FTC regulated: Yes

Remarks

Fixed term contracts are regulated with the Law Decree Nº 16187 of 1979

Valid reasons for FTC use: objective and material reasons

Remarks

Art. 2 of Law Decree Nº 16187: FTC are not allowed for permanent tasks or for those that are characteristic of the business.

See also: Resolución Ministerial 283/62 of 13 June 1962 according to which the contract should, by default, be considered as a contract of undefinite duration, unless the nature of the task, work or service, justifies the conclusion of a FTC.

See also the principle of "labour stability" established under Article 11 of Supreme Decree No. 28699, of 1st May 2006.

Maximum number of successive FTCs: 2

Remarks

Art. 2 of the Law Decree Nº 16187

Maximum cumulative duration of successive FTCs: 12month(s)

Remarks

Resolución Ministerial N º 283/62 del 13 de junio de 1962

Maximum probationary (trial) period: 3 month(s)

Remarks

Art. 13 of the Labour Code: When an employer or worker is dismissed for a reason other than his/her own will, the employer must compensate him/her for the service, with the amount of one month salary for every year of work. If the time of service does not amount to one year, compensation will be proportional to the number of worked months, excluding the three first months which are considered probationary period. If the employee has worked for more than 8 years, he/she will perceive the compensation even if he/she voluntarily leaves the job.

Note: Supreme Decree No. 17289, of 1980, exempts certain categories of workers from the probationary period of Article 13 of the Labour Code.

Valid grounds (justified dismissal): worker's conduct

Remarks

Art. 16 of the Labour Code sets out the following causes for the termination of employment and in these cases there is no entitlement to severance pay or compensation:
a) Intentional material damage to working tools/ instruments
b) Revelation of industrial secrets
c) Imprudence or omission impacting industrial security or hygiene
d) Partial or complete breach of agreement
e) Larceny or robbery committed by the employee

Prohibited grounds: marital status, pregnancy, colour, sex, sexual orientation, religion, political opinion, nationality/national origin, age, trade union membership and activities, disabilities, financial status, language, birth, ethnic origin

Remarks

With the adoption of Supreme Decree No. 28699, of 1st May 2006, any dismissal that is based on grounds that are not included in the list established by Article 16 LC is to be considered against labour stability; and the worker affected can request the Labour Authority to order his/her reinstatement.
Therefore, only the grounds based on worker’s conduct are not prohibited (Art. 10, Supreme Decree No. 28699).

Art. 14 of the Bolivian Constitution
Regarding trade union membership and activities, only the leaders of workers' organizations are protected; they cannot be dismissed without prior authorization from the Labour Court. (Art. 2 of the Legislative Decree No. 37 of 7 February 1944).

Maternity protection: Article 61 of the Labour Code; Supreme Decree No. 12 of 19 February 2009

Protection of workers with disabilities (and their family members, under certain conditions): Supreme Decree No 27477, of 6 May 2004

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with disabilities

Remarks

Article 14 of the Constitution: General provision against discrimination

Trade union leaders: Under Art. 14 of the Bolivian Constitution, with respect to trade union membership and activities, only the leaders of workers' organizations are protected; they cannot be dismissed without prior authorization from the Labour Court. (Art. 2 of the Legislative Decree No. 37 of 7 February 1944).

Maternity protection: Article 61 of the Labour Code; Supreme Decree No. 12 of 19 February 2009

Protection of workers with disabilities (and their family members, under certain conditions): Supreme Decree No 27477, of 6 May 2004

Notification to the worker to be dismissed: no specific form required

Notice period:

Remarks

Art. 12 of the LC provides for the following notice periods:

1. Labour contract with workers (”obreros"):
a.) 1 week of advance notice for contracts longer than one month;
b.) 15 days of advance notice for contracts longer than six months;
c.) 30 days of advance notice period for contracts longer than one year.

2. Labour contracts with employees ("empleados") require a notice period of 90 days if the contract has been consecutively longer than 3 months.

Note: the difference between “worker” and “employee” can be found in Article 2 of the Labour Code; the difference is based on the nature of the tasks for which they are contracted.

Pay in lieu of notice: Yes

Remarks

Art. 12 of the Labour Code

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Definition of collective dismissal (number of employees concerned): Collective dismissal is not defined by law. Article 14 of the Labour Code provides that in case of cease of activities due to bankruptcy or "verified losses" ("peridas comprobadas"), the compensation shall be half of the usual amount, and workers credits shall be given priority.

Prior consultations with trade unions (workers' representatives): No

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: No

Severance pay:

Remarks

Art. 13 of the Labour Code: When an employer or worker is dismissed for a reason other than his/her own will, the employer must compensate him/her for the service, with the amount of one month salary for every year of work. If the time of service does not amount to one year, compensation will be proportional to the number of worked months, excluding the three first months which are considered probationary period. If the employee has worked for more than 8 years, he/she will perceive the compensation even if he/she voluntarily leaves the job.

No severance pay if the worker was dismissed with just cause.

tenure ≥ 6 months: 0.25 month(s)

tenure ≥ 9 months: 0.5 month(s)

tenure ≥ 1 year: 1 month(s)

tenure ≥ 4 years: 4 month(s)

tenure ≥ 5 years: 5 month(s)

tenure ≥ 10 years: 10 month(s)

tenure ≥ 20 years: 20 month(s)

Redundancy payment:

Remarks

Article 14 of the Labour Code provides that in case of cease of activities due to bankruptcy or verified losses ("peridas comprobadas"), the compensation shallbe half of the the usual amount, and workers credits shall be given priority.

tenure ≥ 6 months: 0.12 month(s)

tenure ≥ 9 months: 0.25 month(s)

tenure ≥ 1 year: 0.5 month(s)

tenure ≥ 2 years: 1 month(s)

tenure ≥ 4 years: 2 month(s)

tenure ≥ 5 years: 2.5 month(s)

tenure ≥ 10 years: 5 month(s)

tenure ≥ 20 years: 10 month(s)

Compensation for unfair dismissal - free determination by court: No

Remarks

See Article 13 LC (above)

Reinstatement available: Yes

Remarks

Articles 10 and 11 of Supreme Decree No. 28699 provides for the possibility for employees to choose between reinstatement or compensation in case of unfair dismissal.
If the employee opts for reinstatement, he/she can request the Labour Authority to issue a reinstatement order, provided that the dismissal is proved to be unjustified.

Preliminary mandatory conciliation: No

Remarks

Only for collective labour disputes

Competent court(s) / tribunal(s): labour court

Remarks

The procedure is governed by the Code on Labour Procedure, 1979, (Código de procedimiento laboral 1979)

Existing arbitration: No

Remarks

Only in the case of collective labour disputes.

Note: In 2015, a new law on arbitration and conciliation was approved (Ley No. 708 of 25 June 2015), which explicitly excludes labour relations from its scope (Art. 5).