Requirement for Foreign Employees to Work
The hiring of foreign workers is regulated by Legislative Decree 689, Law on the Hiring of Foreigners (hereinafter, the Law) and its regulations, approved by Supreme Decree 014-92-TR. Added to this regulation is the Immigration Law, approved by Legislative Decree 1350, which determines the migratory status of workers.
In Peru, foreign personnel may start providing services once the employment contract has been presented and the qualifying immigration status has been obtained. The loss of immigration status automatically terminates the contract.
Employers cannot hire more than 20% of foreign workers, according to the company’s total workforce; Likewise, the remuneration of foreign personnel must not exceed 30% of the remuneration that the company pays to national workers.
There are special cases that are regulated in the country and grant facilities for the hiring of foreign workers. Thus, Peru has signed international agreements that allow the flow of workers between nations. Below we describe the two main agreements that should be considered and read before hiring foreign workers.
The agreement signed with the Kingdom of Spain is the only labour reciprocity or dual nationality agreement recognised by the MTPE. In this sense, it is the only mechanism to facilitate the hiring of foreign personnel.
Peru, along with Bolivia, Ecuador and Colombia, is part of the Andean Community of Nations. Thus, Decision 545, Andean Labour Migration Instrument, aimed at regulating Andean labour migration, favouring the free movement of workers. According to this rule, “Andean Migrant Worker” will be foreign nationals from Bolivia, Ecuador and Colombia who move to Peru to work.
