Employment obligations of companies with more than 100 employees

Over the years, Peruvian regulations have established different obligations for employers, which depend, in certain circumstances, on the number of employees each company has.

Thus, the following obligations are applicable to those employers who have more than 100 employees:

1. Have an Industrial Relations Service department, currently known as Human Resources department

Legal basis: Legislative Decree No. 14371 and Supreme Decree No. 005.

This obligation states that employers must implement this department, which must be permanently in charge of industrial relations to solve employment issues, and its duties must include, among others:

  • Responding to complaints made by employees regarding salaries and other working conditions, as well as regarding any breach of compliance with legal and contractual provisions.
  • Promoting harmony and collaboration between the employer and the employees through all appropriate means, such as salary and personnel administration, selection and training, communications, industrial hygiene and safety, and social assistance.

To this effect, the employer must inform, to the Administrative Labor Authority of its jurisdiction, the name(s) of the person(s) in charge of the Industrial Relations Service or Human Resources department, as well as the degree(s) or diploma(s) these hold, within 48 hours of their appointment. This information must be reported through a simple request addressed to the Ministry of Labor and Employment Promotion (MINTRA), which must indicate the person(s) in charge of said department.

2. Have a Certified Social Worker

Legal basis: Legislative Decree No. 009, Supreme Decree No. 337, and Law No. 30112.

This obligation, which was implemented in 1965, states that employers must have such a professional within its Industrial Relations Service department, and is mainly in charge of:

  • Collaborating to the prevention and solution of personal and family problems of employees, which may affect the performance of their duties.
  • Encouraging the participation of employees and their relatives in the programs organized by the Industrial Relations Service department.

In this case, the employer must also inform, to the Administrative Labor Authority of its jurisdiction, the name of the appointed Certified Social Worker (currently called Social Worker registered with the Association of Social Workers).

Although it is true that this obligation is quite old and a little obsolete, it is still in force and employers are therefore mandatorily required to ensure its compliance, to the point that the National Superintendency of Labor Inspections (SUNAFIL) has launched a campaign to verify the compliance with this obligation.

3. Have Internal Work Regulations in place

Legal basis: Supreme Decree No. 039-91-TR

This obligation states that employers must have Internal Work Regulations in place, which must determine the conditions to which both employees and the employer are subject when performing their duties.

Such regulations must be submitted to the Administrative Labor Authority for the respective approval. In addition, a copy of these regulations or their amended version, if applicable, must be provided to employees within 5 days of their submission to the referred authority.

Special considerations

According to inspective regulations, the failure to have an appropriate Industrial Relations department, a certified social worker, or Internal Work Regulations in place will give rise to a serious infraction with respect to employment relations.

In such case, penalties may be no less than 4.50 tax units (S/ 22,275.00) in the case of small companies and no less than 7.83 tax units (S/ 38,758.50) in the case of companies other than SMEs.

Without prejudice to the obligations related to employment relations, it is worth mentioning that, regarding Occupational Safety and Health, employers are required to have an occupational physician, an Occupational Safety and Health Committee, and Internal Regulations for Occupational Safety and Health in place.

In summary, as stated above, although the obligations detailed above were set out a long time ago, employers must continue to strictly comply with these, as SUNAFIL may initiate the corresponding inspections. It should be noted that SUNAFIL does not need to carry out in-person inspections given that, with today’s technology and digital information, this entity can detect infractions and notify employers directly through their SUNAFIL Electronic Mailbox.

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