Venezuela (VE)
Oil-rich South American nation with dramatic landscapes from the Andes to Angel Falls and the Caribbean coast, experiencing economic recovery after years of crisis, with a warm culture and very low cost of living for dollar-earning expats.
Employment Rights
Sick leave, dismissal protection and red flags in Venezuela.
Venezuela's primary labour law is LOTTT (Ley Orgánica del Trabajo, los Trabajadores y las Trabajadoras), enacted in 2012 and amended since. LOTTT is strongly pro-worker and provides extensive protections including inamovilidad laboral (dismissal protection), generous leave entitlements, and the Prestaciones Sociales seniority fund. For expats, the key practical realities are: (1) foreign workers cannot exceed 10% of company headcount; (2) a work permit from MPPPTT (Ministry of Labour) is mandatory before any employment; (3) the dual-currency economy means most formal compensation packages include a VES payroll component plus an informal USD supplement; (4) Prestaciones Sociales (the seniority fund) is a major employer cost that accrues monthly in your favour. The MPPPTT (mppptt.gob.ve) is the enforcement authority. Labour courts (Tribunales del Trabajo) handle disputes.
Sick leave
Rules: LOTTT grants employees up to 52 weeks of sick leave. For the first 3 days, the employer typically pays 100% of salary (through the contractual/collective agreement — not directly mandated by LOTTT for all sectors but standard in practice). From day 4 onwards, IVSS (social security) covers the sick worker through its subsidy scheme (Subsidio por Enfermedad) at 66.67% of the reference daily wage. IVSS sick pay has historically been severely reduced in real value due to bolívar depreciation — private sector employers usually top up to 100% of the USD supplement. An IVSS medical certificate (reposo) is required from day 1 for coverage.
Doctor note: Day 1 — IVSS medical certificate (reposo médico) required from the first day of absence for IVSS coverage. A certificado médico from a private doctor is accepted by most employers for the first few days.
Employer pay: Days 1–3: typically 100% of formal salary by employer (contractual practice). Days 4+: IVSS subsidy at 66.67% of reference wage. Most private employers in the USD supplement economy top up informally to maintain effective pay.
Long-term: Workers with serious illness documented by IVSS can receive extended sick leave up to 52 weeks. After 52 weeks, disability evaluation (Incapacidad Parcial or Total Permanente) by IVSS determines ongoing benefit eligibility. IVSS disability benefits are paid in VES and are very modest in USD terms — private disability insurance is strongly recommended.
Dismissal protection
Law: LOTTT provides exceptionally strong dismissal protection. The inamovilidad laboral (employment protection) concept is central: employees can only be dismissed for justified cause (causa justificada) as specifically listed in LOTTT Articles 79 and 80 (e.g., serious misconduct, fraud, violence in the workplace). Unjustified dismissal requires the employer to either reinstate the worker or pay indemnity (indemnización) equivalent to the Prestaciones Sociales accumulated plus an additional penalty equivalent to 30 days salary per year of service. Presidential inamovilidad decrees (renewed annually) have periodically extended general protection against dismissal — check current decree status. MPPPTT mediation is required before most dismissals can be legally executed.
Deadline to sue: Labour claims must be filed at the competent Tribunal del Trabajo within 1 year of the dismissal or the labour rights violation. MPPPTT mediation (Junta de Conciliación) typically precedes formal court action and must be attempted first.
Probation
LOTTT Article 45 permits a probation period (período de prueba) of up to 90 days (3 months) for new employees. During probation, either party can terminate without cause and without Prestaciones Sociales liability accruing beyond the statutory minimum. However, dismissal during pregnancy — even in probation — is prohibited (inamovilidad). After probation, full LOTTT protections apply including Prestaciones Sociales. Probation must be agreed in writing at the time of contract signing.
