days of rest, no work, full salary paid. (and Sunday is Election day)

    The only exceptions to this are as stated in the "Codigo del Trabajo" which goes into those jobs which can't be interrupted for holidays and vacations. In these circumstances the employers must give time to their staff to go and vote.
    And after he saw what he had created and said this is good. Then God said this the 5th 6th 8th day a day of rest and declared 7th day devoted on to himself . So sayth the Lord DOS.

  8. #8

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    As an employer of 8, I feel this is utter BS. I am by no mean an expert on Nicaraguan labor law, but how is it that Ministerio del Trabajo can act independently and make up these ridiculous "laws" just a few days before the elections? And for crying out loud, these are municipal elections!

    I understand why so many employers pay minimum wage. This new law brings paid holidays up to 14 days, a month of pay for Christmas bonuses, and a month minimum paid vacation. Add a pregnant woman to the mix and you are also out three months of maternity leave. I actually have an employee that just gave birth. This year she gets 4 1/2 months off and gets paid for 5 1/2 months of wages during said time off. On top of that, there is social security, which is a 22 percent payroll tax (higher if you have employees making more than 4500 cordobas a month). Then there is the month of severance for each year worked, which you must pay even if your employee was stealing from you and you filed a denuncio. (Thankfully, that hasn't happened to me. The stealing part.) On top of this, it takes more Nicaraguans to perform a particular job than is really necessary, adding another person or two to your payroll.

    DGI want 15 percent sales tax, 1 percent of your gross sales, and 30 percent tax on corporate profits (20 percent of you are Nicaraguan or have residency). Oh, if you pay an invoice over 500 cordobas, you must retain 2 percent of the IVA and file a retencion and if you are late or screw up, you will most likely get a fine if the folks at DGI don't like you. The municipalities will hit you up for their one percent, the sign tax, the garbage tax...the list goes on an on. Then you will be hit up for fundraisers for the police, schools, and orphans. If you have property, you will have property taxes.

    A lot of people say, "Labor is so cheap!" but it's not.
    "In the world through which I travel, I am endlessly creating myself." - Franz Fanon

  9. #9

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    I would check into this with a Mitrab rep or someone that knows the law better, but there are certain jobs that could allow for you to continue operating during this prescribed time off. It may get into extra pay or something along those lines.

    I agree with you though, trying to keep up with all of these days off and all the extras you have to pay an employee is ridiculous, even with our help in the house it gets to be such a pain.

  10. #10

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    I am actually surprised that Nicaraguan Citizens aren't getting 3 days off for the US elections too! hahahaha.

  11. #11

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    Quote Originally Posted by Kelly Ann Thomas View Post
    A lot of people say, "Labor is so cheap!" but it's not.
    Respectfully, Kelly, Knowing what you now know about the mysterious expenses of doing business in Nicaragua, including those items you noted all the way through legal expenses of getting sued, gifts required in order to not be robbed by certain people, etc, do you still feel that you have been able make money while doing business honestly in Nicaragua?

    Peter

  12. #12
    Para aquí para acá Jonh's Avatar
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    We have all those expenses in the US, too; they're merely codified as local, state, and federal regulations. We are just as aghast at the greed and corruption of our government to put us through that as you are with Nicaragua to put you through this.

    I have a client from Ethiopia who's opening convenience stores in town. He cannot believe he has to go through so much government red tape just to open a simple small store.

  13. #13

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    COSEP is standing up for you Kelley!

    http://www.laprensa.com.ni/archivo/2...a/292981.shtml

    "Consejo Superior de la Empresa Privada" (Cosep) is asking MITRAB to just make the days of rest just Monday, as always.

    Wilfredo Navarro (liberal diplomat) also calls the 3 days an irresponsible decision.

    "Cámara de Comercio Americana de Nicaragua" (AMCHAM) calls the 3 days "Suspicious", they believe that they are trying to get the people to go on vacation and get into some sort of rut where they will end up not going out to vote.

    Cosep says that this is a hard hit to the competitiveness of the country and one example of how hard it can hit a company is a Zona Franca example.

    One company in Zona Franca with 1,500 workers will disburse an extra U$42,000 dollars because they have to meet their demands and can not shut down, causing them to have to pay extra.

  14. #14

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    Here in the University, if we teachers don't work, we don't get paid. I think it is the office staff who'll get the time off with pay, but they make less than the teachers. I'd actually like to have this Saturday off to spend with my family.

