With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Venezuela. 

01 Overview of the Labor Law System

1.Legal System

Venezuela is governed by the civil law system, in which formal positive law is the main source of law.

2.Resources and Agencies

In Venezuela, the main labor law is the Organic Labor Law (LOTTT) for Workers. The Regulations of the Organic Labor Law and the Partial Regulations on Working Hours are also partially in force. This law, along with the aforementioned regulations, governs the main aspects of individual employment relationships, as well as collective labor aspects (collective bargaining, union rights, among others).

02 Employment Qualifications and Classification

1.Employment Age

Although the age of majority is 18, the minimum age for employment and entering into employment contracts is 14, according to the LOTTT and the Organic Law for the Protection of Children and Adolescents.

2.Qualifications for Employment

In Venezuela, a foreign company cannot directly hire local personnel without having a permanent establishment (such as a duly registered branch, representative office, or affiliate) in the country. Exceptions apply in the case of digital or remote work.

3.Classification of Employment

Venezuelan labor law focuses on employment relations and defines a worker as any natural person who provides personal services under the employment of another natural or legal person and who receives remuneration. The law defines this type of worker as dependent workers. It also defines a non-dependent worker as one who provides services on their own account and, although they are not part of a specific employment regime, they are nevertheless entitled to social security.

4.Foreign Workers

Venezuelan law allows the hiring of foreign workers to provide services in the country under the same conditions and with the same rights as Venezuelan workers, if certain requirements established in the LOTTT (Employment Law) are met. Article 29 gives preference to foreigners who have Venezuelan children, are married to Venezuelan citizens, have established their domicile in the country, or have resided in Venezuela for at least five years.

03 Recruitment and Employment Contracts

1.Background Examination

There is no legal provision that expressly prohibits background checks or the consultation of personal references of a job applicant, provided that such practice respects the rights to privacy, intimacy, and honor enshrined in the National Constitution. Likewise, pre-employment medical examinations are legal, provided they are justified by a job evaluation and the candidate's informed consent is obtained.

2.Contract Types

There are three types of employment contracts (Article 60 of the LOTTT), namely:

• An indefinite time employment contract

• Fixed-term employment contract

• An employment contract for a specific project

3.Probationary Period

The probationary period must be expressly agreed upon, so it will only be valid in written contracts. According to national jurisprudence, the establishment of a probationary period is incompatible with the signing of a fixed-term contract.

04 Working Standards

1.Remuneration and Statutory Benefits

Labor compensation is primarily composed of salary, non-salary social benefits, and legal employment benefits. Salary is defined in Article 104 of the LOTTT which basically reflects the definition of Convention 95 of the International Labor Organization ("ILO") and refers to the remuneration, profit, or advantage that accrues to the worker for the provision of services and is evaluable in money.

2.Social Security and Employment Taxes

In Venezuela there is a universal social security system, made up of three (3) benefit systems and six (6) benefit regimes. These 3 benefit systems are:

• Health;

• Social Security;

• Housing and Habitat.

3.Working Hours

The daily shift must include at least one (1) hour of intra-shift meal breaks.

Regarding overtime, except in urgent cases, overtime may only be worked with prior authorization from the Labor Inspectorate. For this purpose, the employer must send a written statement to the Labor Inspectorate justifying the reasons for requiring overtime.

4.Rest and Leave

In Venezuela, workers are required to have two (2) consecutive weekly rest days, one of which must fall on Sunday. These rest days must be full days.

05 Occupational Health and Special Protection

1.Occupational Health and Security

The Organic Law on Prevention, Working Conditions, and Environment (LOPCYMAT) and its regulations establish minimum occupational health and safety requirements that all employers with one or more employees must comply with in order to safeguard the health and safety of their workers and prevent occupational diseases and the occurrence of work-related accidents.

2.Special Protection

In Venezuela, there are special labor protections for various groups considered vulnerable, with the aim of guaranteeing equal opportunities, preventing discrimination, and promoting decent working conditions. These include:

• Women

• People with Disabilities

• Indigenous Peoples

• Older Adults

• Working Youth

06 Personal Information and Privacy

1.General Rules

Unlike other countries, there is no special, general law for the protection of personal data; rather, its content is scattered throughout various laws, such as the Special Law against Computer Crimes.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

The LOTTT establishes protective standards that prevent discrimination and harassment. In the case of discrimination, Article 21 of the LOTTT stipulates that any type of employment discrimination based on race, sex, age, marital status, union membership, religion, political opinions, nationality, sexual orientation, disability, or social origin is prohibited.

Regarding harassment, the law has been strict, prohibiting workplace harassment and sexual harassment. 

08 Internal Policies

1.Applicability

Internal policies for the management and administration of human talent can be applied. This is a common practice in companies, especially multinationals with operations in the country. These internal policies are applied to all employees in the organization without distinction.

2.Validity

A fundamental requirement for the application of an internal policy is that the worker has been notified of its existence, is aware of its content, and that it meets acceptable standards. These standards basically imply that the policy does not contravene Venezuelan regulations and is not discriminatory.

3.Whistleblowing

Internal procedures for reporting irregularities, such as non-compliance with codes of conduct by a member of the organization, exist primarily in multinationals or large companies. In small and medium-sized enterprises (SMEs), it is difficult to find these types of internal control mechanisms, meaning workers have the option of reporting any irregularity to the labor inspectorate, provided it involves the violation of a labor right.

