Global HR Compliance in Guatemala

Guatemala is one of the largest economy in Central America, offering access to a growing consumer base, regional logistics hubs, and a workforce that is both cost-competitive and increasingly skilled. However, the country’s labour laws are formal, and compliance failures, especially around severance, bonus payments, and contract structures, can expose companies to significant liability.

Whether you’re hiring local employees or international specialists to support operations in Guatemala, Acumen International’s Global Employer of Record (EOR) solution allows you to do so legally and efficiently, without needing to establish a local legal entity. We take on the employer obligations so you can focus on driving your business forward.

Why Companies Hire in Guatemala

• Regional service hub for Central American operations in agriculture, logistics, and retail
• Cost-efficient labour market with lower total compensation costs than neighbouring countries
• Bilingual talent pool for customer service, IT support, and back-office roles
• Local presence for sales delivery or representation in government-regulated sectors
• Speed to hire with minimal upfront investment via an Emploer of Record partnership

Employment Contracts in Guatemala

A labour relationship is established as soon as an employee begins working, but most employment contracts must be in writing unless they meet very narrow exceptions (e.g. casual agricultural or domestic work lasting under 60 days).

Types of Employment Contracts

• Open-ended (default): Most employment is indefinite by default unless a fixed term is clearly specified.
• Fixed-term: Permissible when tied to a specific project, timeline, or seasonal activity.
• Task-specific: Valid when the employment is clearly linked to a defined piece of work.

Guatemalan law requires that contracts state wages, working hours, duties, leave entitlements, and the nature of employment.

Probation Period

In indefinite contracts, the first two months are considered a probationary period. During this time, either party can terminate employment without legal liability. A shorter period may be agreed, but not longer.

Working Hours and Overtime

• Day shift: Max 8 hours/day, 44 hours/week
• Night shift (6 p.m.–6 a.m.): Max 6 hours/day, 36 hours/week
• Mixed shift (part day/part night): Max 7 hours/day, 42 hours/week
  • If 4+ hours fall at night, the entire shift is classified as night for compensation

Overtime compensation is required for hours worked beyond these limits and must be paid at a premium rate, in line with labour law or collective agreements.

Minimum Wage and Payroll in Guatemala

Current Minimum Wage (as of latest revision):

• Q81.87 per day for general sectors (agricultural and non-agricultural)
• Q74.89 per day in export-oriented maquila sectors
• Monthly bonuses: All minimum wage earners receive a mandatory Q250 bonus
• 13th and 14th salaries: Employees are legally entitled to two full additional salary payments each year—one in mid-year (June bonus) and one in December (Christmas bonus)

Payroll is typically processed monthly, and salaries must be paid in Guatemalan quetzales (GTQ).

Leave and Statutory Holidays

Annual Leave

• Employees are entitled to 15 paid vacation days after 12 months of continuous employment with the same employer.
• Public holidays (approximately 12 annually) are paid and include national and regional observances.

Sick Leave

• The employment contract is suspended, not terminated, during illness.
• There is no legal cap on sick leave, but employees must present medical justification.
• After nine months of incapacity, the contract is considered permanently suspended.
• Disability pensions are available for longer-term conditions.

Maternity and Paternity Leave

• Maternity leave: 30 days before and 54 days after childbirth (total 84 days, fully paid).
  • Employees are also entitled to one hour daily for breastfeeding for up to 10 months.
• Paternity leave: Fathers are entitled to 2 paid days to be present at childbirth.

Termination and Severance

Employer Dismissal

An employer can terminate employment only with just cause as defined in the Labour Code. Acceptable grounds include:

• Serious misconduct (violence, theft, repeated insubordination)
• Excessive unauthorised absences
• Repeated health and safety breaches
• Dishonesty in hiring or performance

Unfair dismissal requires the employer to pay statutory severance, calculated based on service length and salary. Tribunal claims are common in cases where dismissals are challenged.

Employee Resignation

Employees may resign without penalty if the employer:

• Withholds or delays pay
• Harasses or discriminates
• Endangers health and safety
• Unilaterally changes terms of employment

Notice Periods

• Employees must give notice based on tenure:
  • <6 months: 1 week
  • 6–12 months: 10 days
  • 1–5 years: 2 weeks
  • 5+ years: 1 month

Employers generally do not have a statutory notice obligation but must follow strict dismissal rules.

Employee Benefits and Contributions

Mandatory Employer Benefits

• 15 days annual paid leave (after 1 year)
• Paid public holidays
• Paid maternity leave and breastfeeding time
• Sick leave (with medical certification)
• 13th and 14th month salary bonuses
• Mandatory Q250 monthly bonus
• Contributions to:
  • Social Security Institute (IGSS)
  • Professional Training Institute (INTECAP)
  • Housing Fund (INFONAVIT) (depending on company size)

Optional Benefits (Market Practice)

• Private medical coverage (often limited to managerial staff)
• Transport and meal stipends
• Life insurance or funeral assistance
• Flexible working hours or telework (on an informal basis).

How Acumen International Can Help You Hire in Guatemala

Direct Employment Without a Local Entity

Acumen’s EOR solution allows you to legally employ and compensate talent in Guatemala without opening a branch or subsidiary.

Local Compliance, Centrally Managed

We handle employment contracts, registrations, benefits, social contributions, payroll, and termination in full compliance with Guatemalan law.

Custom Support for Complex Hiring

From structuring roles for incentive-based sales to managing hybrid or part-time staff, we tailor employment models to meet your business goals while remaining legally compliant.

Global Mobility Support

Need help with visas or residence permits for foreign staff? We manage immigration support in Guatemala, aligning timelines with employment start dates.

Global Payroll Calculator Access

Use our proprietary tool to estimate net salaries, employer contributions, and total cost of employment in Guatemala—before making hiring decisions.

One Partner Across 190+ Countries

Streamline your global workforce expansion with a single partner for all your employment needs worldwide.