How to hire remote employees in

Guatemala

Guatemala’s a great place to make a remote hire, if you know how to do it right. If you don’t, you could be unwillingly thrust into months and thousands of dollars of expenses, legal penalties, and more. But we’re going to help you avoid that on this page with information about the easiest way to hire that great talent you’ve found in Guatemala.

Country snapshot

CURRENCY
Quetzal (GTQ)
EMPLOYER TAXES
12.67%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Spanish

What to know before you hire in 

Guatemala

OK, so navigating a new country’s labor laws and hiring process isn’t exactly easy. It isn’t easy at all, really. You’ve got two options: You can hire talent in Guatemala as employees, or you can hire them as contractors. Each has their benefits, depending on what you’re looking for. We’ll cover the details below.

If you want to successfully hire in 

Guatemala

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Guatemala

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Guatemala

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Guatemala

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Guatemala

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Guatemala

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Guatemala

?

If you’re hiring contractors in 

Guatemala

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Guatemala

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Guatemala

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Guatemala than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Guatemala.

Taxes in 

Guatemala

Employer tax

Employer Contributions

  • 12.67%

Individual tax

Leave

Paid Time Off (PTO)

Employees are entitled to 15 days of vacation after their first year of service.  

Public Holidays

There are 12 public holidays.

Sick Days

Sick pay is either paid by the employer or social security, depending on the reason for the sickness, and is paid at 50% of the regular pay rate.

The length of sick pay depends on the length of employment:

  • 2–6 months of employment- 1 month of paid sick leave
  • 6-9 months or employment– 2 months of paid sick leave
  • 9+ months or employment- 3 months of paid sick leave
  • If the employee has not recovered by the time that the sick leave is over, the employment agreement is automatically suspended (“total suspension”) and all employer and employee obligations are put on hold.  In this case, the employee may terminate the employment agreement, however, the employer may not unless under just cause.
  • In addition, the employer may seek to fill the employee’s duties on a temporary basis which can be terminated upon the return of the employee.  

Maternity Leave

Mothers are entitled to 84 days of maternity leave starting from 30 days before the expected due date.   

In the event of a miscarriage or stillbirth, the mother is entitled to 42 days of paid leave. 

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.  

Other Leave

Labor union leader– up to 6 days of paid leave for a member of a union’s executive committee in order to carry out union duties. Such a person may also be entitled to additional unpaid leave.

Judicial summons– half a day of paid leave.

Marriage Leave

5 days paid leave for the wedding of the employee.  

Bereavement Leave

 3 days paid leave in the event of the death of a spouse or child.

Termination

Termination Process

In Guatemala, there is no specific termination procedure other than providing written notice and for just cause.  There are, however, some instances in which the employer must get permission to dismiss an employee:

  • If the employee is pregnant or nursing
  • When an employee is engaging in forming a union
    Union leaders
  • “Collective conflict” under collective bargaining

Notice Period

The notice period varies based on the length of employment:  

  • Up to 6 months- 1 weeks’ notice
  • 6 months- 1 year- At least 10 days’ notice
  • 1-5 years- At least 2 weeks’ notice
  • 5+ years- 1 months’ notice

Severance Pay

Severance payment is only granted when a court finds that an employer was dismissed without just cause.  In this case, the employee is entitled to either be reinstated and back paid from the date of termination or are entitled to severance pay equal to one months’ salary for every year employed.  

In addition to the above, if the employee has received any non-cash benefits such as the use of an employee car, mobile phone, food, etc., they are entitled to an additional 30% of their salary for each year of employment.  

Probation Period

2-months.

Employee requirements in 

Guatemala

Working Hours

The standard workday is 8 hours but cannot exceed 12 hours per day.  However, working hours do not apply to high-level executives or domestic workers. In addition, there are some other classifications of workers that working hours don’t apply to such as caretakers, and doormen.   

Overtime

Anything over 44 hours in a workweek is considered overtime and is paid at a rate of 150% of the regular pay.

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