Employer in Paraguay

Paraguay has no single authority responsible for every employer matter. The Ministerio de Trabajo, Empleo y Seguridad Social (MTESS), including the Viceministerio de Trabajo and its Dirección de Registro Obrero Patronal, Dirección de Trabajo and Dirección de Salud y Seguridad Ocupacional (DSSO), share responsibilities with the Instituto de Previsión Social (IPS). The IPS handles the Seguro Social, while MTESS oversees labour registration, records, inspections, mediation and collective labour matters. A company with employees generally registers as an employer with IPS and records its employees through the Registro Electrónico de Información (REI). It also registers with MTESS through the REOP. Available channels include the MTESS online portal, the Dirección de Registro Obrero Patronal, a DROP office or SUACE. The MTESS registration should generally be completed within 60 days after work begins. The company registers its head office and each branch separately. Changes to the address, business activity, legal representative or branches require updates, and the employer cancels the registration when its employment activity ends. The employer reports employee entries, departures and other employment events under Decreto 1989/2024, generally within 30 working days. The reports are treated as declaraciones juradas, meaning that the submitted information has legal effect as a sworn statement. Required information can include hiring and departure dates, leave, holidays, absences, disciplinary measures, notices, accidents, occupational diseases and wages. The digital Libro de Información Laboral has been required since 2025, and the employer confirms it annually according to the applicable calendar. Late maintenance of the digital books can lead to penalties of 10, 20 or 30 jornales, depending on the number of employees. The employer assigns the agreed work, pays the agreed remuneration on time, maintains employment and payroll records and registers employees with social security from the beginning of the employment relationship. It also handles licences, leave and holidays, protects physical, psychological and moral integrity and prohibits discrimination, violence and workplace harassment. Internal management and disciplinary measures must follow applicable rules and remain proportionate. Occupational health and safety is an employer responsibility. The employer assesses and prevents risks, provides information and training, supplies collective or individual protection and gives clear safety instructions. Hiring and periodic medical examinations are paid by the employer, and employees cannot be charged for occupational safety measures. Workplace accidents and occupational diseases must be reported. The DSSO is the specialised public contact point for occupational health and safety matters. Employers and employees may form or join trade unions without prior authorisation, and joining or leaving a union is protected. A company with at least 20 employees has a duty to enter into a collective agreement; where a union exists, collective bargaining takes place with that union. The Dirección de Trabajo supports union organisation and collective bargaining and maintains the Registro Sindical. The MTESS is the administrative labour authority for individual and collective complaints. The Dirección de Trabajo supervises labour matters, while mediation and conciliation are voluntary, public and free. A strike generally requires 72 hours' advance notice to the authority and the employer and the formation of a bipartite commission. An employer cannot replace striking employees before a declaration that the strike is illegal. A lawful strike does not by itself justify a sanction or termination, while essential services require minimum provision. Changes of employer, legal representative, workplace or business activity require corresponding MTESS and IPS updates. When employment ends, the employer records the departure and completes the related documents and deadlines. Employment contracts and internal regulations may require approval or homologation. Organisational restructuring has no single special procedure identified for this scope, but registration, social-security, occupational-safety and employee-representation duties continue. IPS contributions are ongoing, and the employer bears the cost of required medical examinations and safety measures. General registration fees were not established in the available local research, but failures involving registers, reports or labour books can result in sanctions.