Wednesday, October 22, 2008

EXPATRIATES

HIRING EXPATRIATES

05/23/2007

Expatriates contracts are subject to certain limits settled down by law and should comply with an specific procedure.

Limits.-

It is an obligation of the local company which hires foreign personnel to match with the limitations imposed by law as follows:

n Number of foreign workers : Local company will only be able to hire foreign personnel up to 20% of total payroll;

n Salaries : Total salaries of foreign workers can not excess of 30% of the total payroll’s salaries.

A local company can request to discharge these limitations in the following cases :specialized technician and general managers and those who will come to work due to an agreement signed with government agencies.

Requirements.-

All foreigners should credit its professional activity or specialization by attaching all University’s certification and work experience. These documents should come duly legalized by Peruvian Consulate from the foreigner’s country.

Procedure.-

Work Contract procedure .-

The foreigner has to sign a contract, which has to be authorized by the Ministry of Work and Social Promotion. This contract should include some compulsory conditions which are not applied to contracts for local workers . These are to train the national personnel in the same occupation; the employer's commitment of transporting back to its country the foreign worker and the members of its family . certain other clauses are convenient to add for tax reasons.

Certain cases have settled down in which it is not necessary the approval of the work contract taken place with foreigner, such as in the case of the foreigner with Peruvian spouse, ascendancies, descendants or Peruvian siblings. Also, in the case that of a foreign investor with a permanent investment , among others. These foreigners are governed by the same norms of the Peruvian workers.

The work contract is approved during the first 5 labor days counting from the day that all necessary documents have been filed to the Ministry of labor. Documents to be attached to the contracty are those which certifies education and work experience duly legalized in the Peruvian consulate of the country of the foreign worker.

Immigration procedure.-

Once the contract is signed it is necessary to request a Migratory qualification which is given by Immigration authorities. It is very important to keep in mind that a foreign worker can not be included in the payroll if the resident visa has not been issued.

To obtain this migratory qualification, the foreigner ´s documentation should be filed before the Immigration authorities . If he is already in PerĂº he had to have entered the territory with a Business visa, NOT a TOURIST ViSA, then he can request what is so called CHANGE OF MIGRATORY QUALITY, which means that its Business Visa will be changed to a Resident Visa.

This is the usual and more convenient procedure.

Once approved the Change of Migratory Quality to a resident visa , the foreigner will be able to begin working in the country and an identity card will be issued .


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