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Employment Termination in Paraguay

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Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences.

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Notice period

Employers are mandated to provide at least a day’s notice before terminating an employee.

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Severance pay

Employees who’re terminated without any justification are entitled to 15 days’ pay for every year of employment. On the other hand, employees who’re terminated with just cause are not entitled to a severance package – provided they don’t appeal the termination, in which case they will be entitled to the standard severance pay.

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Probation periods

Probation periods in Paraguay can last anywhere from 30 days for unqualified employees or domestic workers, to 60 days for qualified workers and apprentices.