Labor law in Nicaragua

A worker is a natural person who performs paid work under direction and subordination. An employer can include a contractor or subcontractor. Employment rights are minimum guarantees and cannot generally be waived. Equal treatment applies, including equal pay for equal work. At least 90% of a company’s employees should be Nicaraguan, although MITRAB may allow an exception for technical reasons. MITRAB is Nicaragua’s Ministry of Labour, responsible for inspections, approvals, workplace administration and several conciliation procedures. Nicaragua’s Caribbean regions may use local languages in addition to Spanish, and some employment documents may need to be bilingual. Public-sector employment can also follow special statutes. An employment contract may be oral or written. A written contract is made in two copies and states the place and date, the parties, the work and workplace, daily or weekly hours, whether the schedule is daytime, mixed or nighttime, the fixed or indefinite duration, the pay and payment method, and the signatures. Oral contracts are permitted for field work, domestic service and temporary or occasional work lasting no more than 10 days. The employer must provide a work certificate within three days where the applicable rule requires it. Employers pay the agreed wage, provide employment and wage records, allow inspections and union access, and prevent harassment and sexual blackmail. Workers perform the agreed work and hours, follow lawful instructions and safety rules, protect confidential information, work carefully and avoid alcohol, drugs and sexual coercion at work. Daytime work runs from 6:00 a.m. to 8:00 p.m. and is limited to eight hours per day and 48 hours per week. Night work runs from 8:00 p.m. to 6:00 a.m. and is limited to seven hours per day and 42 hours per week. Mixed work is limited to 7.5 hours per day and 45 hours per week. Work classified as unhealthy is limited to six hours per day and does not permit overtime. A continuous shift includes a paid 30-minute break. Overtime is generally voluntary, limited to three hours per day and nine hours per week, and paid at an additional 100%. The seventh day and public holidays are also paid as extraordinary work when worked. Six working days give rise to one paid rest day. National holidays include January 1, Maundy Thursday, Good Friday, May 1, July 19, September 14 and 15, and December 8 and 25. Additional 2026 dates are January 18, February 2 and 21, and November 8. Local asueto rules can add other days; Managua has local holidays on August 1 and 10. Workers receive 15 consecutive paid days of leave for each six months of uninterrupted work. Employers prepare the leave schedule, and unused leave is calculated proportionally when employment ends. State employment can follow a special calendar. Wages are paid in legal currency. Workers are normally paid no less than weekly, while employees are normally paid no less than every 15 days. A late payment creates a surcharge from the second week of delay at one tenth for each week of delay. The seventh day is paid. The minimum wage is protected from seizure except for family-support obligations. The décimo-tercer mes is one monthly wage for a full year or a proportional amount for a shorter period. It is paid from December 1 to 10 or within 10 days after employment ends. Each day of delay creates a daily-wage penalty, and the payment is exempt from tax and contributions under the applicable Code. The MITRAB Act or Agreement 02-2026 sets minimum wages from March 1, 2026 through February 28, 2027 at C$6,188.02 for agriculture including food, C$9,409.09 for fishing, C$11,113.46 for mines and quarries, C$8,320.48 for manufacturing, C$6,519.58 for micro and small artisanal or tourism industries, C$11,350.08 for electricity, gas, water, commerce, restaurants, hotels, transport, storage and communications, C$13,848.23 for construction, financial institutions and insurance, C$8,674.94 for community, social and personal services, and C$7,716.70 for central and municipal government. The special regime and free-trade-zone minimum is C$9,986.46 for January 1 through December 31, 2026, reflecting a 6.7% increase. An agreed wage above the minimum does not automatically fall when the minimum changes, and performance or piece-rate standards cannot be reduced to defeat the applicable wage guarantee. The Occupational Hygiene and Safety Law, Ley 618, and the Labor Code require preventive measures, safe facilities, free personal protective equipment, training, hazard signs and workplace health and safety committees. An employer reports a workplace accident to MITRAB and INSS within 24 hours. INSS is Nicaragua’s Social Security Institute. An employer can be liable when social insurance registration or contributions are missing. After an accident, the employer should return the worker to a suitable job when the worker remains able to work. Occupational diseases and special workplace risks receive protection. Ley 648 prohibits discrimination, and a pregnancy test cannot be required as a condition for access to employment. Sexual harassment is also prohibited. A pregnant worker whose duties are dangerous receives equivalent safe work without a reduction in pay. Maternity leave covers four weeks before and eight weeks after birth, or ten weeks after a multiple birth. This period counts for seniority, leave and the thirteenth-month payment. Breastfeeding time is 15 minutes every three hours and counts as working