Page 2 of 3 FirstFirst 123 LastLast
Results 26 to 50 of 73

Thread: Laws in Nicaragua ??

  1. #26
    Pinolero De Cepa!! FisherCigarman's Avatar
    Join Date
    Jan 2007
    Location
    Casares/Estelii, Nicaragua
    Posts
    2,073
    Blog Entries
    13

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    Fellas:

    After having dealt with and having to deal with around 300 +/- employees, here is the way I understand things:
    -The only "constancia" that obliges an employer to pay any days, with the maximum being 3 days, is one from the INSS.
    NOT so, let's remember that labor laws are different if you are under zona franca regime and regular employer

    Quote Originally Posted by RGV AG View Post
    -Those other constancias are not worth the paper they are written on, in terms of getting a paid day or days. Save for, and this is nebulous, when the employee is in the first month of their job and do not have INSS.
    Disagree as well, ANY constancia if taken to MITRAB can get you into trouble,unless you have a separate doctor for the employeer,than only the Employer's Doctor constancia is acceptable .

    Quote Originally Posted by RGV AG View Post
    -After the 3rd day or if the "subsidio" is for more than 3 days the INSS will pay the worker 60% of their wage. Legally, the employer is not obligated to pay the remaining 40%, but in some places they do.
    NOT SO man, that 40% is mandated,once INSS has paid their share(60%) what is not mandated,is that the employer pay their 40% prior to INSS kicking in.


    Like I said,I don't know if your expertise is under Zona Franca or not, but under ordinary cimcunstances the employer is liable, so it's just best to avoid any headaches and do what's REQUIRED by labor laws(if you have over 300+ employees,chances are YOU ARE under Zona Franca,thus a bit diff labor laws regime for ya).

  2. #27
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Cigar/F:

    I will do some more research tomorrow and post what I can find. I can only go by our "Reglamento Interno de Trabajo" that is approved by the MITRAB. But, the labor law is the same for all employees in Nicaragua, no matter what industry or what segment of the economy. There are specific rules/regulations for specific jobs, i.e. maritime work and such.

    Please see the below:

    CAPÍTULO VIII
    Subsidios de Enfermedad, Maternidad y Riesgos Profesionales

    Artículo 92.- Los trabajadores asegurados comprendidos en el Artículo 90, en los casos de Enfermedad, Maternidad y Riesgos Profesionales, tendrán derecho a disfrutar de un subsidio por incapacidad temporal de acuerdo a las normas señaladas en los artículos siguientes.

    Artículo 93.- Cuando la enfermedad que sufra un asegurado activo o cesante produzca incapacidad para el trabajo comprobada por los servicios médicos del Sistema Nacional Único de Salud, disfrutará mediante órdenes de reposo de un subsidio equivalente al 60% de la categoría en que esté incluido el promedio de las últimas ocho cotizaciones semanales dentro de las veintidós semanas anteriores a la fecha inicial de la incapacidad. El subsidio se otorgará mientras dure la incapacidad y se pagará a partir del cuarto día de incapacidad y mientras dure esa situación hasta el plazo de cincuenta y dos semanas.

    En los casos de enfermedad que requieran hospitalización y en los accidentes, el subsidio se pagará desde el primer día de la incapacidad.

    Las órdenes de reposo por incapacidad para el trabajo no podrán ser por períodos mayores de treinta días.

    Artículo 94.- Tendrán derecho al subsidio de descanso por maternidad la trabajadora asegurada que acredite dieciséis cotizaciones semanales dentro de las últimas treinta y nueve semanas que precedan a la presunta fecha del parto.

    Artículo 95.- El subsidio de descanso por maternidad será equivalente al 60% de la remuneración semanal promedio, calculado en igual forma señalado para el subsidio de enfermedad y se otorgará durante las cuatro semanas anteriores y las ocho semanas posteriores al parto, que serán obligatorias descansar.

    Artículo 96.- La fecha presunta del parto será determinada por los servicios médicos que comprueben el embarazo y servirá de referencia para el otorgamiento de los beneficios.

    Cuando el parto sobrevenga después de la fecha presunta señalada por los servicios médicos, el descanso pre-natal será prolongado hasta la fecha del parto, sin que proceda reducir el período post-natal de ocho semanas.

    Cuando el parto sobrevenga antes de la fecha prevista, el período faltante se acumulará al período post-natal señalado.

    Artículo 97.- Durante los primeros seis meses de vida del niño se otorgará un subsidio de lactancia, con sujeción a las siguientes normas:

    a) Se fomentará la lactancia materna.

    b) Si el hijo es amamantado, el Servicio Médico Pediátrico suministrará productos adecuados para mantener en buen estado la salud de la madre.

    c) Si el hijo no es amamantado, será dado preferentemente en leche de calidad, cantidad e indicaciones que determine el Servicio Médico Pediátrico.

    En ambos casos podrá determinarse la sustitución del producto con el equivalente en dinero entregado directamente a la madre del niño.

    Artículo 98.- En caso de muerte de la madre, o en su ausencia, se entregará el subsidio de lactancia a la persona que tenga a su cargo al niño.

    Se suspenderá el subsidio si la madre o quien la sustituye infringe las instrucciones que impartan los Servicios Médicos Pediátricos para el control periódico y oportuno del niño.

