Reform to the Labor Code increase fines for labor infractions by employers in El Salvador

Legislative Assembly reforms the Labor Code to increase fines for labor infractions by employers

On October 4, 2022, the Legislative Assembly of El Salvador reformed Art. 627 of the Labor Code to increase the fines for labor infractions against books I, II, and III of the Labor Code and those infractions that do not have a specific penalty. Until now, the Labor Code established a maximum fine of $57.14.

Depending on the number of employees an employer has, the reform sets forth different ranges for fines as follows:

• Employers with up to 10 workers are subject to a fine of up to two months of minimum wages ($730.00) per infraction.
• Employers with 11 to 50 workers are subject to a fine of up to four months of minimum wages ($1,460.00) per infraction.
• Employers with 51 to 100 workers are subject to a fine of up to eight monthly minimum wages ($2,920.00) per infraction.
• Employers with more than 100 workers are subject to a fine of up to twelve monthly minimum wages ($4,380.00) per infraction.

The reform is pending publication to enter into force.

BLP has ample experience advising national and international companies on employment matters in all of Central America.