09 Transactions

1.Employment Relationship

In cases of mergers, acquisitions, or transfers, regulated in Venezuela as cases of employer substitution, individual and collective employment contracts and existing working conditions are not affected. Pursuant to the Law, the replaced employer shall be jointly and severally liable with the new employer for the employees' labor obligations for up to a period of 5 years. After this period, the new employer shall be solely responsible for such employment relationships.

2.Compensation

No additional payment or compensation is established for workers in the event of a merger, acquisition, or transfer of capital or assets. The Law only regulates that the replacement of an employer must be notified to the workers in advance, and if the employee has any objection to said replacement, they may, within the following three months, demand termination of the employment relationship and demand payment of any corresponding compensation.

10 Termination of Employment

1.Termination Grounds

An employer cannot fire an employee for any reason. First, labor law is governed by the principle of job stability, which means that dismissal can only occur if there is a legally justified cause and after compliance with the corresponding procedures. Management workers (senior executives) are an exception.

2.Termination Procedure

When any of the offenses requiring justified dismissal by an employee arise, the employer must, within 30 days of the occurrence of the offense, initiate the procedure for classifying the offenses and request the corresponding authorization to dismiss from the Labor Inspectorate.

3.Severance and Compensation

Dismissals can only be justified and previously authorized by the competent authority in Venezuela. Severance pay equivalent to the amount due to social benefits in the event of termination of the employment relationship for reasons beyond the employee's control, or in cases of dismissal without justifiable reasons when the employee expresses his or her intention not to file a request for reinstatement.

4.Wrongful Termination

In the case of unjustified dismissals, the employee may, within 30 days of dismissal, file a complaint with the Labor Inspectorate and request reinstatement of the violated legal status (reinstatement), as well as payment of lost wages and other benefits.

5.Mass termination and Layoffs

A mass layoff will be considered when it affects a number equal to or greater than ten percent of the workers in a work entity with more than one hundred workers, or twenty percent of a work entity with more than fifty workers, or ten workers in a work entity with fewer than fifty within a period of three months, or even more if the circumstances make it critical. 

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

It is common for employment contracts to contain confidentiality clauses, especially in the case of employees involved in business management or whose duties give them access to privileged information. These confidentiality agreements can be applied to all employees regardless of their level of responsibility, but in reality, the implementation of the confidentiality clause varies depending on the employee's duties.

2.Non-Compete and Non-Solicitation

Under Venezuelan law, it is possible to agree to non-competition clauses, which are locally referred to as "prohibition of unfair competition." These agreements are commonly observed in senior management positions that have a direct impact on business operations, but not in average positions.

12 Work Representation and Trade Unions

1.Work Representation

According to labor legislation, the main form of worker association and representation are unions. However, there are other worker representation organizations, such as Prevention Delegates, Productive Workers' Councils, and Labor Directors for public sector entities.

2.Trade Unions

Unions in Venezuela can be employer- or worker-based. Employer-based unions represent employers and can be organized in chambers by the economic sector they represent. In the case of worker-based unions, these can be:

• Company unions

• Professional, arts, or trade unions

• Industrial unions

• Sectoral unions

13 Dispute Resolution

1.Procedures & Enforcement

In Venezuela, the resolution of labor disputes is primarily governed by the LOTTT and the Organic Labor Procedural Law (LOPT) .

2.Waiver & Enforcement

In Venezuela, the principle of non-waivability of labor rights governs, so under no circumstances may the rights contained in rules and regulations of any nature and hierarchy that favor workers be waived. However, it is possible to enter into settlement agreements at the end of the employment relationship, in which both parties make reciprocal concessions and without violating the non-waivability of labor rights, thus preventing any litigation.

14 Others

1.Latest Development & Trends

For international investors, key issues to monitor include potential reforms in severance pay, family leave policies, stricter occupational health and safety enforcement following workplace accidents, evolving rules on foreign workers under the International Workforce Law, and the broader impact of global ESG and supply chain compliance obligations on Turkish subsidiaries and contractors.

2.Cultural and Religious Considerations

From a cultural and religious perspective, Venezuela has established national holidays, which typically stem from historical or religious customs. Likewise, each region of the country may, due to cultural or religious customs, establish non-working holidays that apply only to that municipality, city, or state and which must also be treated as a holiday for the purposes of the law.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

César Uzcátegui is a partner of the LANDÁEZ firm, and the Head of Labor and Employment Department of the Firm, with more than 20 years of experience in the labor area, practicing both litigation, consulting and advice to the business field, being a lawyer and consultant for a large number of companies in Venezuela, both local and transnational. 

Liliana García is a partner of the LANDÁEZ firm, where she has worked in the area of labor matters for more than 12 years. With experience in resolving labor-related conflicts in administrative and judicial settings, and in advising and consulting companies on Labor Law. She has served as an external auditor for different companies. She stands out in the preparation of calculations and labor costs, participating in the management and administration of payrolls and other labor benefits. 

Translator

Zhou Hao, Master of Laws, Associate at Anli Partners. Areas of expertise: Labor Law, Dispute Resolution, ESG Compliance.