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How to hire remote employees in
So you want to hire in Peru. That means you’ll have to make a decision: Do you want to hire your new remote talent as employees, or do you want to hire them as contractors? Conventional wisdom might say employees, but hiring abroad is hardly conventional—below, we’ll cover what you need to know about your options.
If you want to successfully hire in
Peru
, you have two options:
Laws about hiring contractors are significantly more simple in
Peru
. 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 Thera for.
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
Peru
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
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
Peru
.
Hiring employees takes months, at the minimum. When you hire with Thera'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 costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. 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.
Hiring contractors in
Peru
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.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
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.
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.
If you’re hiring contractors in
Peru
, you can pay them with Thera 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.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Peru 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 Peru.
PTO is calculated by the:
There are 12 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Mothers are entitled to 98 days of fully paid leave paid by ESSALUD through the company.
10 days paid by the employer.
Not required.
None.
None.
None.
Employees may be terminated on objective grounds or for cause, with documentation.
In general, employees should get a minimum of six calendar days of written notice so that the employee can respond in writing or 30 calendar days to prove his/her capability.
The dismissal decision and reason should also be provided in writing to the trade union and the employee. Employees which are dismissed without cause are generally entitled to severance pay for up to 12 months.
When resigning employees must give at least 30 days’ notice.
Generally, an employer must provide an employee a minimum of six calendar days of notice so that the employee can present a written defense to any charges against him or her, or 30 calendar days to prove the employee’s performance capability or to correct any error.
There is no need for notice if the employee has exhibited serious misconduct under which it would be unreasonable to require the employer to continue the employment relationship.
The probationary period may last three months.
When the work requires training and adaptation or when the nature of the work requires it, an extension may be granted. Such extensions must be done in writing and may not exceed:
Full-time employment is 8 hours per day and 48 hours per week.
The compensation for overtime hours should be agreed upon by the employer and the employee.
However, the first 2 hours cannot be compensated with less than 25% of the total remuneration of the employee.
For every additional hour, the surcharge cannot be less than 35% per hour.
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