    Artículo 99.- El asegurado que haya sufrido Accidente de Trabajo o Enfermedad Profesional y se encuentre en estado de incapacidad temporal para el trabajo, tendrá derecho a partir del día siguiente del riesgo a un subsidio diario igual al 60% del salario promedio calculado en igual forma que el subsidio por enfermedad común.

    Si el accidente ocurriera antes del período prescrito el promedio diario será el que corresponda a las semanas cotizadas y a falta de éstas, con la categoría de salario contractual del asegurado.

    La remuneración del día del accidente estará íntegramente a cargo del empleador.

    Artículo 100.- El subsidio se concederá por días y se liquidará por períodos no mayores de treinta días y se otorgará mientras dure la incapacidad. Sin embargo, al cumplir cincuenta y dos semanas de subsidio, la Comisión de Invalidez, previa opinión de su médico tratante, dictaminará si procede o no la prórroga o procede tramitársela una pensión de incapacidad permanente del asegurado.

    Artículo 101.- El monto de los subsidios de enfermedad, maternidad y riesgos profesionales en ningún caso podrá exceder del salario máximo señalado para los servidores públicos, salvo que el asegurado haya cotizado continuamente durante los seis meses anteriores a la prestación. Se suspenderán los subsidios cuando el asegurado o asegurada no acepte, infrinja o abandone el tratamiento o reposo prescrito.

    check out this link also, it is long but it describes the conditions for the subsidios http://www.google.com/url?sa=t&sourc...hD46FLFp-AEK6A

    There is a little ambiguity about the maternity leave stuff.

    If an employee bring you a constancia from a "clinic" and you want to fire him/her and not give validity to the constancia in terms of severance, then you might have a MITRAB problem, might. But, in terms of paying him/her for the missed work you are not under any obligation, or at least I can't find where this is. As the MITRAB people will attest, that is what the INSS both parties pay into is for.

    The INSS will not pay a subsidio unless it is longer than 4 days.

    Again, the 40% co-pay, only on INSS approved subsidios, is not clear and is not the custom of most employers that I know of, ZF or not. But it is not mandated by any law when it comes to a constancia from a party other than the INSS.

    The Nicaraguan labor law and INSS law are sometimes contradictory and often times very ambiguos. That is why an approved "Reglamento Interno de Trabajo" is so important, if the MITRAB approves your rules and policies before you start, then will have a hard time going back on what they, themselves, have already approved. Our policy is approved by them, so that is what I go by.

    One thing, there is lots of supposition, innuendo, and misinformation about the Nicaraguan labor law. Lots of folks claim certain things, without any basis in fact. I have been a victim to this and that is why I have paid for black and white legal opinions. Before I openend a company here, I read The Codigo del Trabajo from start to finish, and found that when applied fairly it was not too bad or too terribly slanted.

    Also, subsidios for the runs are different from subsidios from having your finger cut off, those take on a whole other light.

    Sorry this got so long.

    Hey, have you been fishing lately? I have not seen you posting too much about that lately.

  3. #28

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    Cigar/F:

    I will do some more research tomorrow and post what I can find. I can only go by our "Reglamento Interno de Trabajo" that is approved by the MITRAB. But, the labor law is the same for all employees in Nicaragua, no matter what industry or what segment of the economy. There are specific rules/regulations for specific jobs, i.e. maritime work and such.

    Please see the below:

    CAPÍTULO VIII
    Subsidios de Enfermedad, Maternidad y Riesgos Profesionales

    Artículo 92.- Los trabajadores asegurados comprendidos en el Artículo 90, en los casos de Enfermedad, Maternidad y Riesgos Profesionales, tendrán derecho a disfrutar de un subsidio por incapacidad temporal de acuerdo a las normas señaladas en los artículos siguientes.

    Artículo 93.- Cuando la enfermedad que sufra un asegurado activo o cesante produzca incapacidad para el trabajo comprobada por los servicios médicos del Sistema Nacional Único de Salud, disfrutará mediante órdenes de reposo de un subsidio equivalente al 60% de la categoría en que esté incluido el promedio de las últimas ocho cotizaciones semanales dentro de las veintidós semanas anteriores a la fecha inicial de la incapacidad. El subsidio se otorgará mientras dure la incapacidad y se pagará a partir del cuarto día de incapacidad y mientras dure esa situación hasta el plazo de cincuenta y dos semanas.

    En los casos de enfermedad que requieran hospitalización y en los accidentes, el subsidio se pagará desde el primer día de la incapacidad.

    Las órdenes de reposo por incapacidad para el trabajo no podrán ser por períodos mayores de treinta días.

    Artículo 94.- Tendrán derecho al subsidio de descanso por maternidad la trabajadora asegurada que acredite dieciséis cotizaciones semanales dentro de las últimas treinta y nueve semanas que precedan a la presunta fecha del parto.

    Artículo 95.- El subsidio de descanso por maternidad será equivalente al 60% de la remuneración semanal promedio, calculado en igual forma señalado para el subsidio de enfermedad y se otorgará durante las cuatro semanas anteriores y las ocho semanas posteriores al parto, que serán obligatorias descansar.

    Artículo 96.- La fecha presunta del parto será determinada por los servicios médicos que comprueben el embarazo y servirá de referencia para el otorgamiento de los beneficios.

    Cuando el parto sobrevenga después de la fecha presunta señalada por los servicios médicos, el descanso pre-natal será prolongado hasta la fecha del parto, sin que proceda reducir el período post-natal de ocho semanas.

