Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Law to Incentivize Businesses Owned by Young Adults

New Legislation Enacted

Authors: César Gonzáles Hunt, Partner, and Amable Vasquez Baiocchi, Associate – Philippi Prietocarrizosa Ferrero DU & Uría

Law 31828, published on July 12, 2023, establishes tax benefits to formal businesses owned by young adults between the ages of 18 and 29, when they hire employees in the same age range. The benefits contemplated include: (1) access to a simplified company constitution and registration process, (2) option to apply for an additional tax deduction equivalent to 50% of the basic remuneration paid to the newly hired employees, complying with a series of requirements, (3) access to the IGV refund for export operations of goods and services, and (4) bonus of additional points in the technical proposal of goods and services for contracting processes of the public sector.

New National Holiday

New Legislation Enacted

Authors: César Gonzáles Hunt, Partner, and Amable Vasquez Baiocchi, Associate – Philippi Prietocarrizosa Ferrero DU & Uría

On July 8, 2023, Law 31822 was published. This law declares a new national holiday on July 23, in commemoration of the national hero Captain of the FAP, Jose Abelardo Quiñones Gonzales and day of the Peruvian Air Force. For practical purposes, this new holiday means that:

• When this falls on a working day (Monday through Friday), it will not be considered as a working day for purposes of the accounting of judicial and administrative deadlines;
• Employees have the right to paid rest on such occasion, and must receive their ordinary remuneration corresponding to one day of work; and,
• The work performed on such date shall be paid with the surcharge corresponding to the work performed on a holiday, i.e., a surcharge of 100%.

Prohibition of Outsourcing Declared to Be an Illegal Bureaucratic Barrier

Precedential Decision by Judiciary or Regulatory Agency

Authors: César Gonzáles Hunt, Partner, and Amable Vasquez Baiocchi, Associate – Philippi Prietocarrizosa Ferrero DU & Uría

A government authority responsible for, inter alia, analyzing the public impact of laws and regulations has declared that the prohibition against outsourcing is an illegal bureaucratic barrier that can no longer be enforced. Specifically, through Resolution 270-2023, the Commission for the Elimination of Bureaucratic Barriers (CEBB), a branch of the National Institute for the Defense of Competition and the Protection of Intellectual Property (INDECOPI), declared that the Ministry of Labor and Employment Promotion imposed illegal bureaucratic barriers when it introduced a prohibition against outsourcing of services through the Ministry’s Supreme Decree N°001-2022-TR.

Therefore, the CEBB’s Resolution 270-2023 means that the regulations prohibiting the outsourcing of activities that are part of the core business of a company are no longer in effect as of July 23, 2023.