Common issues

When to call us.

You need to dismiss an employee and avoid a lawsuit

A poorly-executed dismissal in Guatemala almost always triggers a labor claim with reinstatement or higher compensation. We structure cause, notice, severance and bulletproof release — and we can attend signing.

You got sued in Labor Court

An ex-employee filed for wrongful dismissal, unpaid benefits, overtime or reinstatement. We take defense through conciliation and full trial if needed.

You don't know what an employee is owed

Severance (Art. 82), proportional Christmas bonus, proportional Bono 14, vacation, pending salary, incentive bonus. We calculate each item with legal basis and deliver the signed release form.

No internal rulebook or formal policies

Without rulebook you can't sanction, dismiss for cause or enforce standards. We draft an internal rulebook tailored to your industry and register it at the Labor Ministry.

Labor Ministry or IGSS inspection

We review findings and respond. Many can be cured within deadline with reduced fines if acted upon quickly.

Scope

Employer-side labor coverage.

  • Individual employment contracts (permanent, fixed-term, project)
  • Internal rulebook with Labor Ministry registration
  • Collective agreements and union negotiation
  • Job manuals and internal policies (anti-harassment, code of ethics, IT use)
  • Labor benefits calculation (severance, Christmas bonus, Bono 14, vacation, incentive bonus)
  • Settlement and release documents before notary
  • Just-cause dismissals: documentation, witnesses, formal notice
  • Constructive dismissals and negotiated resignations
  • Conciliation hearings representation at Labor Ministry
  • Defense in Labor and Social Security Court
  • Defense against reinstatement and labor amparo actions
  • Preventive labor audit — liability map
  • Employer IGSS registration and payroll management
  • IGSS claims, sick leave and workplace accidents
  • Telework, contractor vs employee classification

Not included

Defining scope.

  • Full HR outsourcing (recruitment, selection, operational payroll) — coordinated with partners
  • Criminal litigation for labor crimes — coordinated with criminal counsel
  • Defense of employees against companies — employer-side only

How we work

From risk to order.

  1. 01

    Express labor diagnosis

    Review contracts, payroll, policies, IGSS reports, liability calculations. Within 5 business days we flag weaknesses.

    Week 1
  2. 02

    Document normalization

    Draft or update contracts, rulebook, policies by industry. Sign with staff.

    Weeks 2–4
  3. 03

    Operational rollout

    Train HR/management on intake, exits, warnings, vacations. Leave a defined process.

    Weeks 4–6
  4. 04

    Ongoing retainer (optional)

    Real-time advice on labor decisions, calculations, communications, IGSS/Ministry responses.

    Monthly

Reference fees

Most requested.

Indicative fees for common labor services. Adjusted to headcount and complexity.

Individual employment contract

Q350–Q900

By type (indefinite, fixed-term, project, technical service).

Full internal rulebook

from Q4,500

Drafting + Labor Ministry registration.

Calculation and settlement

from Q850

Benefits calculation + release drafting.

Full dismissal package

from Q2,200

Dismissal letter, calculation, release, signing support.

Labor trial defense

from Q8,000

Per case, to judgment. Stage fees available.

Preventive labor audit

from Q6,500

Full review + liability map + action plan.

Monthly labor retainer

from Q2,500/mo

Up to 20 monthly consults + contract review + unlimited calculations.

Court costs and procedural fees paid separately in litigation.

FAQ

Guatemalan labor law questions.

How much is severance for wrongful dismissal in Guatemala?

Article 82 of the Labor Code sets one month of salary per completed year of service, plus proportional fraction. Calculated on the average salary of the last 6 months (including commissions and incentive bonuses). In addition: proportional Christmas bonus, proportional Bono 14, pending vacation and incentive bonus (Q250 monthly).

What is Bono 14 and when is it paid?

Bono 14 is an annual bonus equivalent to one month of ordinary salary, payable in July. Regulated by Law of Bono 14 (Decree 42-92). Mandatory for private employers, in addition to Christmas bonus (Decree 76-78). Non-payment triggers fines and claims with interest.

Can I dismiss without severance?

Only with just cause listed in Article 77 (serious misconduct, dishonesty, violence, unjustified absences, etc.). Must be documented with evidence, formal notice and technical follow-up — without this, courts often rule for the employee even if cause existed.

Employment contract vs services contract?

Employment implies dependency (subordination, schedule, employer tools). Services contract is between independents (no subordination, with invoice). Disguising employment as services is common in Guatemala — labor courts unmask it with 'primacy of reality'. We advise on the proper figure.

Is IGSS employer registration mandatory?

Yes, from the first dependent employee. Employer quota is 12.67% of salary (6.67% IGSS + 6% IRTRA and INTECAP), plus 4.83% withheld from the employee. Omitting triggers fines, claims and arrears with interest.

Resigning employee asks for items they don't deserve?

Voluntary resignation has no severance, but includes: proportional Christmas bonus, proportional Bono 14, unused vacation and proportional incentive bonus. If they demand more, we calculate technically and sign release. If they persist, we defend in court.

What is constructive dismissal and why is it risky?

When an employee resigns claiming the employer forced them via attributable cause (harmful function change, salary reduction, harassment, non-payment). Can be treated as wrongful dismissal with full severance plus reinstatement. Labor condition changes need counsel.

Telework: can I do it with current employees?

Yes, under the Telework Law (Decree 6-2023). Agreement must be voluntary, documented, with shift respect and connectivity/equipment cost allocation. We draft the contract amendment compliant with the law.

Is overtime mandatory? How is it calculated?

The Labor Code (Art. 121–124) regulates ordinary shifts (8h daily, 44h weekly daytime). Overtime is paid at 50% uplift (daytime) or 100% (night and rest days). Trust and executive employees may be excluded. Defined in contract and rulebook.

Prevent claims. Normalize labor.

Free 30-minute consult. We tell you where your biggest risk is and how to reduce it without stopping operations.