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View All NewsPeru – Labour regime launched to promote youth employment
A Special Youth Labour Regime was launched in Peru earlier this week, aimed at men and women between the ages of 18 and 24. The purpose of the regime is to make it easier for approximately 260,000 young people to enter the formal labour market.
Under the scheme, workers will receive a minimum wage, eight-hour working days or a 48-hour working week, overtime pay, weekly resting periods, holidays, and be protected against unfair dismissals.
Companies participating in the project are required to respect young people’s fundamental and constitutional rights, comply with social security, pensions and risk insurances’ contributions. They must also provide training, for which they will be able to claim tax credits.
Young workers taking part in the scheme will be registered with the Ventanilla Unica de Promoción del Empleo (VUPE) recruitment agency. Three months prior to the end of their contract, the agency will advise them about other job opportunities.
Peruvian President Ollanta Humala said that the new labour regime will help create more employment for young people. He rejected suggestions that the scheme is a simply means of stripping workers’ rights and pointing out that the labour regime is voluntary.