    Cuando el parto sobrevenga antes de la fecha prevista, el período faltante se acumulará al período post-natal señalado.

    Artículo 97.- Durante los primeros seis meses de vida del niño se otorgará un subsidio de lactancia, con sujeción a las siguientes normas:

    a) Se fomentará la lactancia materna.

    b) Si el hijo es amamantado, el Servicio Médico Pediátrico suministrará productos adecuados para mantener en buen estado la salud de la madre.

    c) Si el hijo no es amamantado, será dado preferentemente en leche de calidad, cantidad e indicaciones que determine el Servicio Médico Pediátrico.

    En ambos casos podrá determinarse la sustitución del producto con el equivalente en dinero entregado directamente a la madre del niño.

    Artículo 98.- En caso de muerte de la madre, o en su ausencia, se entregará el subsidio de lactancia a la persona que tenga a su cargo al niño.

    Se suspenderá el subsidio si la madre o quien la sustituye infringe las instrucciones que impartan los Servicios Médicos Pediátricos para el control periódico y oportuno del niño.

    Artículo 99.- El asegurado que haya sufrido Accidente de Trabajo o Enfermedad Profesional y se encuentre en estado de incapacidad temporal para el trabajo, tendrá derecho a partir del día siguiente del riesgo a un subsidio diario igual al 60% del salario promedio calculado en igual forma que el subsidio por enfermedad común.

    Si el accidente ocurriera antes del período prescrito el promedio diario será el que corresponda a las semanas cotizadas y a falta de éstas, con la categoría de salario contractual del asegurado.

    La remuneración del día del accidente estará íntegramente a cargo del empleador.

    Artículo 100.- El subsidio se concederá por días y se liquidará por períodos no mayores de treinta días y se otorgará mientras dure la incapacidad. Sin embargo, al cumplir cincuenta y dos semanas de subsidio, la Comisión de Invalidez, previa opinión de su médico tratante, dictaminará si procede o no la prórroga o procede tramitársela una pensión de incapacidad permanente del asegurado.

    Artículo 101.- El monto de los subsidios de enfermedad, maternidad y riesgos profesionales en ningún caso podrá exceder del salario máximo señalado para los servidores públicos, salvo que el asegurado haya cotizado continuamente durante los seis meses anteriores a la prestación. Se suspenderán los subsidios cuando el asegurado o asegurada no acepte, infrinja o abandone el tratamiento o reposo prescrito.

    check out this link also, it is long but it describes the conditions for the subsidios http://www.google.com/url?sa=t&sourc...hD46FLFp-AEK6A

    There is a little ambiguity about the maternity leave stuff.

    If an employee bring you a constancia from a "clinic" and you want to fire him/her and not give validity to the constancia in terms of severance, then you might have a MITRAB problem, might. But, in terms of paying him/her for the missed work you are not under any obligation, or at least I can't find where this is. As the MITRAB people will attest, that is what the INSS both parties pay into is for.

    The INSS will not pay a subsidio unless it is longer than 4 days.

    Again, the 40% co-pay, only on INSS approved subsidios, is not clear and is not the custom of most employers that I know of, ZF or not. But it is not mandated by any law when it comes to a constancia from a party other than the INSS.

    The Nicaraguan labor law and INSS law are sometimes contradictory and often times very ambiguos. That is why an approved "Reglamento Interno de Trabajo" is so important, if the MITRAB approves your rules and policies before you start, then will have a hard time going back on what they, themselves, have already approved. Our policy is approved by them, so that is what I go by.

    One thing, there is lots of supposition, innuendo, and misinformation about the Nicaraguan labor law. Lots of folks claim certain things, without any basis in fact. I have been a victim to this and that is why I have paid for black and white legal opinions. Before I openend a company here, I read The Codigo del Trabajo from start to finish, and found that when applied fairly it was not too bad or too terribly slanted.

    Also, subsidios for the runs are different from subsidios from having your finger cut off, those take on a whole other light.

    Sorry this got so long.

    Hey, have you been fishing lately? I have not seen you posting too much about that lately.
    Few days ago I fired my caretaker , my belongins were disapearing faster than I was getting them to my house from USA. He worked one year and a half , paid him $ 200 per month plys food.Two weeks ago I increase his payment to $ 300 per month . Now he wants me to pay him one year and a half the trabajo $ 300 per anio not $ 200 as he was getting paid , plus aquinaldo $ 150 not $ 100 for half year.
    Now I had no contract signed or I had not paid INSS.What are my options ?
    Just , cannt trust anybody here. I also have found rat poison in a botega , just scary.
    My dog died from internal bleeding , I think might be related to the rat poisoning.

    I need your advise, please.

  4. #29
    House SOB Little Corn Tom's Avatar
    Join Date
    Jan 2007
    Location
    Pompano Beach, Florida
    Posts
    9,079
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    Sort of the same thing happened to me.

    My understanding is that you have to pay at the current (higher) rate....$300 and $150.

    I did all this and the guy I fired still wants more, so be sure to get a last and final release from him.

    Just do it, get him to sign a release and get him away from you.

    Next time make sure that your caretaker signs for every paycheck, and keep a record of all payments and what they are for.

    Sorry, but it is worth it to get these people out of your life.
    Life's different here ... It's a whole 'nother pace.

  5. #30

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Little Corn Tom View Post
    Sort of the same thing happened to me.

