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Short-term employment contracts put workers at risk in Peru

Issues Employment Relationship Freedom of Association & Collective Bargaining

On March 4, 2013, Fair Labor Association (FLA) sent a letter to Peruvian President Ollanta Humala Tasso raising concerns over legislation that currently permits the employment of workers through the use of repeated short-term employment contracts. Short-term employment contracts do not provide stability of employment, and often erode access to fundamental labor rights. FLA Participating Companies Nike, New Balance, PVH Corp., and 47 Brand have also urged the President to take action.

Peruvian legislation allows employers in the country’s garment export sector to hire workers on consecutive short-term contracts. These employment arrangements undermine workers’ ability to refuse dangerous work, to raise concerns about the working environment, and to freely associate and bargain collectively.

According to the Solidarity Center, Peruvian trade union federations and several international groups have expressed similar concerns.  The U.S. Department of Labor, U.S. Embassy in Peru, the Solidarity Center and others are following the situation closely as legislators in Peru consider repealing laws enabling short–term contracts. 

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