Employer of Record Guide in 

Venezuela

Vacation Leave

Venezuelan employees are entitled to paid vacation based on length of service:

• Vacation Pay: Regular salary plus vacation bonus
• Scheduling: Must be scheduled by mutual agreement
• Payout: Unused vacation must be paid upon termination

Sick Leave

• Paid Sick Leave: Up to 3 days without medical certificate
• Extended Sick Leave: Requires medical certification
• Social Security Coverage: IVSS provides benefits for extended illness
• Job Protection: Position must be held during legitimate sick leave

Maternity Leave

• Total Duration: 20 weeks
• Pre-birth: 6 weeks before expected delivery
• Post-birth: 14 weeks after delivery
• Payment: Full salary during leave period
• Job Protection: Guaranteed return to same or equivalent position

Paternity Leave

• Duration: 14 consecutive days
• Timing: Must be taken within first 6 months after birth
• Payment: Full salary during leave
• Documentation: Birth certificate required

Other Statutory Leave

• Bereavement Leave: 3-5 days for immediate family
• Marriage Leave: 3 days for employee's wedding
• Medical Appointments: Time off for medical consultations
• Civic Duties: Leave for voting, jury duty, military service

Summary

Termination Types

Termination With Just Cause:

• No severance required
• Must involve serious misconduct or breach of contract
• Requires proper documentation and due process

Termination Without Cause:

• Requires advance notice or payment in lieu
• Severance payments mandatory
• Must comply with LOTTT procedures

Notice Period Requirements

Notice periods vary based on employment duration and position level:

Severance Pay

Venezuelan severance calculations are complex and include multiple components:

Basic Severance:

• 30 days' salary per year of service (first 2 years)
• 60 days' salary per year of service (after 2 years)

Additional Payments:

• Accrued vacation pay
• Proportional 13th month bonus
• Outstanding overtime or bonuses

Legal Protections

Employees are protected from termination based on:

• Pregnancy or maternity leave
• Union activities or membership
• Filing labour complaints
• Discrimination based on protected characteristics

Final Pay Requirements

Employers must provide final settlement within:

• Voluntary resignation: 5 business days
• Termination: Immediately upon termination
• Components: All accrued wages, benefits, and severance

National Public Holidays

Venezuela observes the following national holidays:

Regional Holidays

Individual states and municipalities may observe additional holidays:

• Regional Saints' Days: Vary by location
• Local Commemorations: Municipal-specific observances
• Cultural Celebrations: Regional festivals and events

Holiday Pay Requirements

• Regular Pay: Employees receive normal salary for public holidays
• Work on Holidays: Double pay plus compensatory day off
• Eligibility: All employees entitled regardless of tenure

Required Documents for Employment

Employment Contract Requirements:

• Job title and description
• Salary and benefits structure
• Working hours and location
• Termination clauses compliant with LOTTT

Government Documentation:

• Cédula de Identidad: Venezuelan national ID card
• Tax Registration (RIF): For tax withholding purposes
• Social Security Registration: IVSS enrollment
• Work Permit: For foreign nationals (if applicable)

Work Authorization

Venezuelan Nationals:

• Cédula de Identidad required
• No additional work authorization needed

Foreign Nationals:

• Valid work visa or residence permit
• Labour Ministry authorization may be required
• Compliance with immigration regulations

Background Checks

• Criminal Record Check: May be required for certain positions
• Professional Verification: Education and experience confirmation
• Reference Checks: Previous employment verification
• Medical Examinations: Required for specific industries

Social Security Registration

All employees must be registered with:

• IVSS: Social security system
• FAOV: Housing fund
• INCE: Training institute
• Recreation Fund: Employee welfare programs

Banking and Payment Setup

• Bank Account: Venezuelan bank account typically required
• Payment Method: Direct deposit or cash payment options
• Currency: Payments must be in Venezuelan Bolívars (VES)

Onboarding Timeline

Worker Classification

Venezuelan labour law strictly distinguishes between employees and independent contractors:

Employees (Trabajadores):

• Subject to LOTTT protections
• Entitled to benefits and social security
• Employer controls work methods and schedule
• Integrated into company operations

Independent Contractors (Contratistas):

• Governed by commercial law
• Responsible for own taxes and social security
• Maintain operational independence
• Provide services to multiple clients

Note: Misclassification can result in significant penalties and retroactive benefit payments.

Union Relations

Venezuela has strong labour union traditions:

• Right to Organize: Protected under constitution and LOTTT
• Collective Bargaining: Common in many industries
• Strike Rights: Legal with proper procedures
• Union Dues: May be automatically deducted from wages

Cultural Considerations

Communication Style:

• Personal relationships important in business
• Formal address common in initial interactions
• Spanish language proficiency essential

Work-Life Balance:

• Family obligations highly valued
• Flexible scheduling often appreciated
• Religious observances respected

Business Practices:

• Punctuality expectations may vary
• Relationship-building crucial for success
• Hierarchical structures common

Economic Considerations

Currency Volatility:

• Frequent exchange rate fluctuations
• Government price controls in some sectors
• Multiple exchange rate systems may apply

Regulatory Environment:

• Complex bureaucratic procedures
• Frequent regulatory changes
• Government approval required for certain activities

Remote Work Framework

Legal Status:

• Remote work regulations established during COVID-19
• Employer must provide necessary equipment
• Health and safety obligations extend to home offices

Technology Requirements:

• Reliable internet connectivity essential
• Equipment and software provision by employer
• Data security and confidentiality measures required

This guide provides general information about hiring in Venezuela. Due to the complexity and frequent changes in Venezuelan labour law, professional legal consultation is strongly recommended before making employment decisions.