    My understanding is that you have to pay at the current (higher) rate....$300 and $150.

    I did all this and the guy I fired still wants more, so be sure to get a last and final release from him.

    Just do it, get him to sign a release and get him away from you.

    Next time make sure that your caretaker signs for every paycheck, and keep a record of all payments and what they are for.

    Sorry, but it is worth it to get these people out of your life.




    I paid so much money for the house hopping to have a good retirement, and than find out that you need army to be secured and yet they might poisoned you for uknown reason.

    I gave this guy so much extra money and yet still wanted more and more. Ya Tom, this is full b s.What chances I have in court ? I do have documentation of payment to him but no signature of his ?

  6. #31
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by gen08 View Post
    I paid so much money for the house hopping to have a good retirement, and than find out that you need army to be secured and yet they might poisoned you for uknown reason.

    I gave this guy so much extra money and yet still wanted more and more. Ya Tom, this is full b s.What chances I have in court ? I do have documentation of payment to him but no signature of his ?
    You have none, no or 0 chance in court. Going to court will not end well for you, you might be forced to pay several years of salary and also is you were not paying taxes and such you might be forced to pay those as well.

    Your best bet, IMO, and I am not an attorney or expert on this at all but I have been sued as an employer in 3 Latin American countries and I have paid out very little money as compared to the downside, would be to do the following:

    1. Get an attorney you can really trust.
    2. Have said attorney find someone or have someone they really trust to sue you for wrongful termination.
    3. Agree to a pre-court judgment and have the supposed previous employer and attorney file an "embargo precautorio" against your property. That way they first in line to get anything, but in reality will be getting nothing just staving the other party off.
    4. When your former employees attorney finds out there is another lawsuit in front of his, he should lose interest, key word there is should.
    5. If you have bank accounts or anything else in Nicaragua with your name on them, drain them and or get the money into someone elses if you get served with a lawsuit.
    6. The longer you can draw this out the more chance there is that the other party will forget about or take a much smaller settlement.
    Basic thing here is that you need to make yourself "judgement proof" in the eyes of the MITRAB and their legal tentacles.

    I advise you to get with a trusted attorney to have short term employment contracts drawn up for you to use with any and all future employees. I also advise you to enroll employees into the INSS at the minimum wage and only pay them minimum wage on paper, that way they can't claim more wages and thus any potential judgement should be at the minimum wage amount which lowers exposure.

    I also suggest that you indemnify or severace all employees yearly and get written binding proof of this, enter the reliable attorney yet again, and keep said proof for several years.

    Again, these are just my opinions and experiences of doing stuff in Latin America and in Nicaragua. There are probably better ways and I am sure someone can help.

  7. #32

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    You have none, no or 0 chance in court. Going to court will not end well for you, you might be forced to pay several years of salary and also is you were not paying taxes and such you might be forced to pay those as well.

    Your best bet, IMO, and I am not an attorney or expert on this at all but I have been sued as an employer in 3 Latin American countries and I have paid out very little money as compared to the downside, would be to do the following:

    1. Get an attorney you can really trust.
    2. Have said attorney find someone or have someone they really trust to sue you for wrongful termination.
    3. Agree to a pre-court judgment and have the supposed previous employer and attorney file an "embargo precautorio" against your property. That way they first in line to get anything, but in reality will be getting nothing just staving the other party off.
    4. When your former employees attorney finds out there is another lawsuit in front of his, he should lose interest, key word there is should.
    5. If you have bank accounts or anything else in Nicaragua with your name on them, drain them and or get the money into someone elses if you get served with a lawsuit.
    6. The longer you can draw this out the more chance there is that the other party will forget about or take a much smaller settlement.
    Basic thing here is that you need to make yourself "judgement proof" in the eyes of the MITRAB and their legal tentacles.

    I advise you to get with a trusted attorney to have short term employment contracts drawn up for you to use with any and all future employees. I also advise you to enroll employees into the INSS at the minimum wage and only pay them minimum wage on paper, that way they can't claim more wages and thus any potential judgement should be at the minimum wage amount which lowers exposure.

    I also suggest that you indemnify or severace all employees yearly and get written binding proof of this, enter the reliable attorney yet again, and keep said proof for several years.

    Again, these are just my opinions and experiences of doing stuff in Latin America and in Nicaragua. There are probably better ways and I am sure someone can help.
    sounds like pretty solid advice.....

    "I also suggest that you indemnify or severace all employees yearly and get written binding proof of this, enter the reliable attorney yet again, and keep said proof for several years."

    what you are saying is that you get a written employment contract? and when you pay the employee, you get them to sign in a book that they received the payment? i think i understand that you get the employee to then indemnify you at the end of the year that you have paid everything again. but what do you mean by a "severace?" you don't mean sever the relationship every year and hire someone new, do you?
    All this for a flag? Michelle Obama http://hotair.com/archives/2011/11/0...our-years-ago/

  8. #33
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Dr. Demento View Post
    sounds like pretty solid advice.....

