Legal Updates: MTESS Resolution No. 1,290/2024 on the Granting of Vacations to Private Sector Workers

On December 13, 2024, the Ministry of Labor, Employment and Social Security (MTESS) approved Resolution No. 1,290/2024, which establishes detailed regulations on the granting of vacations to private sector workers under the Labor Code. This new regulation aims to ensure proper compliance with this fundamental labor right, providing clear rules for the granting, payment, accumulation, fractionation and interruption of vacations, in order to protect both workers and employers.

Key points of the Resolution:

Purpose and Scope of Application : The purpose of this regulation is to regulate the granting of vacations to employees in the private sector, whose relationship is governed by the Labor Code. It establishes the bases for the correct implementation of the right to vacations, promoting a balanced labor relationship.

Duration of Vacation: Vacation time is calculated according to the employee's seniority, based on the date of entry into the company. Thus, the right to enjoy vacations is generated upon completion of one year of work, and subsequently, it will be accumulated for each new annual cycle of service.

Remuneration during Vacation: The worker must receive payment for vacations before taking them, calculating the remuneration based on his/her usual salary. This remuneration cannot be less than the legal minimum wage, and the receipt of payment must include: company letterhead, date of issue, employee data (names, surnames and identity card number), amount received, period of vacations used, number of vacation days, signature of the worker and signature of the employer. The original receipt will remain with the employer and the duplicate will be given to the worker.

Planning and Communication of Vacations: The employer has the obligation to plan the vacations, communicating the exact date to the worker at least fifteen (15) business days in advance. If it is the worker who requests the vacations, he/she must also submit the request with the same advance notice.

Time limit for granting vacations: Vacations must be granted within six (6) months of their accrual. If the employer does not grant the vacations within this period, he will be forced to pay double the corresponding remuneration.

Vacation Accumulation: The worker may request the accumulation of his/her vacations for up to two (2) years, provided that a formal request is submitted. This mechanism allows workers not to lose the right to rest, in case for work reasons they cannot take their days off in the corresponding period.

Holiday Interruption: In exceptional situations of urgent need, the employer may interrupt the employee's holiday, but the employee may resume it at a later time. If the employee incurs expenses to return to his/her post due to the interruption, the employer must reimburse these expenses within 48 hours.

Vacation Splitting: Vacation splitting may only be requested by the worker in periods of no less than six (6) business days. This option provides greater flexibility, allowing the rest to be distributed throughout the year. In no case may the splitting of vacations imply the waiver of the remaining time, and the worker may split the vacations during the year in the following ways:

a) In two (2) parts, the workers who have the right to twelve (12) days.

b) Up to three (3) parts for those workers who have the right to eighteen (18) and thirty (30) days.

Prohibitions: The resolution prohibits the use of other types of leave as if they were part of the vacation, which ensures that rest benefits are not confused or replaced by other types of leave. In addition, during the fractionation of the vacation, rest interruption will not be applied, provided that the minimum of six days of continuous rest is met.

Implications of the Resolution:

MTESS Resolution No. 1,290/2024 is a measure that seeks to provide greater clarity and certainty to both workers and employers regarding the right to vacations, regulating situations that may generate conflicts, such as the planning of breaks, the fractioning and interruption of vacations. The regulation reinforces the importance of guaranteeing an adequate rest period, which is key to the well-being of workers and the efficiency of the workforce.

Impact on the Private Sector:

With the approval of this resolution, Paraguay takes a step forward in improving its labor legislation, promoting greater protection of workers' rights. The resolution not only improves workers' conditions, but also provides employers with a clear regulatory framework that allows them to properly plan vacation management within their operations, reducing potential labor conflicts.

In conclusion, the approved regulation strengthens Paraguayan labor legislation, ensuring that the right to vacations is respected and facilitating a more balanced and fair work environment for all actors involved.