    As far as domestics go, they get so little time off. Every other week they get two days, whoopee. What'll happen is that my employees will want to work and will accept the extra pay. They'll also get the time to vote on Sunday.

    I know that it hurts places like Zona Franca. I guess that's the cost of slave labor when you want to get those $3 and $6 shirts at Walmart that are made in Nicaragua.

  15. #15

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    Quote Originally Posted by Kelly Ann Thomas View Post
    As an employer of 8, I feel this is utter BS. I am by no mean an expert on Nicaraguan labor law, but how is it that Ministerio del Trabajo can act independently and make up these ridiculous "laws" just a few days before the elections? And for crying out loud, these are municipal elections!

    I understand why so many employers pay minimum wage. This new law brings paid holidays up to 14 days, a month of pay for Christmas bonuses, and a month minimum paid vacation. Add a pregnant woman to the mix and you are also out three months of maternity leave. I actually have an employee that just gave birth. This year she gets 4 1/2 months off and gets paid for 5 1/2 months of wages during said time off. On top of that, there is social security, which is a 22 percent payroll tax (higher if you have employees making more than 4500 cordobas a month). Then there is the month of severance for each year worked, which you must pay even if your employee was stealing from you and you filed a denuncio. (Thankfully, that hasn't happened to me. The stealing part.) On top of this, it takes more Nicaraguans to perform a particular job than is really necessary, adding another person or two to your payroll.

    DGI want 15 percent sales tax, 1 percent of your gross sales, and 30 percent tax on corporate profits (20 percent of you are Nicaraguan or have residency). Oh, if you pay an invoice over 500 cordobas, you must retain 2 percent of the IVA and file a retencion and if you are late or screw up, you will most likely get a fine if the folks at DGI don't like you. The municipalities will hit you up for their one percent, the sign tax, the garbage tax...the list goes on an on. Then you will be hit up for fundraisers for the police, schools, and orphans. If you have property, you will have property taxes.

    A lot of people say, "Labor is so cheap!" but it's not.
    And you opened a business in this country? Thank God I am retired here.

  16. #16

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    *****UPDATE*****

    http://www.laprensa.com.ni/archivo/2...a/293066.shtml

    The "Ministerio del Trabajo" (Mitrab) modified their decision.

    Friday, November 7th and Saturday, November 8th will be days of rest, taken from vacation days.

    Monday, November 10th is still a day of rest with Pay.

  17. #17
    Viejo del Foro bikingo's Avatar
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    Quote Originally Posted by Kelly Ann Thomas View Post
    As an employer of 8, I feel this is utter BS. I am by no mean an expert on Nicaraguan labor law, but how is it that Ministerio del Trabajo can act independently and make up these ridiculous "laws" just a few days before the elections? And for crying out loud, these are municipal elections!

    I understand why so many employers pay minimum wage. This new law brings paid holidays up to 14 days, a month of pay for Christmas bonuses, and a month minimum paid vacation. Add a pregnant woman to the mix and you are also out three months of maternity leave. I actually have an employee that just gave birth. This year she gets 4 1/2 months off and gets paid for 5 1/2 months of wages during said time off. On top of that, there is social security, which is a 22 percent payroll tax (higher if you have employees making more than 4500 cordobas a month). Then there is the month of severance for each year worked, which you must pay even if your employee was stealing from you and you filed a denuncio. (Thankfully, that hasn't happened to me. The stealing part.) On top of this, it takes more Nicaraguans to perform a particular job than is really necessary, adding another person or two to your payroll.

    DGI want 15 percent sales tax, 1 percent of your gross sales, and 30 percent tax on corporate profits (20 percent of you are Nicaraguan or have residency). Oh, if you pay an invoice over 500 cordobas, you must retain 2 percent of the IVA and file a retencion and if you are late or screw up, you will most likely get a fine if the folks at DGI don't like you. The municipalities will hit you up for their one percent, the sign tax, the garbage tax...the list goes on an on. Then you will be hit up for fundraisers for the police, schools, and orphans. If you have property, you will have property taxes.

    A lot of people say, "Labor is so cheap!" but it's not.
    Kelly, you might want to open up a service to consult foriegn investors wishing to operate in Nicaragua. When I started operating a business in Nicaragua I thought my lawyer had prepared me.:LMAO: The business landscape changes daily and it seems the workers know the system better than many employers. Most Local employers pay their workers 60% of what they could after factoring in aguilaldas, vacaciones etc. I was advised to hire people for 59 days and then let them go before they qualify for benefits, but it seemed pretty underhanded and it takes us about 4 months to train somebody in our work. That said, our workforce was never as much of a problem as corruption, mafia mentality and infrastructure. In twenty years at least they've improved their infrastructure.

