BLP – Newsflash: New Year’s holiday in Central America
New Year’s holiday
The celebration of New Year’s Day is regulated within the region in the following manner
New Year’s Day represents a compulsory payment day, which is applicable from 12 noon on December 31 to a full day on January 1. If an employee works from 12 noon on December 31 or on January 1, payment must be made with a surcharge equal to double his ordinary salary, as stipulated in the Labor Code, articles 127, 128 and 129.
January 1 is a national holiday with an agreement under which an employee who works the day will be paid double the salary corresponding to the ordinary day in proportion to the time worked, without prejudice to the right of the worker to any other rest day in the week.
According to Article 190 of the Labor Code, January 1 is a compulsory holiday in the entire country and must be paid with basic salary, without the employee being obliged to work.
The employees who, in agreement with their employer, work this day, will earn an extraordinary salary composed of the ordinary salary plus a 100% surcharge. If they work overtime, the calculation for surcharges will be made based on the extraordinary salary established for the holiday.
Employees of companies dedicated to public services or essential to the community, as well as those dedicated to fun and recreation, the sale of basic necessities, hotels, restaurants, and work that for technical or practical reasons require continuity, are required to work the day of rest in the number designated by the employer. In this case, the employees will maintain their right to extraordinary remuneration for work done during the day off.
The current Labor Code does not establish a holiday on January 1 but leaves to the discretion of employees of the Executive Branch to declare it as a holiday with the benefit of a salary or a vacation account. In the case of private companies, employers and employees can agree to declare a day off.
In accordance with Article 14 of the Labor Code, January 1 is declared a compulsory payment holiday, meaning that employers who have a weekly payment method (non-commercial activity) in which remuneration is paid only for the days worked, will have the obligation to add the payment of this day in a simple way for the day not worked.
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