On May 14, 2025, the Organic Law Amending Various Laws Regarding Age Discrimination and Equal Treatment in the Labor System was published in the Official Registry.

This law introduces several amendments to the Labor Code and the Organic Law of the National Public Procurement System. Below is a summary of the key reforms:

Amendments to the Labor Code:

1. Introduction of Article 42.2 – New Training Requirements:

• Employers must provide a minimum of 10 hours of annual training for all payroll employees on topics that promote a positive work environment, including the prevention and elimination of all forms of violence, particularly age discrimination.
• The Ministry of Labor will be responsible for verifying compliance through inspections and will establish the parameters for submitting evidence of training.

2. Introduction of Article 42.3 – New Employer Obligation:

• This article explicitly states: “Employers with twenty-five or more workers must employ at least one worker aged forty (40) or older (…).”
• Companies with more than 25 employees must ensure that at least 1% of their workforce is composed of workers aged 40 or older.
• Note: The law also establishes that this obligation may not be lower than 4% of the total workforce. It is implied that this will be implemented progressively, although no timeline is specified.
• Employers who hire individuals over the age of 40 who have been unemployed for at least six months prior to hiring will receive non-financial benefits.
• The Ministry of Labor will annually publish a list of employers recognized for good practices and will implement non-financial incentive programs.

3. Introduction of Article 42.4 – Penalties for Non-Compliance:

Employers who fail to comply will be subject to daily fines ranging from USD 10 to USD 20 until the obligation is fulfilled.

4. Amendments to Article 44 – Employer Prohibitions:

• Prohibits restricting job advertisements based on age, except in exceptional cases determined by the Ministry of Labor.
• Prohibits requiring health or life insurance policies related to degenerative or catastrophic illnesses during the recruitment process.
• Prohibits setting age limits for promotions, training, or other incentives.
• Prohibits terminating employment on the grounds of age or due to harassment or violence intended to pressure a resignation.
• Prohibits age-based discrimination, harassment, and violence in the workplace.

5. Amendment to Article 46:

• Job applicants over 40 years of age who feel discriminated against may request a reasoned response from the employer explaining the rejection.
• Enables affected individuals to pursue legal and constitutional remedies.

Key Amendments to the Organic Law of the National Public Procurement System:

1. Introduction of Article 25.2:

Preference will be given to bidders employing local, qualified labor registered with the Ministry of Labor’s Employment Program.

Transitional Provision – Third Clause:

Within 180 days from the publication of this Law, the Ministry of Labor must, through a Ministerial Agreement, determine the scope and application of non-financial incentives for companies that hire individuals over the age of 40 who have been unemployed for at least six months prior to their hiring.

For additional information, please contact: laboral@bustamantefabara.com

Prepared by: Assocaite Daniela Dávila C.