Beyond being a legal obligation for employers, there are several benefits for companies when their content is adjusted to the reality and current situation of their business.

The Internal Labor Regulation (ILR) is an instrument that regulates the rights, obligations and prohibitions between the employer and the workers.

Having an ILR authorized by the Ministry of Labor and Social Welfare, including updates related to Occupational Health and Safety and COVID-19, is an obligation for all companies with 10 or more workers. However, beyond being a legal obligation for employers, there are several benefits for companies when their content is adjusted to the reality and current situation of their business.

Here are 3 of the main benefits:

  • The ILR can establish guidelines and policies applicable to each business, which regulate day-to-day labor-management relations, for example, different types of working hours in which the company can carry out the development of its activity, the attributions of the jobs, administrative procedures to request licenses (with or without pay) and internal policies, among others. Therefore, since it is duly established in the ILR, the employer establishes the clear rules that will govern the employment relationship, and therefore, reduces the possibility of conflicts with the workers.
  • By virtue of the Occupational Health and Safety regulations issued in 2014 and its reforms, as well as the obligations imposed on employers related to biosafety measures due to the COVID-19 pandemic, it is mandatory that the ILR contains the respective section. The General Labor Inspectorate verifies that employers comply with this requirement, that is, it is not enough to have an ILR approved by the Ministry of Labor and Social Welfare, but it must be updated and contain what is related to Health and Safety Occupational.

Therefore, having the ILR updated and approved by the Ministry of Labor will prevent you from committing a labor offense and imposing a fine that ranges from 8 to 16 current minimum wages and that currently represents a fine between Q.22,600.80 (US $ 2,935.00) and Q.45,201.60 (US $ 5,870.00).

  • The ILR establishes the internal disciplinary administrative procedure and the sanctions to be imposed on workers who commit a labor offense. It is common that the disciplinary measures section is not developed and is only limited to listing the type of sanction (verbal, written reprimand, suspension without pay and termination with just cause) without developing the graduation of the offenses and the procedure that should continue, employers squandering the opportunity to develop a robust and comprehensive disciplinary system. Having an outdated ILR and detached from the day-to-day reality of the company can represent a limitation for any employer who sees the need to admonish workers who fail to comply with their obligations and / or internal policies. Likewise, the improper application of the disciplinary procedure entails serious repercussions for the company if it must defend a termination of the employment relationship with just cause, since the probability of success in a labor dispute of this nature can be compromised if it is not followed. the proper procedure. On the contrary, if the employer has an updated ILR, it will be able to impose disciplinary sanctions in an appropriate way, having a greater probability of success in the event of a labor dispute of this nature.

It is important to highlight that there are more advantages of having an updated Internal Labor Regulation, approved by the Ministry of Labor and Social Welfare, and attached to the reality of the business; however, we list the most important ones and those that usually cause inconveniences to employers.