Labor & Employment Practices

A growing number of indigenous groups are opposing natural resource exploitation and the construction of dams, mines, and oil fields out of concern for their ancestral land (Squires, 2022). Despite social tensions, the government has passed environmental protection laws (Lim, 2018). In Peru, employment and labor (Sternquist, 2018) are key to poverty reduction, sustainable development, and social inclusion (Lima, 2022). Since the return to democracy in 2000, the legal framework for decent work has improved. The formation of the tripartite National Council for Work and Employment Promotion has promoted social dialogue in Peru. To promote the Decent Work Agenda in Peru, the following priorities have been identified:

I) Increasing social inclusion through employment and entrepreneurship.

II) Expanding social security to the most vulnerable.

III)Promoting social dialogue and understanding of workplace rights by strengthening labor institutions.

IV) Continue to combat child labor.

These DWCP priorities also contribute to the United Nations Partnership for Development Framework (UNPDF) (Ressy, 2012). A labor force comprises people ages 15 and older who provide labor to produce goods and services. It includes both employed and unemployed individuals and first-time job seekers. However, not everyone who works is included (Cavero & Ruiz, 2016). Often, unpaid workers, family workers, and students are omitted, and some countries do not count military personnel as armed forces members. As seasonal workers enter and leave the labor force, the size of the labor force varies throughout the year (Othan, 2022).

The estimated earned income for Peru in 2022 was 0.7. This represents that, on average, women in Peru earn 70 percent of the income earned by men (Cia, 2022). As a whole, the South American country scored 0.66 in the gender gap index area of economic participation and opportunity. Consequently, women are 34 percent less likely than men to have equal economic opportunities and participation (Wang, 2022).

Figure 7

Labor market gender gap index in Peru by area 2022

Romero, T. (2022, August 8) Peru: labor market gender gap index 2022, by area. 

The Labour Code includes all requirements for any breaks, work hours, along with any holiday pay, vacation time, and paid leaves that employers in Peru are obligated to provide to their employees by law (Replicon, 2022). Although some changes due to COVID, such as the implementation of remote work to many companies in Peru, have been recently added to the Labor Codes, there are already provisions set in place by the Department of Labor Bureau of International Labor Affairs to ensure proper pay and rest of employees (El Peruano, 2022). 

Contracts

There are different forms of contract hiring in Peru including Indefinite-term Employment, which does not include a defined duration of employment, and Definite-term Employment, which does not exceed a duration of five years of employment (Lima Easy, 2022). As of May 1st 2022, the Supreme Decree NÂş 003-2022-TR declared that the national minimum wage in Peru be increased to 1025 PEN (Peruvian Sol, Peruvian national currency) a month. This translates to about $271 American dollars a month (El Peruano, 2022). 

Work Hours 

The typical work week should not exceed 48 hours and a work day is 8 hours, according to Peru’s Constitution and the Law on Days of Work, Hours, and Overtime (U.S. Department of Labor Bureau of International Labor Affairs, 2022). The DOL states that if the employee’s work day falls within the hours of 10 PM and 6 AM, then the law enforces that the employer pay 35 percent over their regular wage as this is considered night work. A lunch break of minimum 45 minutes per 8 hour work day is also required. Supreme Decree 007-2002-TR indicates that overtime is optional for employees. An employer is obligated to pay a 25 percent increase for the employee’s first 2 hours of overtime, and 35 percent for any overtime hours after that. 

Article 264 of the Labour Code (1988)  requires that there be at least 12 hours between the end of an employee’s work day and the start of their next shift. Article 264 also states that employers are required to give their employee at least 24 hours of rest during their work week. However, if they are made to work on their rest day, the employer is to pay the employee their normal wage plus a 100 percent extra pay (Article 1-5 Legislative Decree No. 713, International Labor Organization, 2011). 

Paid Leave 

Some public paid holidays in Peru, according to the International Labor Organization (2011), include New Year (January 1), Maundy Thursday and Good Friday, Labor Day (May 1), 29 June Saint Pedro and Saint Pablo’s Day (June 29), July Fiestas Patrias (July 28 and 29), 30 August Santa Rosa de Lima, Angamos Fight (October 8), All Saints’ Day (November 1), Imaculada ConcepciĂłn (December 8), and 25 December (Christmas Day). According to Article 36, Law No. 26790, employees are to get 20 days of sick leave pay paid by the employer. There are also laws that provide paid maternity leave, paternity leave, and bereavement pay (International Labor Organization, 2011). 

Women in the Industry

According to the Peru Census of Population and Occupation of 1940, 214,765 women were recorded to have been working in “manufacturing” industries. Of those 214,765 women, 158, 541 worked in textiles, 43, 085 worked in manufacturing clothing, shoes and accessories, and 514 worked in leather products, hides and furs. Women Workers in Peru shows research of what roles women were taking in the workforce (Women Workers in Peru, 1947) where it was noted that women were spinning, winding, and sorting at wool mills. 

Figure 6

Gainfully Employed Persons, by Industry and Sex, Peru, 1940

Fraser (2022). Gainfully Employed Persons, by Industry and Sex, Peru, 1940 [Table].