Guatemala

Employers must have due reason to terminate an employee, as well as provide written notice.

Certain cases require judicial approval, such as the dismissal of pregnant or nursing employees, employees in the process of unionizing, or any dismissal where a collective conflict has been notified to a labor judge. Collective agreements may establish dismissal procedures, which the employer must follow.

Employers must provide written notice before dismissal, as follows:

• Under six months: one week’s notice

• Between six and 12 months: 10 days' notice

• Between one and five years: two weeks' notice

• Over five years: one month’s notice

Collective bargaining and employment contracts may stipulate longer notice periods

If an employee who has worked for at least two months is dismissed without just cause, they are entitled to severance pay of one month’s salary for each year of service (based on the previous six months). Non-cash benefits are also due to those employees, equal to an additional 30% of the severance amount to be paid. If this severance is not paid, the employee can sue the employer in a labor court.

The first two months of an indefinite contract constitute a probationary period. During this probation, either party may terminate the contract (provided the reason is legal).