LATAM : Foreign Investors Survey 2017
“ In Costa Rica , labor regulations are absolutely competitive and clear in their application by the courts .”
RAFAEL QUIROS , FOUNDING PARTNER , CENTRAL LAW
In the case of Guatemala , Alfredo Rodríguez Mahuad , Partner of Consortium Legal , mentions that “ In general terms , labor regulations are attractive . There is constitutional and legal protection for the worker but it is still tolerable for the investor .” In addition , José Guillermo Bonilla , Partner of Bonilla , Argueta Zarceño & Alvarado , explains that labor standards in Guatemala have been relatively stable for the last twenty years but “ currently there is a tendency to control compliance with the Conventions signed by the State of Guatemala in labor matters , specifically Convention 169 of the International Labor Organization ( ILO ) on Indigenous and Tribal Peoples .”
In Panama , labor regulations are considered attractive because “ it offers foreigners the option of acquiring permanent residence and work permits in accordance to the investments they make in the country ,” says José Agustín Preciado , of Fabrego , Molino , Mulino . The Panamanian regulations also “ allow the hiring of foreign personnel who assists in the development of the various labor areas within the company .”
Paraguay has a lax labor regime , interesting for the investor , with low minimum wages and low demands .
On the other hand , in countries such as Bolivia , Colombia , Brazil and Argentina , current labor standards can be a clear drag on foreign investment .
In Bolivia , where the legislation tends to benefit the worker more than the employer , Carlos Pinto , Partner of Ferrere , explains that “ there are rigid principles that , for example , ensure the worker ’ s inalienability and an indefinite employment relationship is presumed . Also , it is prohibited to outsource services when they relate to the purpose of the company .”
In Colombia , labor regulations are neither as serious on an individual level nor burdensome on a collective level as they are in other countries of the Region , but they are a factor that the investor must consider when structuring their business .
For Andoni Hernández Bengoa , Counsel in Foreign Law of Demarest Advogados in Sao Paulo , “ the Brazilian regulatory framework for labor relations is extremely challenging ( more for practical application and established customs than for the norms themselves ). Having said that , as I have already heard a successful entrepreneur mention , the ability to manage that reality better than the average can be a significant competitive advantage . This capacity often comes from good advice and knowledge in the structuring and management of occupational risk .”
The model of Cuba is particular : “ The recruitment of personnel by foreign investors must be done through Employing Agencies , who cede the labor . This is an unusual regime , but it is well established and has been operating very satisfactorily in the sectors with the highest tradition of foreign investment , such as the hotelier ,” explains Juan José Cigarrán Magán , Partner of Cigarrán y Asociados .
Significant progress in tranSparency and anti-corruption
The countries of the Region , aware of the lack of transparency and the high degree of corruption for the investor , have made a great effort both in legal and administrative matters in recent years . Many countries have signed international conventions and treaties such as the Inter-American Convention against Corruption and the United Nations Convention against Corruption . In addition , Chile and Mexico are members of the OECD , as a consequence they adopt their policies .
Although corruption has not completely disappeared , an adequate regulatory framework exists in all survey countries except Peru , where nothing has changed with the new government . In some countries , it is still necessary to work on its strict application .
The country that , according to the respondents , takes the medal is Uruguay , as it has the lowest corruption rate in Latin America according to the rankings of Transparency International and World Audit , where it reaches positions 21 ( corruption perception index ) and 18 worldwide , respectively .
Costa Rica also has a very attractive profile in this regard . There are “ modern laws on transparency and anti-corruption , which are still under constant review . Unlike other countries in Latin America ,
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