Guatemala Employment Guide

Navigating Employment Termination in Guatemala: A Guide for International Employers

Terminating employment in Guatemala requires careful adherence to complex legal frameworks and country-specific regulations. The separation process must be managed collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on the termination circumstances.

Legal Grounds for Employment Termination

Unlike some jurisdictions, Guatemala does not recognize at-will employment for staff beyond their probation period. All terminations must be supported by legitimate justification to ensure compliance.

Acceptable termination pathways include:

• Voluntary resignation initiated by the employee
• Mutual separation agreement between both parties
• Employer-initiated termination based on:
  • Probationary period assessment
  • Objective business reasons
  • Disciplinary dismissal for misconduct
  • Performance-related issues due to work incompatibility
• Natural contract expiration

Notice Period Requirements

Minimum notice periods vary significantly based on employment duration and termination type, typically ranging from one week to one month. Proper notice calculation is critical for compliance.

Severance and Compensation Considerations

Guatemalan labor law does not mandate automatic severance payments. Employees receive standard wages during the notice period. However, if termination occurs without proper justification, employees have 30 days to file a legal claim. Successful claims can result in compensation equivalent to one year's salary.

Practical Case Example: Manufacturing Sector

A multinational manufacturing company recently faced challenges when restructuring its Guatemala operations. By working with SailGlobal's HR experts, they implemented proper termination procedures that included:

This approach minimized legal risks while maintaining positive employee relations during transition periods.