Peru
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- Capital City
Lima
- Currency
Peruvian sol (S/., PEN)
- Languages
Spanish, Quechua, and Aymara
- Population size
32,824,358
Employment termination in Peru
Termination process
Peruvian labor law stipulates that employees can only be terminated when a just cause is provided by the employer. Otherwise, employees who’re let go without any justification are entitled to a severance package of up to 12 months’ pay.
Notice period
Employers are required to provide from six to 30 days’ notice so employees can tender a defense in case they’re dismissed unfairly. Employees who’re let go on a justified basis are not entitled to any prior notice.
Severance pay
Employees are only entitled to severance payments when a termination decision is due to redundancy. Workers who’re dismissed without just cause are entitled to a month’s pay for every year served with an employer, capped at 12 months’ wages.