Peru Employment Guide

Navigating Employment Termination in Peru: A Comprehensive Guide

Terminating employment relationships in Peru requires careful adherence to complex regulatory frameworks and country-specific labor provisions. The separation process must be handled collaboratively between employers and key stakeholders, often involving specific procedures and potential transitional costs depending on termination circumstances.

Permissible Grounds for Termination

Peruvian labor law establishes strict parameters for employment termination. Beyond probationary periods, employers cannot terminate employment arbitrarily and must demonstrate valid justification. Legally compliant termination pathways include:

• Voluntary resignation initiated by the employee
• Mutual agreement between both parties
• Employer-initiated termination based on:
  • Probationary period assessment
  • Objective business reasons
  • Disciplinary dismissal for cause
• Natural expiration of fixed-term contracts

Notice Period Requirements

The standard notification period for employment termination typically spans 30 calendar days, though specific durations may vary depending on the termination rationale and employee tenure.

Severance Compensation Framework

Employees terminated without just cause in Peru are entitled to severance compensation calculated at 45 days' wages per year of service, capped at 12 months' base salary. This protection mechanism ensures financial stability for workers facing involuntary separation.

To mitigate unexpected financial exposures during workforce transitions, SailGlobal implements proactive severance accrual strategies across all Peruvian employment agreements. Our global expertise in litigation risk management informs severance calculations that reflect both statutory requirements and local best practices. Should employees resign or otherwise become ineligible for severance, any unused accruals are promptly returned to clients.

Practical Considerations for International Employers

Recent cases demonstrate the importance of documentation consistency. A multinational technology firm faced significant penalties for improperly classifying terminations as voluntary when employees had expressed dissatisfaction with workplace conditions. Another manufacturing company successfully navigated a collective termination by implementing SailGlobal's phased consultation process, avoiding litigation through transparent communication with worker representatives.