Notice periods
Notice (preaviso) under LOTTT: employees and employers must give notice before termination. Employee notice to employer: 15 days for up to 1 year of service; 30 days for 1–5 years; 45 days for 5–10 years; 60 days for more than 10 years. Employer notice to employee: same schedule, or payment of salary in lieu of notice. In practice, most terminations in the private sector are negotiated directly between employer and worker with a separation payment (liquidación) that includes Prestaciones, notice pay, accrued vacation, and any other owed benefits.
Working time
Max hours: LOTTT limits the standard working week to 40 hours for day shift workers. Day shift (jornada diurna): 8 hours/day, 40 hours/week. Night shift (jornada nocturna): 7 hours/day, 35 hours/week. Mixed shift: 7.5 hours/day, 37.5 hours/week. Absolute maximum: 48 hours/week including overtime. Young workers (14–18 years): maximum 6 hours/day, 30 hours/week.
Min rest: Minimum daily rest: 1 uninterrupted hour for meals (not counted in working hours). Minimum weekly rest: 2 consecutive days (usually Saturday–Sunday), or the employer must provide an equivalent compensatory rest. Between shifts: minimum 11 consecutive hours of rest between working days.
Overtime: Overtime (horas extras) is permitted up to 2 hours/day and 10 hours/week maximum. Overtime pay rates: Day overtime: 125% of regular hourly rate. Night overtime: 150%. Holiday overtime: 200%. Overtime worked on mandatory rest days: 200% plus the rest day entitlement. Total overtime in any year cannot exceed 100 hours. Workers cannot waive overtime rights — any contractual waiver is null and void.
Vacation
LOTTT provides generous vacation entitlement. In the first year: 15 continuous days of paid vacation (días hábiles — working days). From the second year onwards: 15 days plus 1 additional day per year of service, up to a maximum of 15 extra days (i.e., 30 working days total after 15 years). Vacation bonus (bono vacacional): separate from the vacation time — a minimum of 7 days salary in year 1, plus 1 additional day per year, minimum. Most collective agreements and larger employers provide significantly more than the legal minimum. Vacation must actually be taken — compensation in lieu is prohibited except on termination. Accumulated untaken vacation is paid on liquidation.
Anti-discrimination
LOTTT Article 21 prohibits discrimination on grounds of sex, age, civil status, union membership, political opinion, nationality, religion, race, disability, or any other discriminatory distinction. The Venezuelan Constitution (Article 89) also protects worker equality. MPPPTT receives discrimination complaints. In practice, enforcement is uneven — Venezuelan courts take gender discrimination seriously, particularly pregnancy-related inamovilidad (absolute protection from dismissal during pregnancy and 2 years post-birth). Foreign worker nationality discrimination is addressed through the work permit quota system (10% headcount cap) rather than anti-discrimination law.
Contract red flags
- !No written contract — insist on a written contrato de trabajo signed before you start work.
- !No Prestaciones Sociales clause — the employer is legally obligated to deposit monthly into a fideicomiso (bank trust); if the contract does not mention it, insist on a specific clause.
- !No USD supplement documentation — if a verbal USD complement is promised but not written, you have no legal claim to it if it is withheld.
- !Contract denominated entirely in bolívares with no USD link — rapid bolívar depreciation will erode your real pay rapidly.
- !Probation period longer than 90 days — any period beyond 3 months is legally void; you are entitled to full LOTTT protection.
- !Signing any document waiving overtime, vacation, or Prestaciones rights — all such waivers are null under LOTTT.
- !No IVSS registration — employer must register you with IVSS within 3 days of starting work; unregistered workers have no IVSS health, disability, or pension coverage.
- !Work permit condition: your employment is conditional on a work permit (permiso de trabajo from MPPPTT) — if the permit is refused, any work already performed must still be paid.
- !No Cestaticket provision — mandatory food voucher programme must be included in your employment package.
- !Excessive restrictive covenant or non-compete clauses — Venezuelan law limits enforceability of non-competes to reasonable scope and duration; excessive clauses are void.
Employment Rights
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