    "I also suggest that you indemnify or severace all employees yearly and get written binding proof of this, enter the reliable attorney yet again, and keep said proof for several years."

    what you are saying is that you get a written employment contract? and when you pay the employee, you get them to sign in a book that they received the payment? i think i understand that you get the employee to then indemnify you at the end of the year that you have paid everything again. but what do you mean by a "severace?" you don't mean sever the relationship every year and hire someone new, do you?
    DDT:

    In Nicaragua you have 3 basic yearly "big patronal" obligations:
    1. 30 Days paid vacation a year, supposedly to be taken and enjoyed, not just paid. 15 days after 6 months work and another 15 after the following 6 months another 15 days. Or these can be done on a pro-rated yearly basis if you want to follow the calendar year.

    2. 30 days Xmas bonus or Aguinaldo, prorated on months service at the end of the year, payable by Dec. 10th I think.

    3. For each year of service an employee accrues 30 days "separation or severance" pay in case of dismissal or resignation. This pay is not negotiable as it is in some of the other Latin American countries. The max is topped out after 5 years at 5 months total. There is some other increased severance if the employee is deemed to hold a "confidence" position in said employment, namely things to do with money and upper level managment, at that point the severance gets more pronounced.

    What I meant was that either at the end of each calendar year or year of employment one could "pay off" or clean up each employees entitlements, to include the yearly severance. That way when you sign a new contract the severance accrual starts again.

    I did this several times when I ran a company in Nicaragua to limit the companies exposure. Instead of hurting employee retention I believe this helps it as in many cases when employees reach 3 or more years of service they quit to get the severance amount and it hurts to pay that out. There is something in the Nicaraguan code about 3 or 4 years on the severance that I am not exactly sure of. But at 3 years lots of employees quit to get the mandated severance.

    I hope this is clearer, and yes I was suggesting to re-hire every year, that limits exposure big time espeically if you have several employees.

  9. #34
    Junkyard Dog randude's Avatar
    Join Date
    Sep 2008
    Location
    PNW
    Posts
    3,148
    Blog Entries
    7

    Default Re: Laws in Nicaragua ??

    What an informational thread this is, wow. It should be a sticky. I could see a lot of people getting into a lot of trouble trying to hire someone in Nicaragua.

    I cannot believe in the third world there is so much bureaucracy to employment. It is almost like Gringos are the goose that lays the golden eggs in their own country or when abroad. Gringo = Money, everyone should have one. How can a country like Nica expect to employ their citizens when there is so much crap that is piled on to hire them.

    I have learned a lot from this thread.
    Survivor

  10. #35

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    DDT:

    In Nicaragua you have 3 basic yearly "big patronal" obligations:
    1. 30 Days paid vacation a year, supposedly to be taken and enjoyed, not just paid. 15 days after 6 months work and another 15 after the following 6 months another 15 days. Or these can be done on a pro-rated yearly basis if you want to follow the calendar year.

    2. 30 days Xmas bonus or Aguinaldo, prorated on months service at the end of the year, payable by Dec. 10th I think.

    3. For each year of service an employee accrues 30 days "separation or severance" pay in case of dismissal or resignation. This pay is not negotiable as it is in some of the other Latin American countries. The max is topped out after 5 years at 5 months total. There is some other increased severance if the employee is deemed to hold a "confidence" position in said employment, namely things to do with money and upper level managment, at that point the severance gets more pronounced.

    What I meant was that either at the end of each calendar year or year of employment one could "pay off" or clean up each employees entitlements, to include the yearly severance. That way when you sign a new contract the severance accrual starts again.

    I did this several times when I ran a company in Nicaragua to limit the companies exposure. Instead of hurting employee retention I believe this helps it as in many cases when employees reach 3 or more years of service they quit to get the severance amount and it hurts to pay that out. There is something in the Nicaraguan code about 3 or 4 years on the severance that I am not exactly sure of. But at 3 years lots of employees quit to get the mandated severance.

    I hope this is clearer, and yes I was suggesting to re-hire every year, that limits exposure big time espeically if you have several employees.
    great post RPG! knowing i am a target, i will practice defense!

    While you are on a roll RPG, any other defensive posturing that you would take? building, etc?
    All this for a flag? Michelle Obama http://hotair.com/archives/2011/11/0...our-years-ago/

  11. #36
    TRN Science officer bill_bly_ca's Avatar
    Join Date
    Jun 2008
    Location
    North of the border, south of the artic Circle (Ontario)
    Posts
    5,259
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Dr. Demento View Post
    great post RPG! knowing i am a target, i will practice defense!

    While you are on a roll RPG, any other defensive posturing that you would take? building, etc?
    Red and black flag tied to a squiggly twig helps...
    ==================================================
    Dude !!!.... Its a Canal !!! Can you Dig it ??

  12. #37

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by bill_bly_ca View Post
    Red and black flag tied to a squiggly twig helps...
    and no posts about owe'bama on a blog....
    All this for a flag? Michelle Obama http://hotair.com/archives/2011/11/0...our-years-ago/

  13. #38
    Para aquí para acá Jonh's Avatar
    Join Date
    Jan 2007
    Location
    La Florida
    Posts
    15,442
    Blog Entries
    15

    Default Re: Laws in Nicaragua ??


    "TSST!!!"

  14. #39

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Jonh View Post

    "TSST!!!"
    http://www.youtube.com/watch?v=hfquW-m_UdU
    All this for a flag? Michelle Obama http://hotair.com/archives/2011/11/0...our-years-ago/

  15. #40
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Dr. Demento View Post
    great post RPG! knowing i am a target, i will practice defense!

    While you are on a roll RPG, any other defensive posturing that you would take? building, etc?
    Of course you are a target. Even the Nicas take issue with sip's. JK.

