Legal Update – COVID-19
As a result of the spread of COVID-19, which on March 11 was classified by the World Health Organization as a “Pandemic”, most of the countries have adopted new regulations to face the consequences that the spread of this coronavirus brings with it and in the same sense Nicaragua has taken the following measures.
Legal Update: Companies under the free zone regime – Tripartite Agreement.
In Nicaragua, Article 100 of the Labor Code, establishes that every employer has the obligation to adopt necessary and adequate preventive measures to effectively protect the life and health of their workers, conditioning the physical facilities and providing the necessary work equipment in order to reduce and eliminate risks in workplaces, without prejudice to the regulations that may be issued by the Labor Ministry. In this regard a Tripartite Commission had met on March 23,2020 and it was composed of representatives of the workers of companies under the free zone tax regime, representatives of the employers of companies under the free zone tax regime, the Labor Ministry and the National Free Zone Commission, the latter representing the State of Nicaragua.
Customs procedures for the introduction of household goods for pensioners and rentier residents, and Nicaraguans returning to the country.
As part of our usual work, we have observed an increase in the number of foreign clients that request services related to obtaining a Nicaraguan residence under the category of rentiers or pensioners, as well as Nicaraguans who after a long time residing abroad, have decided to return to our country. In that sense, we have decided to prepare a brief instruction on the steps to follow in customs matters, so that when obtaining residence (in the case of foreigners), or returning to our country (in the case of Nicaraguans) they can take advantage of the benefits granted by law.
Labor Severance Pay Deductions Applicable in Nicaragua
On many occasions we have received inquiries from clients, in most cases, until the employment relationship is going to end, asking if certain deductions can be applied to the employees severance pay resulting from loans granted by the employer or by a Bank to the employee, for amounts paid by the employer in training or studies received by the employee, for employer equipment given to the employee for the performance of his/her work that is not returned at the end of the employment relationship, etc.
Important updates you should be aware of as we start 2020
RESOLUTION No. CD-SIBOIF 1138-1-NOV13-2019, STANDARD ON IMPOSITION OF SANCTIONS TO THE SECURITIES MARKET ENTITIES FOR NON-COMPLIANCE IN THE FIELD OF PREVENTION OF MONEY LAUNDERING, FINANCING TO TERRORISM AND FINANCING TO THE PROLIFERATION OF WEAPONS OF MASS DESTRUCTION, dated November 13, 2019.