The recent amendments to Venezuela’s Organic Labor Law impact local and multinational employers in many aspects, especially with regard to the practice of outsourcing. The new Organic Law of Labor and Workers (known as the “LOTTT,” its Spanish acronym) became effective on May 7, 2012, and generally prohibits outsourcing, defined as “fraud or deceptive practices committed by employers, for the purpose of distorting, disregarding or impeding the implementation of labor laws.” The LOTTT charges the […]

The social security contributions regime for supplementary pension schemes has been radically overhauled over the past two years. As a result, the social security contributions payable in respect of supplementary pension schemes has increased dramatically. At the employer’s choice, these contributions are based either on the amount of the pension accrued or on the contributions made into the pension scheme on the employee’s behalf. These contributions are then allocated to an “old-age solidarity fund”.

Employers’ […]