    Building is a whole different matter. I don't know if Nicaragua is like Mexico where for about 5 years after a place is built phantom workers show up claiming to have laid the tile and never be paid and file a labor lawsuit against you, i.e. the Mexican version of a contractors lien. I have heard that Nicaragua is not like that.

    If you are going to sub the work out yourself I would start with three 10 gallon barrels of FDC and a .357 magnum. When the FDC runs out, go ahead and shoot yourself, it will be best and more enjoyable.

    When I put the plant in I used to run, I subbed out most of the work myself and that was an incredible goat rope. I never got sued, but I did have a trade union and police called on me for being abusive and a tyrant. Additionally, I had to lock up ones subs tools and equipment to get him to stay on the job and finish. Let me tell you, it was an education for this Aggie.

    In all seriousness, I would build through a reputable contractor and negoatiate everything with a clearly understood 10% holdback payable 30 days after the job is done. If they won't do the previous, don't mess with them. The previous is not common in Latin America, but having problems with construction and construction payment is, see the correlation? Also, let a good, honest and reputable attorney clearly review any construction contract before you execute it, or maybe execute the contractor.

    Also, I would get two or three very reputable attorneys opinions on how to best proceed with construction. In my old age I got sworn off building anything South of Brownsville, and even north of there ain't easy. I am not sure if there is the equivalent of a "quit claim" or the like in Nicaragua, but I would sure try to find out. As well as a release from labor owed. I know in Mexico many of the home owners require the builder to provide the original, signed, and fingerprinted resignation and employment releases before they pay the final payment on any house.

    Honestly, for the most part the Nicaraguans are pleasure to work with, but they will test your patience. One of the most important things I tell Gringos, or foriengers in general, is that if you go to Latin America to live the first thing you should read is the Federal Labor Law/code of that country. No matter what you do, it will impact you at some point if you are living there. I also always tell them to be current and pay all employment taxes, it is not that difficult and not that expensive and it will save your ass if the SHTF in the case of an accidental death or dismemberment. Also, liability insurance (danos contra terceros) and increased auto liability insurance are rediculously cheap, every Gringo should have a whole bunch.

    One other tip I always give Gringo's, "lose" a passport if you are planning on living out of the country. Go to the embassy and get another one. Then, hide the lost one where nobody will ever know where it is, but you can get to it. That way, if you get put on an immigration retention for some reason, you can either turn in your passport (the current one) and maybe make it out on the old "lost" one or they will have the number of the old passport registered as being on the no go list.

  16. #41
    House SOB Little Corn Tom's Avatar
    Join Date
    Jan 2007
    Location
    Pompano Beach, Florida
    Posts
    9,079
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    DDT:

    In Nicaragua you have 3 basic yearly "big patronal" obligations:
    1. 30 Days paid vacation a year, supposedly to be taken and enjoyed, not just paid. 15 days after 6 months work and another 15 after the following 6 months another 15 days. Or these can be done on a pro-rated yearly basis if you want to follow the calendar year.

    2. 30 days Xmas bonus or Aguinaldo, prorated on months service at the end of the year, payable by Dec. 10th I think.

    3. For each year of service an employee accrues 30 days "separation or severance" pay in case of dismissal or resignation. This pay is not negotiable as it is in some of the other Latin American countries. The max is topped out after 5 years at 5 months total. There is some other increased severance if the employee is deemed to hold a "confidence" position in said employment, namely things to do with money and upper level managment, at that point the severance gets more pronounced.

    What I meant was that either at the end of each calendar year or year of employment one could "pay off" or clean up each employees entitlements, to include the yearly severance. That way when you sign a new contract the severance accrual starts again.

    I did this several times when I ran a company in Nicaragua to limit the companies exposure. Instead of hurting employee retention I believe this helps it as in many cases when employees reach 3 or more years of service they quit to get the severance amount and it hurts to pay that out. There is something in the Nicaraguan code about 3 or 4 years on the severance that I am not exactly sure of. But at 3 years lots of employees quit to get the mandated severance.

    I hope this is clearer, and yes I was suggesting to re-hire every year, that limits exposure big time espeically if you have several employees.


    My understanding has been (for the last few years) that after 12 months of employment, the employee is due one months pay. Then if he quits or is fired, one months pay is due for every 12 months worked.

    What you are saying is that for every 12 months work, 2 months pay is due plus one months pay if fired or quits.

    So for every 12 months of work (and pay) there is 3 months liability for the employer.

    Do I have this right?

    Can anyone else who has experience, please respond. FCM perhaps?

    If you have no experience, please do not post.

    Thanks.
    Life's different here ... It's a whole 'nother pace.

  17. #42
    House SOB Little Corn Tom's Avatar
    Join Date
    Jan 2007
    Location
    Pompano Beach, Florida
    Posts
    9,079
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    Of course you are a target. Even the Nicas take issue with sip's. JK.


    One other tip I always give Gringo's, "lose" a passport if you are planning on living out of the country. Go to the embassy and get another one. Then, hide the lost one where nobody will ever know where it is, but you can get to it. That way, if you get put on an immigration retention for some reason, you can either turn in your passport (the current one) and maybe make it out on the old "lost" one or they will have the number of the old passport registered as being on the no go list.
    This sounds like golden advice to me.
    Life's different here ... It's a whole 'nother pace.

