How does the vacation policy work in Peru?

In Peru, employees are entitled to 30 calendar days of paid vacation leave per year if they have completed one year of continuous employment with Remote.

• If the employee has taken unpaid time off within the first year, the employee and the Customer can agree to push back the start date of the paid time off entitlement.
  Example: If the employee starts work on 1 June 2022 and has taken 8 unpaid time off in 2022, the employee’s entitlement to the 30 days vacation can kick in on 8 June, 2023 instead of June 1, 2023.

Ideally, the 30 days of vacation should be taken as uninterrupted time off. However, upon a written request from the employee, it is possible to split the vacation as follows:

Spanish version: 

• “reduccion o venta de vacaciones”: Employees must take their vacation within the year of their entitlement, otherwise, they will be entitled to compensation equivalent to their regular salary. This is without prejudice to any economic fines that the labor authority may impose.
  • Cash-out is only possible in the second block. It means that the employee can cash out only for the 15 unused vacation days and has to use a minimum of 15 days of vacation within a year.
• An agreement must be in place between the employee and the Customer to make some exceptions:
  • Employees must document requests to split their vacation time using a format that is signed by the employee, as indicated by our legislation. This agreement and the cash out of vacation time must be completed before the vacation expires.
  • Employees can accrue up to 60 calendar days (2 periods) of paid vacation days. However, after the first year of employment, taking at least 7 days of vacation is mandatory. If employees wish to carry over any unused vacation days, both parties must agree, and a contract amendment is required to record this information. The vacation accrual agreement should only be used in exceptional cases and signed prior to the expiration of vacation time.
  • You can find the required format here.
• Vacation days should be scheduled and agreed upon by the parties involved. If no agreement is reached, the employer has the final decision.
• The annual leave and sick leave cannot be merged in the same period. Sick leave should always be prevalent.