The regulation for the granting of the benefit of the fund for the protection of employment in Guatemala
On April 17, 2020, the Governmental Agreement number 58-2020 of the Ministry of Economy, was published in the Diario de Centro America. The agreement contains the Regulation for the Granting of the Benefit of the Protection Employment Fund, which enters into force on April 18. The following aspects must be considered:
1. The benefit of the fund for the protection of employment is granted in the amount of Q. 75.00 per day. The bonus is in favor of each worker in the private sector whose suspension of work contracts has been authorized by the Ministry of Labor and Social Security, for through the General Labor Inspectorate. Also, for those employers who are not in the exceptional cases established in the regulatory provisions issued as a consequence of the State of Public Calamity.
2. The mentioned bond will be delivered by bank deposit, transfer to the worker's account, or by any other means or instrument available from the Crédito Hipotecario Nacional.
3. The bonus granted is exempt from any deduction, withholding and tax.
4. The Ministry of Economy, in coordination with the Ministry of Labor and Social Welfare, are the institutions in charge of authorizing El Crédito Hipotecario Nacional to make effective the benefit regulated in these regulations.
5. A specific electronic platform was created for this purpose (www.mineco.gob.gt), and this procedure must be followed:
a. The employer or legal representative will enter the electronic platform described and enter the data required in the application form, attaching the authorization for suspension of contracts issued by the Ministry of Labor and Social Welfare and other supporting documentation needed in said form.
b. Before accepting the submitted application for processing. The Ministry of Economy, through the specific institution (Directorate of Business Financial Services of the Vice Ministry of Development of Micro, Small and Medium-sized Enterprises), must verify that the suspension of work has been authorized by the Ministry of Labor and Social Welfare. Also, it is a consequence of the State of Public Calamity and the regulatory provisions decreed by the Executive Body and ratified by the Congress of the Republic.
c. The Ministry of Economy, through the competent authority, will issue the authorization for the payment of the bond established in these regulations, setting the days and amount, calculating the date of the payment period.
d. The Ministry of Economy, through the aforementioned competent authority, will send the authorization to El Crédito Hipotecario Nacional to carry out the accreditation using a bank deposit, transfer to the worker's account, or by any other means or instrument available.
This communication is informative; it does not constitute advice on the matter. In case of any query or support you need, we are at your service