Congress Approves Amendment to the Labor Code

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EL SALVADOR – THE CONGRESS APPROVES AMENDMENT TO THE LABOR CODE TO ESTABLISH AS OBLIGATION THE REGISTRATION OF TEMPORARY AND TRIAL PERIOD WORKERS TO THE SOCIAL SECURITY REGIME

On July 19, 2022, the Congress approved amending article 29 of the Labor Code, incorporating section 10th), which states that employers have the obligation to enroll their employees in the Social Security Regime, according to the terms and conditions imposed by the Social Security Law and its regulations. This amendment expressly states that “there are no exceptions for this obligation for workers in their trial period or for temporary workers”

This new regulation reinforces the content of article 3 of the Social Security Law, according to which the compulsory Social Security Regime originally applies to all workers who depend on an employer, regardless the type of employment relationship that binds them and the way in which the remuneration has been established, as well as article 7 of the Regulation for the Application of the Social Security Regime, according to which employers are obliged to get a registration and enroll their workers in the Social Security Regime must comply with the obligation to register their employees within a period of ten business days from the date of their entry into the company, a provision that does not expressly establish that this obligation should also be understood as applicable in favor of temporary workers and workers on trial period.

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