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Guatemala

Section 7. Worker Rights

e. Acceptable Conditions of Work

The law sets national minimum wages for agricultural and nonagricultural work and for work in garment factories. The minimum wage for agricultural and nonagricultural work and for work in export-sector-regime factories did not meet the minimum food budget for a family of five.

The legal workweek is 48 hours with at least one paid 24-hour rest period. Workers are not to work more than 12 hours a day. The law provides for 12 paid annual holidays and paid vacation of 15 working days after one year’s work. Daily and weekly maximum hour limits do not apply to domestic workers. Workers in the formal sector receive the standard pay for a day’s work for official annual holidays. Time-and-a-half pay is required for overtime work, and the law prohibits excessive compulsory overtime.

The government sets occupational health and safety (OSH) standards that were inadequate and not current for all industries. The government did not effectively enforce OSH laws. Penalties for OSH violations were not commensurate with those for crimes such as negligence. The situation worsened during the pandemic. Many manufacturing facilities, including textile and clothing manufacturing, as well as call centers were exempted from otherwise strict lockdown protocols within days of the March state of calamity. The press reported numerous outbreaks in such facilities until the end of August, when mask usage increased and sanitary measures were properly implemented in the workforce. Among the factories affected was KP Textiles, a garment factory supplying GAP; American Eagle; and Amazon, where more than 200 workers tested positive for COVID-19 and whose owners originally refused to take precautions or allow labor inspectors to enter. While the factory eventually was inspected and shut down, it opened again and was not fined. The law does not provide for the right of workers to remove themselves from situations that endanger health or safety without jeopardy to their employment.

Inspectors often lacked vehicles or fuel to carry out inspections, and in some cases they failed to take effective action to gain access to worksites in response to employers’ refusal to permit labor inspectors access to facilities. Inspectors were encouraged to seek police assistance as required. Inspections were generally not comprehensive, and if complaint driven, focused on investigating the alleged violation rather than attempting to maximize limited resources to determine compliance beyond the individual complaint. From March to early April, Ministry of Labor inspections were suspended. Approximately half the unit returned in April and focused on inspecting possible violations of COVID-19 guidelines and hygiene. By August inspectors had returned to normal operations but with a large backlog of labor hearings due to the closed courts.

The Ministry of Labor conducted inspections to monitor compliance with minimum wage law provisions but often lacked the necessary vehicles or fuel to enable inspectors to enforce the law, especially in the agricultural and informal sectors. The ministry did not employ a sufficient number of labor inspectors to deter violations, and many of them performed reviews on paper or administrative duties rather than clearly defined inspection duties. During the pandemic the ministry closed its offices to the public, and workers were unable to present complaints in person. The ministry established a hotline to receive complaints, but workers stated that often no one answered their calls. The ministry later developed a web portal for complaints, but not all workers had access to internet. The number of inspections conducted decreased during the pandemic.

On July 9, the Ministry of Labor issued a ministerial accord allowing certain businesses to suspend the payment of worker’s midyear bonus due to financial hardship caused by the pandemic. The Constitutional Court invalidated the accord, however, and ordered businesses to make the bonus payments on time and in full, in accordance with the law. On July 8, the ministry reported that it would enforce compliance with payment of the bonus, which must be paid to all workers during the first two weeks of July, and emphasized the benefit must be paid by companies that continued operations during the COVID-19 emergency. Ministry inspectors shifted focus in July from COVID-19 hygiene inspections to the bonus payments but had limited staff to complete the inspections. In addition the ministry noted it had coordinated with two banks and a federation of credit and savings cooperatives so that employers affected by the pandemic would have access to the working capital credit fund and fulfill their labor obligations. The ministry also announced that employers who were not financially able to pay the bonus had to inform ministry officials through an affidavit as established by law.

Labor inspectors reported uncovering numerous instances of overtime abuse, but effective enforcement was undermined due to inadequate fines and labor courts’ reluctance to use compulsory measures, such as increased fines and referrals to the criminal courts, to obtain compliance. During the pandemic these issues worsened as the labor courts closed to the public, performing minimal administrative duties as officials tried to work from home. Other factors contributing to the lack of effective enforcement included labor court inefficiencies, employer refusal to permit labor inspectors to enter facilities or provide access to payroll records and other documentation, and inspectors’ lack of follow-up inspections in the face of such refusals. In one case in June, a business protested the presence of a congressional deputy and a PDH official in an attempted labor inspection. Members of the business community accused the PDH of performing inspections without permission and without the ministry, although ministry presence is not legally required for the PDH to inspect facilities. The business community agreed the PDH has a right to inspect but said the PDH did not always follow official protocols. Due to inefficient and lengthy court proceedings, the resolution of labor court cases was often delayed, in many instances for several years. Employers failing to provide a safe workplace were rarely sanctioned, and a law requiring companies with more than 50 employees to provide onsite medical facilities for their workers was not enforced.

The Solidarity Center explained that almost all organized labor activity ceased during the pandemic as elderly trade union officials were unwilling or unable to venture outside their homes and equally unwilling to cede authority to younger union leaders. Nonetheless, trade union leaders and human rights groups reported employers required workers to work overtime without legally mandated premium pay. Management often manipulated employer-provided transportation to worksites to force employees to work overtime, especially in export processing zones located in isolated areas with limited transportation alternatives. Noncompliance with minimum wage provisions in the agricultural and informal sectors was widespread. Advocacy groups estimated the vast majority of workers in rural areas who engaged in daylong employment did not receive the wages, benefits, or social security allocations required by law. Many employers in the agricultural sector reportedly conditioned payment of the minimum daily wage on excessive production quotas that workers generally were unable to meet. To meet the quota, workers felt compelled to work extra hours, sometimes bringing family members, including children, to help with the work. Because of having to work beyond the maximum allowed hours per day, workers received less than the minimum wage for the day and did not receive the required overtime pay. According to ILO statistics, 74 percent of the workforce worked in the informal sector and outside the basic protections afforded by law.

Local unions highlighted and protested violations by employers who failed to pay employer and employee contributions to the national social security system despite employee contribution deductions from workers’ paychecks. These violations, particularly common in export and agricultural industries, resulted in limiting or denying employees’ access to the public health system and reducing or underpaying workers’ pension benefits during their retirement years.

Many employers of domestic servants routinely paid below minimum wage, failed to register their employees with the Guatemalan Institute of Social Security, and demanded 16-hour days for six or more days a week for live-in staff. Many of these same employees were summarily dismissed at the beginning of the pandemic or advised to stay in the home of their employer without traveling back to their own families or communities for fear of spreading the virus. An undetermined number of dismissed employees returned to their previous employers as conditions stabilized.

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