  18. #43
    Active TRN Member Dolly's Avatar
    Join Date
    Jan 2008
    Location
    Pennsylvania/Nicarag
    Posts
    196
    Blog Entries
    1

    Default Re: Laws in Nicaragua ??

    If I hire someone to clean my house for 1 or 2 days a week, should I get an agreement signed stating there are no paid vacation days or severence for the job? How about hiring some neighbor to watch my house for a few months while I am gone, not live there, just watch the house. Do they need an agreement? I have a good lawyer for the property sale and I'm sure he would give me some agreements to use as needed. Would this eliminate any future problems? The vacation and severence time seems absorbatant compared to the states. Is this for everyone or just for gringos? By the way, this is a great thread!!
    It's all part of the adventure!!

  19. #44
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Regarding severance pay at the conclusion of an employement relationship:
    Artículo 45. Cuando el empleador rescinda el contrato de trabajo por tiempo indeterminado y sin causa justificada pagara al trabajador una indemnización equivalente a:
    • 1) un mes de salario por cada uno de los primeros tres años de trabajo;
    • 2) veinte días de salario por cada año de trabajo a partir del cuarto año.
    En ningún caso la indemnización será menor de un mes ni mayor de cinco meses. Las fracciones entre los años trabajados se liquidarán proporcionalmente.
    Regarding vacation pay:
    Artículo 76. Todo trabajador tiene derecho a disfrutar de quince días de descanso continuo y remunerado en concepto de vacaciones, por cada seis meses de trabajo ininterrumpido al servicio de un mismo empleador.

    Los trabajadores al servicio del Estado y sus Instituciones disfrutarán de vacaciones con goce de salario desde el Sábado Ramos al Domingo de Pascuas inclusive; del veinticuatro de Diciembre al Primero de Enero inclusive; y de dieciséis días más durante el año.

    En todos los casos, por interés del empleador o del trabajador o cuando se trate de las labores cíclicas del campo o de servicios que por su naturaleza no deban interrumpirse, la época de disfrute de las vacaciones podrá convenirse en fecha distinta a la que corresponda.

    Es obligación de los empleadores elaborar el calendario de vacaciones y darlo a conocer a sus trabajadores.

    Artículo 77. Cuando se ponga término al contrato de trabajo, o relación laboral, el trabajador tendrá derecho a que se le paguen los salarios y la parte proporcional de sus prestaciones de ley acumuladas durante el tiempo trabajado.

    Artículo 78. Las vacaciones se pagarán calculándolas en base al último salario ordinario devengado por el trabajador.

    En caso de salario variables, se calculará en base al salario ordinario promedio de los últimos seis meses.

    Artículo 79. La interrupción del trabajo por enfermedad del trabajador, permiso u otra causa justa, no interrumpe la suma de los días trabajados para completar el tiempo que le confiere derecho a vacaciones.

    Artículo 80. Durante el período de vacaciones el empleador no podrá adoptar ni comunicar al trabajador ninguna medida en su contra, salvo en caso de acciones penales.
    Regarding Xmas bonus or thirteenth month:
    Artículo 93. Todo trabajador tiene derecho a que su empleador le pague un mes de salario adicional después de un año de trabajo continuo, o la parte proporcional que corresponda al período de tiempo trabajado, mayor de un mes y menor de un año.

    Se entiende por salario adicional o decimotercer mes la remuneración en dinero recibido por el trabajador en concepto de salario ordinario conforme este Código.

    Artículo 94. El salario adicional anual o decimotercer mes se pagará conforme al último mes de salario recibido, salvo cuando se devengare salario por comisiones, obra, al destajo y cualquier otra modalidad compleja; en estos casos se pagará conforme el salario más alto recibido durante los últimos seis meses.

    Artículo 95. El decimotercer mes deberá ser pagado dentro de los primeros diez días del mes de diciembre de cada año, o dentro de los primeros diez días después de terminado el contrato de trabajo. En caso de no hacerlo el empleador pagará al trabajador una indemnización equivalente al valor de un día de trabajo por cada día de retraso.

    Artículo 96. Para efectos del pago del decimotercer mes será también considerado como tiempo efectivo de trabajo: las vacaciones disfrutadas, las ausencias justificadas, los permisos con o sin goce de salario, los asuetos, subsidios por enfermedad y otros que determinare la ley.

    Artículo 97. El salario correspondiente al decimotercer mes es inembargable, salvo para el cumplimiento de las obligaciones de prestar alimentos, tiene la misma protección que el salario mínimo, y estará exento del pago de todo impuesto, descuentos, cotizaciones y deducciones de cualquier especie.
    Ok, folks, this is right from the Labor Code. I know some of you don't speak or read Spanish all that great, but it basically reiterates what I have written below. In particular read the bold and italic print stuff, that is the important info. Read em' and weep.

    Tom:
    Article 77 is very important to what you ask. Roughly translated: "When a labor contract or employment relationship ends, the employee has the right to be paid his accumulated employment benefits based on the time employed"

  20. #45
    House SOB Little Corn Tom's Avatar
    Join Date
    Jan 2007
    Location
    Pompano Beach, Florida
    Posts
    9,079
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    OK then....

    I do not read Spanish at all.

    My question is....is it correct that for every 12 months of pay to an employee, there is 3 months worth of obligation or liability?

    I am not challenging what you say at all, I just want to make sure that I understand it.
    Life's different here ... It's a whole 'nother pace.

