If a group of workers did not receive their Christmas bonus mandated by law on the established date, they could decide to go to the Guatemalan Ministry of Labor (Mintrab) to file a claim. This is just an assumption that could provoke the General Labor Inspectorate (IGT) to knock the doors of their employers’ offices. But the IGT could also act ex officio and inspect a specific sector at any time.
In both cases the authorities could send inspectors to different workplaces to ensure that employers comply with the laws, conventions[1] and regulations related to labor and social welfare in the country. Or summon employers to their headquarters at the Ministry.[1] y reglamentos relacionados con el trabajo y la previsión social en el país. O bien citar a los empleadores a su sede en el Ministerio.
In the latter situation, it is important to emphasize that the employer is obliged to attend any summons, provided that the reason for it has been expressly stated. But if everything is in order with the citation, the non-attendance could end up in a sanction.
The Guatemalan Government has tightened labor, environmental and tax regulations in the last year. That is why we have prepared this guide, so that you and your team know what to do in case you receive an inspection from the authorities.
Always be Prepared
Even if you as an employer comply with all the requirements, you should have all the documentation organized and always be prepared to receive a visit from an inspector or to attend a summons at the IGT headquarters.
Therefore, we recommend that you always keep at least the following documents accessible and up to date:
- Individual employment contracts of all employees, signed and registered with the Ministry of Labor and Social Security.
- Forms from the Guatemalan Institute of Social Security (IGSS) and proof of payments.
- Signed receipts by employees proving the payments of their labor benefits.
- Proof, signed by the workers, that they have been granted, paid and enjoyed their vacations.
In addition, if you have ten or more employees, you must have a Wage Book and a copy of the Internal Work Regulations in force, both approved by Mintrab.
Inspectors and their Powers
The law grants several faculties to labor inspectors, so, in the event of a visit, they must be treated with respect and allowed to carry out their work. Failure to do so could result in the initiation of a sanctioning procedure or could even provoke the intervention of the police.
Among other things, an inspector could:
- Visit the workplace without prior notification.
- Remain at the workplace as long as necessary to perform their duties.
- Be accompanied by experts or technicians. For example, in the health and safety area, they could bring experts to corroborate that the machines, equipment or materials used by workers do not represent a risk to them. Or take people to measure, draw up plans or take photos or videos of different work areas.
- Request copies and extracts of social security documents, payroll and payment slips, books, records, computer programs, files and official statements, among others.
- Examine the company's electronic storage systems, documentation and books relevant to compliance with labor legislation.
- The only thing they will not be able to require without judicial authorization is accounting books.
Despite their powers, inspectors also have some obligations such as duly accrediting their identity and position, stating the purpose of the visit and not taking more than 30 working days[2] in their verification.
The employer may also require inspectors to show their respective credentials and may send a company representative during the inspection. Workers may also be represented by union leaders (if there is a union in the organization) or by one or two co-workers.
Once the inspection is completed, and in case any non-compliance is detected, the inspector will take measures focused on the employer's compliance labor standards. In this case, a period of no more than 8 days will be given to verify whether the employer has complied with what has been agreed. In case of non-compliance, an administrative sanctioning procedure will be initiated, the purpose of which is to impose a fine and correct the non-compliance detected.
If you have any questions or would like more information, we are at your service.
You can also consult our guides
[1] Guatemala has ratified International Labor Organization (ILO) Conventions 81 (Labor Inspection Convention, 1947) and 129 (Labor Inspection [Agriculture] Convention, 1969), which oblige member states to maintain a system of labor inspection in industrial and commercial establishments and in agriculture.
[2] Exceptionally and on a one-time basis, verification activities may be extended for up to 15 more working days.