It is constantly said that there is a lack of qualified labor in Peru. There are delays in the execution of projects and in some cases, the projects even stall. Companies ask for highly competitive professionals, technicians who can increase production, that is, efficient but experienced people to start working immediately.

This can be one of the consequences that the industry would collapse if the qualified personnel for the jobs were not available. More specialists or technicians are required in welding, carpentry, electricians, mechanics, heavy machinery operators, etc. Despite this need, only 8% of the population between 17 and 24 years of age who are in higher education study a technical career.

In Peru at the end of 2014, they brought out a new labor regime for young people between 18 and 24 years old so that they could enter the labor market quickly, but it caused a great controversy because it deprived workers between 18 and 24 years old of various social benefits. . The objective of the program was to encourage the entry of 263 thousand people to the labor market, as a reactivating measure of the economy.

But the analysis of labor problems in Peru has to be more effective, really labor costs such as Compensation for Time of Services (CTS), bonuses, life insurance and complementary insurance of risk work, make the workforce legally contracted in Peru is one of the most expensive countries in South America in reference to labor.

Due to its high costs, the Peruvian labor market has such high levels of informality. It is one of the variables that explain why the labor market in Peru is highly informal. We have one of the most informal economies in the world. Non-salary labor costs, layoff costs are one of the most expensive in the region, it is necessary to try to make labor legislation more flexible.

The hiring of personnel in Peru is governed according to the following LEGISLATIVE DECREE No. 728 dated November 8, 1991, which is in force to date. Fixed or specific term contract: also called Subject to Modality. It is one where the provision of services is given for a specified time and is held for a specific need.

The maximum duration may not exceed 5 years. If this period is exceeded, the worker becomes undetermined. This type of contract must be entered into in writing and must be registered with the Ministry of Labor and Employment Promotion within 15 calendar days of its conclusion. The contract must specify the specific cause of hiring, set a start, and end date.

Regarding Trade Unions according to Peruvian law, according to Supreme Decree No. 010-2003-TR, workers have the right to form a union and, without distinction and prior authorization, to develop and protect their economic and moral interests. Workers are free to join unions on a voluntary basis. As a comment, at present and from my own experience in this type of work there are no unions.

Ministerio del Trabajo y Promoción del Empleo

Avenida Salaverry # 655 – Lima 15072 – Peru

Tel. +511 630-6000

Director General de la Direccion General de Trabajo

Juna Carlos Gutiérrez Azabache

Email. jgutierrez@trabajo.gob.pe

Tel. +511 630 6000 Ext. 3016

Web. www.trabajo.gob.pe  Web. https://www.gob.pe/mtpe

Promocion de Empleo:

www.trabajaperu.gob.pe

www.jovenesproductivos.gob.pe

www.impulsaperu.gob.pe