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Employer of Record Bolivia | Worker Classification and Benefits in Bolivia

An Employer of Record (EOR) in Bolivia serves as a trusted partner for companies, handling various aspects of employment compliance, payroll administration, and statutory obligations on behalf of employers, ensuring smooth operations and compliance with Bolivian labor laws.

Time zoneUTC−04:00
Total Time zones1
Working hours per week40-48
Working weekMonday–Saturday (Many people work Saturdays either half day or full day)
Typical hours worked8
Personal Tax filing deadlineNA for employment income.
Financial Year1st January to 31st December

Worker Classification in Bolivia

In Bolivia, the General Labour Law distinguishes between "workers" and "employees." Workers are individuals who provide material or manual services, while employees typically work in office settings, follow schedules, and engage in intellectual work. Over time, the regulations governing these categories have become more uniform to prevent imbalances. Therefore, in this Q&A, the terms "employees" and "workers" are used interchangeably.

For the purposes of labour law, self-employed individuals and independent contractors are not considered employees or workers. However, these concepts are sometimes misused to disguise an employment relationship and evade certain obligations, such as taxes, social security affiliation, and entitlement to labour rights. It's important to note that misclassifying a worker as an independent contractor is subject to sanctions under the principle of material reality.

Both workers and employees are entitled to the same statutory employment rights, with some exceptions, such as Sunday bonuses. These rights are applicable to both categories, ensuring equal treatment and protection.

Regarding time periods, the general rule is that both workers and employees should be hired under indefinite agreements. However, there are circumstances where fixed-term agreements are permitted.

Fixed Term, Part-Time, and Agency Workers

How are temporary and agency workers' rights and benefits compared to permanent employees? What about the entitlement of part-time workers in relation to full-time workers?

Temporary Workers:

In general, employment contracts are expected to be indefinite in nature. However, there are circumstances where fixed-term contracts or contracts for specific work or services can be entered into.

For such contracts to be valid, they must be in writing and approved by the competent officer at the Ministry of Labour. Failure to obtain approval may render the agreement ineffective, potentially treating it as an indefinite contract with all its associated implications.

Fixed-term contracts are typically used in specific situations, including:

  • Temporary replacement of workers (such as during pregnancy or vacation).
  • Meeting the increased demand for products or production, necessitating an increase in the workforce.
  • Completion of projects with predetermined delivery dates.

Fixed-term contracts can have a maximum duration of one year and may be renewed once for the same period. If the contract is renewed for a second time, regardless of the term, it will be considered an indefinite employment relationship.

An employment contract established for the completion of specific work terminates upon the fulfillment of that work.

In cases where a worker resigns before the contractual term or the completion of the work/service, they will not receive payment for the remaining duration or the incomplete portion of the work/service. Social benefits are provided according to the applicable provisions of the General Labour Law and its regulations.

All labor rights applicable to indefinite contracts also apply to fixed-term agreements.

Agency Workers:

Bolivian labor regulations explicitly prohibit any form of evasion of labor obligations through subcontracting or outsourcing agreements.

The following practices are considered violations of labor laws:

  • Using civil or commercial contracts to conceal employment relationships.
  • Recruiting or providing workforce through subcontracting, outsourcing, or similar practices that do not comply with labor regulations.

Part-Time Workers:

Part-time workers are entitled to receive at least the national minimum wage. Additionally, all social benefits applicable to full-time workers also apply to part-time workers.

In cases where part-time workers are employed by a company that is part of a group of companies, they must receive payment from the entity to which they provide their services.

These provisions ensure that temporary and agency workers, as well as part-time workers, are granted appropriate rights and benefits within the framework of Bolivian labor laws.