Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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New Special Economic Zones Law

New Legislation Enacted

Author: Daniela Arevalo, Associate – Littler

Venezuelan President Nicolas Maduro signed a Special Economic Zones law, which will allow the government to offer tax, financial and legal incentives to attract national and international investment in selected regions of the country. The law was sanctioned by the National Assembly on June 30, 2022, and published in the Official Gazette on July 20, 2022.

The law provides for the introduction of three general types of Special Economic Zones (SEZs): (i) SEZs for the Promotion of Exports; (ii) SEZs for the Selective Substitution of Imports (i.e., goods/products predominantly imported and not produced in Venezuela); and (iii) SEZs for Technological Development.

Law on Registration of Criminal Record

New Legislation Enacted

Author: Gabriela Arevalo, Associate – Littler

New Law on the Registration of Criminal Records, published in the Official Gazette No. 6,712 on July 20, 2022, regulates the registration of criminal records to guarantee the rights of individuals and the proper functioning of the justice system, in accordance with the Constitution of the Bolivarian Republic of Venezuela, the international treaties signed and ratified by the Republic, as well as other Venezuelan laws.

The new law guarantees the right to confidentiality of people, and without exception prohibits the employer from requiring job applicants to present their criminal records as an application requirement. Further, the law establishes fines that are 1,000 times the official exchange rate of the currency with the highest value according to the rate published in the Central Bank of Venezuela.

U.S. Dollar Value Increases

Trend

Author: Gabriela Arevalo, Associate – Littler

The bolivar, the currency of Venezuela, was devalued 21% against the U.S. dollar in a week, according to the report offered on August 26, 2022, by the Central Bank of Venezuela (BCV), which places the price of the U.S. currency at 7.85 Bolivars. On August 19, 2022, the dollar closed at 6.18 bolivars in the official market, which represents an increase in the price of 27%, an increase that had not been seen in recent months and that has a direct impact in the prices of goods and services, calculated, for the most part, in U.S. currency.

Minimum Wage in Venezuela Was Devalued Almost 50% Until August 2022

Trend

Author: Gabriela Arevalo, Associate – Littler

On August 31, 2022, the minimum wage of a Venezuelan worker was quoted at USD16.5, calculated at the rate of the Central Bank of Venezuela (BCV). The BCV values the U.S. dollar at 7.86 bolivars per dollar. With the devaluations registered since last March, when President Nicolás Maduro brought workers’ income to 130 bolivars, the minimum wage has lost nearly 50% of its value.

This raises additional challenges for employers to compensate workers for the loss of salary value.

Colombia and Venezuela Resumed Diplomatic Relations

Trend

Author: Daniela Arevalo, Associate – Littler

On August 29, 2022, Venezuela and Colombia formally resumed diplomatic relations. The reopening of the common border between the countries took place on September 26, 2022, with the presence of Colombia’s President Gustavo Petro.

With this action, both countries seek to reestablish binational relations in different areas, betting on cooperation and integration to consolidate significant advances for both peoples. This is an important step toward restoring diplomatic relations and accomplishing economic gains for both countries.