time. A company with more than 30 women must provide a breastfeeding room. Dismissal during pregnancy or the pre- and postnatal periods requires prior authorization for just cause from MITRAB. The minimum working age is 14. Work may not damage a minor’s education, health or development. Minors may not perform dangerous, unhealthy, nighttime, toxic, mining, underground or nightclub work, and their schedule is limited to six hours per day and 30 hours per week. They receive equal pay, social protection and access to training. The law distinguishes contractual capacity by age, but the protective rules for minors prevail. Seasonal agricultural work follows MITRAB rules on harvest periods, working time, rest, leave, hygiene, pay, food, housing, transport and education. An employer provides transport for field work when the workplace is more than two kilometers away. Domestic service has special rules: food and housing may be valued at 50% of pay, daily rest is 12 hours including eight hours at night, the trial period is 15 days, monthly payment may be used, and INSS registration applies. Land transport, mining and free-trade-zone work also have sector-specific rules, while the Labor Code remains the minimum standard for transport work. Employment can end through expiry of a fixed term, death or permanent incapacity, imprisonment or a judgment, permanent business closure, retirement or force majeure. On termination, the employer pays outstanding wages and proportional leave and thirteenth-month amounts. A worker ending an indefinite contract normally gives 15 days’ written notice; a field worker may give oral notice before two witnesses. When an employer dismisses an indefinite-contract worker without cause, seniority compensation is one monthly wage for each year during years one to three and 20 days of wages for each year from year four, with a minimum of one and a maximum of five monthly wages and proportional treatment for fractions of a year. Resignation or mutual agreement does not erase accrued seniority rights. A just-cause dismissal under Article 48 requires a prior hearing and authorization by the relevant departmental labor inspectorate, with an appeal to the General Inspectorate. A discriminatory, retaliatory or anti-union dismissal can lead to reinstatement and back pay. A worker in a position of trust may receive two to six months of wages instead of reinstatement when the employment lasted at least one year. Collective suspension generally requires prior MITRAB approval; after approval, the employer pays six days of wages. Workers may form a union without prior authorization, with legal personality obtained through the MITRAB register. An employee union requires at least 20 members, while an employer union requires at least five. Unions may be organized by occupation, company, several companies or municipality, department, region or country. A national union requires representation from at least nine departments. Membership is voluntary. Unions may represent workers, file complaints, negotiate collective agreements and call a strike. Union protection, called fuero, can protect up to 20 workers after an organization is announced for up to 90 days; registered union leaders can receive protection for up to nine leaders, with up to four additional members of a sectional body or committee. A collective agreement is written, filed with MITRAB, lasts no more than two years and covers the relevant category, including non-members. A more favorable individual clause prevails. An employer has a duty to negotiate, and refusal can be addressed through the Directorate of Collective Bargaining and Conciliation. MITRAB and its inspectorates handle inspections, approvals, administrative claims and collective bargaining matters. Labor courts of first instance hear judicial claims, with civil courts serving as a fallback where applicable, followed by appellate labor tribunals. INSS handles social-security matters. Proceedings are public, oral, concentrated and generally free, with conciliation and action by the court where permitted. The usual limitation period for a labor claim is one year, while workplace accidents and occupational diseases have two years, contract invalidity six months, and disciplinary or reinstatement claims one month. An application to an authority or a court action interrupts the limitation period. Administrative conciliation is compulsory for low-value claims and optional for other claims. If MITRAB does not conduct the conciliation within 10 days, the administrative stage is treated as exhausted. Filing or participating in conciliation interrupts limitation. A MITRAB settlement is an enforceable title. A correctly filed court claim should be admitted within five days, with a hearing scheduled no later than 15 days later. If an administrative authority has not issued a decision after 30 working days, the administrative stage is treated as exhausted. Statutory labor proceedings and administrative procedures are free, while the cost of private legal advice is not fixed by the research basis. A strike requires a peaceful majority decision and may pursue labor rights, a collective agreement or economic and social interests. MITRAB conciliation must first be exhausted. The General Inspectorate can declare a strike unlawful and set a return-to-work period of at least 48 hours. An employer may not use replacement workers during a lawful strike. Public or essential-interest services may not endanger life or safety through a strike.