  18. #18

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    If I had to do this all over, I would. Setting up a business here has been an illuminating experience. I have the same problems as any small business owner, but amplified because I live in a socialist society in the third world. I knew this coming in. I knew most of the labor laws, too. Productivity, or lack thereof, is something I wasn't prepared for.

    I am fortunate that I have a staff that I love, trust, and adore. They work harder and more efficiently than most people in this town. Sometimes they drive me crazy. However, I trust them with my business. Most of them have worked for me for three years. I went on a 2 1/2 month round the world trip with no contact via email for days on end and felt comfortable leaving them in charge of my business. I only know a handful of people who could do this.

    I also pay for college for four of five employees, provide nice little perks and presents, and pay bonuses when we have really good months. They all make a lot more than minimum wage and do quite well in tips. Some might say I am buying their loyalty, but I see it as rewarding them for a job well done.

    I pay my taxes and I am one of the few businesses that goes about this honestly. I know what other people are paying. I am absolutely enraged by the concept of cuota fija. I know businesses that do four times my sales and do not collect IVA and pay 500 cords a month.

    I continue doing what I am doing because I am making money and I love my store. I make bank deposits. I have a very nice life. I get to meet people from all over the world. I have invitations to visit new friends in more than twenty countries. I have fascinating conversations about just any topic under the sun. I also have interesting stories, which are priceless. I have seating for fifty people inside and during the busy season there are waits for tables and chairs. I made four trips back to the US last year to procure books. I am doing okay. I have a nice life.

    It's not easy, though, and I know a lot of people who couldn't make it here.

    It's still far easier to business here than the United States or Europe. My complaint with the taxes is that they put the burden on too few people, which results in fewer profits for successful businesses and in turn lower wages for employees because we are subsidizing the 2 million who aren't working.

    I have more to say, but I will save that for one of my many unfinished blog entries.
    "In the world through which I travel, I am endlessly creating myself." - Franz Fanon

  19. #19

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    Quote Originally Posted by Kelly Ann Thomas View Post
    I have more to say, but I will save that for one of my many unfinished blog entries.
    The last time I saw you, those bastards were making you inventory your books. We're rooting for you - you operate a fine, first rate shop!

  20. #20

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    The inventory just sucks. It is a good project, though, and at least I know what has sold and what has been lifted from the shelves from backpackers who believe that operating a for-profit bookstore is evil.
    "In the world through which I travel, I am endlessly creating myself." - Franz Fanon

  21. #21
    Active TRN Member marnica's Avatar
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    Thanks for sharing Kelly. Really appreciate it. The good and the bad.

  22. #22
    TRN Surgeon General El Doc's Avatar
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    Quote Originally Posted by Kelly Ann Thomas View Post
    The inventory just sucks. It is a good project, though, and at least I know what has sold and what has been lifted from the shelves from backpackers who believe that operating a for-profit bookstore is evil.
    Hippies are strange, aren't they?
    "Un Estado que no se rigiera según la justicia se reduciría a una gran banda de ladrones." --San Agustín

  23. #23
    Active TRN Member renco's Avatar
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    Quote Originally Posted by Kelly Ann Thomas View Post
    The inventory just sucks. It is a good project, though, and at least I know what has sold and what has been lifted from the shelves from backpackers who believe that operating a for-profit bookstore is evil.
    The many pleasures of having backpackers as customers. The rugged individualists that gather in packs, living life as cliches of independent people yet driven by the holy scripture of the Lonely Planet.
    You'll excuse me, gentlemen. Your business is politics, mine is running a saloon.
    Casablanca-1942

  24. #24

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    Quote Originally Posted by renco View Post
    The many pleasures of having backpackers as customers. The rugged individualists that gather in packs, living life as cliches of independent people yet driven by the holy scripture of the Lonely Planet.
    haha. thats a good one!

  25. #25

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    "The many pleasures of having backpackers as customers. The rugged individualists that gather in packs, living life as cliches of independent people yet driven by the holy scripture of the Lonely Planet."
    __________________
    I am going to use that line in my writing someday...but not until I am a former bookstore owner for fear of alienating my guests.
    "In the world through which I travel, I am endlessly creating myself." - Franz Fanon

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