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Special Contracts for the Manufacturing Industry and the Software Development Sector

On September 13, 2018, the Labor Ministry signed the Ministerial Decree No. MDT-2018-0192, that establishes new regulations regarding special contracts for the sectors of manufacturing and software development.

The aim of the Decree is to regulate the labor relations within the normal objective of the business. Hence, the application of this Decree exempts employees who carry out administrative functions and activities that do not correspond specifically to these sectors.

In this respect, you need to know the following:

1. These sectors must subscribe a Full Time Labor Contract for the duration of the project.
2. Working week of this contract is 20-40 hours, which may be distributed up to 6 days, until per 8 hours each.
3. It is mandatory that the employers shall request for approval of schedules before Labor Ministry (LM), record of contracts in the Web Portal of LM within 10 days since them subscriptions, and, notify the Social Security Institute regarding to the employees.
4. In order to calculate the remuneration, the formula determined in the Decree must be observed.
5. The extraordinary and supplementary hours will be paid with a surcharge of 50% and 100%, respectively, in accordance with the labor Code.
6. Upon agreement between the parties, the proportional values of the labor benefits may be paid on a prorated basis, in accordance with the Decree.
7. Employers solely can apply this contract for new recruits.

Finally, this Decree must be published in the Official Register in order to come into force.