  21. #46
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Dolly View Post
    If I hire someone to clean my house for 1 or 2 days a week, should I get an agreement signed stating there are no paid vacation days or severence for the job? How about hiring some neighbor to watch my house for a few months while I am gone, not live there, just watch the house. Do they need an agreement? I have a good lawyer for the property sale and I'm sure he would give me some agreements to use as needed. Would this eliminate any future problems? The vacation and severence time seems absorbatant compared to the states. Is this for everyone or just for gringos? By the way, this is a great thread!!
    I am not saying that this is the best thing, but I think it will work to cover what you are concerned about. Get a reciept for services rendered as if it were a business, and pay them IVA on it so that it appears on the up and up and if they come against you with some rediculous claim you can they point out that they will owe the IVA that they have not paid. Might cost you a little extra, but sure not worth the hassle.

    I think someone was on TRN a while ago, more than a year, with some big issue where they got dinged by a maid for 3-4 months wages when the maid only worked for less than a year. It went to the labor ministry and they were SOL when the contingency fee lawyer got done with them as he knew exactly what to produce.

  22. #47
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Little Corn Tom View Post
    OK then....

    I do not read Spanish at all.

    My question is....is it correct that for every 12 months of pay to an employee, there is 3 months worth of obligation or liability?

    I am not challenging what you say at all, I just want to make sure that I understand it.
    Tom:
    That is the way I figure it, and I came to find it was the best way when I had around 400 employees down there. Additionally, if you do not severance after the first year, then at 24 months you will owe 4 months and at 36 months you will owe 5 months.

    The 5 months pay is why so many employees quit in the third year.

  23. #48
    House SOB Little Corn Tom's Avatar
    Join Date
    Jan 2007
    Location
    Pompano Beach, Florida
    Posts
    9,079
    Blog Entries
    5

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by RGV AG View Post
    Tom:
    That is the way I figure it, and I came to find it was the best way when I had around 400 employees down there. Additionally, if you do not severance after the first year, then at 24 months you will owe 4 months and at 36 months you will owe 5 months.

    The 5 months pay is why so many employees quit in the third year.
    I guess then that the next issue is what is minimum wage for domestics and caretakers?

    Jeez...I can foresee a whole forum on how to deal with employees without getting bent over the hood of Ortega's Mercedes. While low cost employees sounds pretty good for a retiree, the hassle of being sued every month for not obeying ill defined laws is a real turn off.

    The idea of quitting after 36 months to collect 5 months pay says a lot about the culture and attitudes. Scary.

    Maybe it is best to bring in an employee from Costa Rica, or Honduras....someone with no "rights"....like me!
    Life's different here ... It's a whole 'nother pace.

  24. #49
    Para aquí para acá Jonh's Avatar
    Join Date
    Jan 2007
    Location
    La Florida
    Posts
    15,442
    Blog Entries
    15

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Little Corn Tom View Post

    Maybe it is best to bring in an employee from Costa Rica, or Honduras....someone with no "rights"....like me!
    Someone willing to do work the locals won't do, for less pay?

  25. #50
    Active TRN Member RGV AG's Avatar
    Join Date
    Mar 2009
    Location
    Sweatshops R-US Nicaragua again
    Posts
    607

    Default Re: Laws in Nicaragua ??

    Quote Originally Posted by Little Corn Tom View Post
    I guess then that the next issue is what is minimum wage for domestics and caretakers?

    Jeez...I can foresee a whole forum on how to deal with employees without getting bent over the hood of Ortega's Mercedes. While low cost employees sounds pretty good for a retiree, the hassle of being sued every month for not obeying ill defined laws is a real turn off.

    The idea of quitting after 36 months to collect 5 months pay says a lot about the culture and attitudes. Scary.

    Maybe it is best to bring in an employee from Costa Rica, or Honduras....someone with no "rights"....like me!
    But wait, it gets better, depending on how you look at it of course, you do have right rights in Nicaragua as an employee Tom. Every person, regardless of nationality, race, creed, or political affiliations, has the rights of an employee under Nicaraguan labor laws. Trust me on this, I can vouch from first hand experience.

    Holy smokes, you may say. How can anyone afford to have a well paid employee you are probably asking yourself? Well, what is done is that individual "consulting" contracts are executed and those employees basically become "contractors" that are not subject to the INSS and other labor regulations in terms of benefits. But there is a 10% tax on those types of agreements and if the contract holder, the quasi employee, complains or can make a case of being a permanent employee when a problem arises with these you are fooked for a whole lot more money if you do not fulfill the contract. Hence, when you give out one of those consulting contracts be prepared to see it through to the end in full.

    The best advice I was ever given in Nicaragua was the following:
    "Don't worry too much about the contract, worry a whole lot about who you make the contract with"

Page 2 of 3 FirstFirst 123 LastLast

Similar Threads

  1. International and Nicaraguan Laws
    By peterchristopher in forum Legal
    Replies: 32
    Last Post: 11-05-2008, 10:47 PM
  2. Costal Laws - To be translated later
    By tresfrijoles in forum Nicaraguan Culture, Politics and History
    Replies: 0
    Last Post: 05-08-2007, 11:03 PM
  3. More laws passed today
    By tresfrijoles in forum Today, in Nicaragua...
    Replies: 0
    Last Post: 02-22-2007, 11:27 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Also visit the False Bluff Blog!