Peru updates

Arbitration & ADR

Facultative arbitration as a means of developing collective bargaining agreements
  • Peru
  • March 02 2017

Arbitration in labour matters has increased in popularity in Peru since 2011, when Supreme Decree 014-2011-TR, which modified the Collective Labour Relations Law, entered into force. One of the arbitration processes available is facultative arbitration, which is based on the principle that one party's willingness is sufficient to commence the process. Thus, if direct negotiation between parties fails, either party can force the other to engage in arbitration.

Employment & Benefits

Dismissals based on loss of trust
  • Peru
  • December 07 2016

The Constitutional Court has held on numerous occasions that employees in management positions or positions of trust can be dismissed if the employer loses trust in the employee. In these cases, the employer must pay indemnity, as loss of trust is not a legal basis for dismissal. However, a recent Supreme Court of Justice decision determined that an employee who has held such a position since the employment relationship began is not entitled to indemnity when dismissed due to a loss of trust.

What are your obligations regarding disabled employees?
  • Peru
  • August 17 2016

The General Law for People with Disabilities established a legal framework to promote, protect and uphold the rights of disabled people. Peru has since taken several measures to ensure that the right of disabled employees to enjoy favourable work conditions is upheld, including introducing a legal quota for disabled employees and imposing new obligations on employers to make reasonable adjustments in the workplace.

New decree requires employers to establish workplace nursing room
  • Peru
  • June 22 2016

A recent government decree requires employers to establish a nursing mother's milk extraction area that fulfils certain criteria at any workplace with 20 or more female employees of a fertile age (ie, between 15 years old and 49 years old). The purpose of the decree is to promote nursing and provide working mothers with facilities to express and preserve breast milk. Employers that fail to comply with the decree could face an inspection and a fine.


Insurance for new products and new channels for insurance: evolving trends
  • Peru
  • July 26 2016

Technological development has resulted in the extensive production of new, relatively expensive products, which in turn has led to the introduction of simpler and more convenient insurance products. While existing legislation has proven to be adequate at promoting massive insurance, the pace at which high-tech products are being developed and the manner in which the purchasing of insurance is evolving have enhanced the need for a regulatory update.

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