Country Author: Gumucio &

Abogados

The Legal 500 & The In-House Lawyer The Legal 500
Comparative Legal Guide
Bolivia: Employment & Labour Law (3rd edition) Daniel Gumucio Carrasco,
General Director
This country-specific Q&A provides an overview
to employment laws and regulations that may occur dgumucio@lawfirm-gumucio.com
in Bolivia.

This Q&A is part of the global guide to Employment &

Labour Law. For a full list of jurisdictional Q&As
visit http://www.inhouselawyer.co.uk/practice-areas/e
mployment-and-labour-law-3rd-edition/

1. Does an employer need a reason in order to lawfully terminate

an employment relationship? If so, describe what reasons are
lawful in your jurisdiction?

In Bolivia an employer needs a legal reason to terminate an employment relationship

according to the labour law in the 16th article, which means that the employee has to
make, for example:

Damage in work materials.

Reveal industrial secrets

Actions that affect the industrial security.

Leave work for more than six days whit out permission.

Breach of contract

Renounce the work

Stealing in the place of work.

2. What, if any, additional considerations apply if large numbers of
dismissals (redundancies) are planned?

It would have to make agreements between the parties, which are framed in the law.

3. What, if any, additional considerations apply if a worker’s

employment is terminated in the context of a business sale?

All social benefits would have to be paid, including eviction, which means the value of
three additional salaries.

4. What, if any, is the minimum notice period to terminate

employment?

Currently in the legislation of Bolivia, there is no deadline to notify a dismissal. Before

there was a period of 3 months, however, article 12 of the General Labour Law was
repealed by law, and that period was left without legal effect.

5. Is it possible to pay monies out to a worker to end the

employment relationship instead of giving notice?

There is no notice in our legislation, but, regarding payment, the payment of the
eviction could be granted, which is relative to three 3 months of salary.

6. Can an employer require a worker to be on garden leave, that is,

continue to employ and pay a worker during his notice period
 but require him to say at home and not participate in any work?

It does not apply to our legislation.

7. Does an employer have to follow a prescribed procedure to

achieve an effective termination of the employment
relationship? If yes, describe the requirements of that procedure
or procedures.

Yes, a procedure to conclude the labour relationship must necessarily be followed. In

Bolivia, every worker has job stability, according to Article 48 of the Constitution of the
State, so, the employer, before dismissing the employee must perform an internal
summary prior to dismissal, in accordance with Constitutional Judgments No. 1262 /
2013 of August 1, 2013 and SC 0079/2015-R of October 14 and with other related
regulations, the right to due process and the legitimate defence of the worker must be
guaranteed.

8. If the employer does not follow any prescribed procedure as

described in response to question 7, what are the consequences
for the employer?

In case the employer does not perform the procedure described in question seven, the
employee will have the right to choose, between collecting the payment of their social
benefits including the eviction, or request the reinstatement to their source of work, in
accordance with the Decree Supreme 28699. So the consequence for the employer
could be:

That the worker demands the reinstatement of labour.

That the worker demands the payment of all his social benefits, including the fine of the
eviction, being able to accede before a labour judge in case of breach in the payment.
 9. How, if at all, are collective agreements relevant to the
termination of employment?

There are no such collective agreements in our legislation.

10. Does the employer have to obtain the permission of or inform a

third party (e.g local labour authorities or court) before being
able to validly terminate the employment relationship? If yes,
what are the sanctions for breach of this requirement?

It does not apply in our legislation.

11. What protection from discrimination or harassment are workers

entitled to in respect of the termination of employment?

In Bolivia there is Law No. 045 of October 8, 2010 "Law Against Racism and All Forms
of Discrimination". so the Bolivian worker is legally protected in this regard.

Regarding the termination of the work, because of discrimination or harassment, the

worker could:

That the worker demands the reinstatement of labour.

That the worker demands the payment of all his social benefits, including the fine of the
eviction, being able to accede before a labour judge in case of breach in the payment.

12. What are the possible consequences for the employer if a

worker has suffered discrimination or harassment in the context
of termination of employment?
 In addition to those indicated in the answer to question 11, you could sue the employer
in criminal matters.

13. Are any categories of worker (for example, fixed-term workers

or workers on family leave) entitled to specific protection, other
than protection from discrimination or harassment, on the
termination of employment?

Yes, there are workers who have reinforced job stability or commonly known as
immobility, these are:

Those parents who have a child under 1 year of age.

Those who have the legal status of physically "disabled".

Those that belong to the directory of a union.

14. Are workers who have made disclosures in the public interest
(whistleblowers) entitled to any special protection from
termination of employment?

It is not legislated in our legal system.

15. What financial compensation is required under law or custom to

terminate the employment relationship? How do employers
usually decide how much compensation is to be paid?

The labour regulations establishes the type of benefits that a worker must have who
has concluded a work relationship with the employer. In order for these social benefits
to be activated it is necessary that the worker had more than three (3) months old, in
the case of a worker being employed and one (1) month, in case of being a worker.
These benefits vary according to the time worked and if the worker has voluntarily
 resigned or if he has been dismissed. Let's see:

In case of resignation, it would correspond:

Compensation (one salary per year)

Aguinaldo (one salary per year)

Vacation (in case of having more than 1 year old)

Prima (in case the company has obtained profits at the end of the accounting
management)

In case of dismissal, it would correspond:

Eviction (equivalent to three salaries)

Compensation (one salary per year)

Aguinaldo (one salary per year)

Vacation (in case of having more than 1 year old)

Premium (in case the company has obtained profits at the end of the accounting
management)

16. Can an employer reach agreement with a worker on the

termination of employment in which the employee validly
waives his rights in return for a payment? If yes, describe any
limitations that apply.

It can reach an extra-legal agreement, but in which the worker does not renounce his
labour rights, but declares to have received the same, since in Bolivia labour rights are
inalienable by law.

17. Is it possible to restrict a worker from working for competitors

 after the termination of employment? If yes, describe any
relevant requirements or limitations.

It is not possible to restrict the right to work, since it is established in the Constitution
of the State.

18. Can an employer require a worker to keep information relating

to the employer confidential after the termination of
employment?

Yes, you can, as long as the worker signed a confidentiality commitment document.

19. Are employers obliged to provide references to new employers if

these are requested?

Yes, whenever the employer is obliged to issue a work certificate to the worker at the
conclusion of the work relationship

20. What, in your opinion, are the most common difficulties faced by
employers in your jurisdiction when terminating employment
and how do you consider employers can mitigate these?

The labour regime in Bolivia is quite biased in favour of the worker, so it is very
complicated to legally dismiss an employee. It is necessary to apply due process prior
to dismissal, which guarantees due process and the legitimate defence to the worker to
be sanctioned or dismissed.

It is important and basic for the employer, that in the workplace there is a suitable
employment contract and that the memoranda that are issued have the corresponding
legal effectiveness.
21. Are any legal changes planned that are likely to impact on the
way employers in your jurisdiction approach termination of
employment? If so, please describe what impact you foresee
from such changes and how employers can prepare for them?

Under that concept, there is no current change plan.