Littler Global Guide - Venezuela - Q3 2023

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Provision of Work Uniforms Cannot be Replaced by Money

Precedential Decision by Judiciary or Regulatory Agency

Author: Daniela Arevalo, Associate – Littler

On August 2, 2023, the Social Cassation Chamber of the Supreme Court of Justice established in Sentence No. 328 the inadmissibility of the monetary substitution of the benefits related to the provision of uniforms, safety boots, washing, towels, soaps, toothpaste and raincoats, stipulated in the Collective Contract.

In this regard, the Court stated that the replacement of workers' rights with money should be understood as an exception and not the norm. The objective of the benefits agreed in the Collective Agreement correspond to the improvement of the working conditions of the workers, the protection of their health and integrity and the savings on their clothing during the provision of their service. The benefits in question must not be used for commercial purposes. The benefits agreed in the Collective Agreement must be fulfilled as agreed, unless there is a provision to the contrary that allows more favorable conditions for workers and their families.

Bonuses Granted to Executives Who Are Shareholders

Precedential Decision by Judiciary or Regulatory Agency

Author: Gabriela Arevalo, Associate – Littler

The Social Chamber of the Supreme Court issued decision N° 397, dated August 11, 2023, holding that it is possible for a labor and corporate relationship to coexist for shareholders who perform directive or managerial functions. Likewise, the Court considered that the bonuses granted to managers and the board of directors were derived from the status of shareholder, but not from the character of being a worker, and, therefore, such payments cannot be considered part of the salary.

New Technical Standards for the Occupational Health and Safety Program

New Regulation or Official Guidance

Author: Daniel Jaime, Associate – Littler

The new technical standard NT-04-2023 was published on September 12, 2023, and establishes the way all employers must implement the Health and Safety program.

The new regulation establishes the following conditions: (1) employees must participate in the program through a general payroll call and approval by a simple majority; (2) the INPSASEL guidelines and forms to collect information on accidents at work must be complied with when providing personal protective equipment and investigating illnesses; (3) fees for the registration of the program must be paid; and (4) companies should develop or adapt their programs to this new standard within 30 continuous days as of the date of publication of this new standard.

Requirements to Register the Occupational Health and Safety Program and Service

New Regulation or Official Guidance

Author: Daniel Jaime, Associate – Littler

On September 12, 2023, the Occupational and Health Safety Agency published two rulings (N° 244 and 245), setting forth new obligations and fees to register for the Occupational Health and Safety Program and the Occupational Health and Safety Service. The rulings also set the fees to be paid for these registrations, fixed in the Venezuelan cryptocurrency (PETRO), to be paid in local currency (bolivars) and based on the number of employees in the company.

INCES Issued New Obligation to Update Employers Data

Important Action by Regulatory Agency

Author: Gabriela Arevalo, Associate – Littler

On September 1, 2023, the National Socialist Training Institute (INCES) issued a notification through its website to update the process that employing entities must carry out. According to the notification, work entities have a period of 45 business days from September 11, 2023, to update their data in the INCES electronic registry through the online system. This period ends on November 14, 2023. Information that must be updated includes: (1) company's articles of incorporation and its modifications, (2) the identification of the partners and the legal representative, (3) Tax Identification Record (RIF) and Labor Identification Number (NIL), (4) Certificate of the National Registry of Parafiscal Contributions (RNCP), and (5) number of active workers.

Taxpayers have the formal duty to update their data within the established period as provided for under the Law of INCES and the Organic Tax Code. Failure to comply with these formal duties may result in a sanction of closure for five continuous days and a fine of 100 times the highest value currency published by the Central Bank of Venezuela.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.