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[null,"Prepared By:","Contributors:"]
[null,"Alvarado Y Asociados","Yury Fernando Cerrato"]
[]
[]
[]
["Global Employment Law Guide"]
[]
["Report Generated: 11/19/2025"]
[]
["View your report results on next tab"]

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["Question","Nicaragua"]
["Lex Mundi Global Employment Law Guide"]
["What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?","In Nicaragua, all the workers are considered employees for the corresponding legal effects.\nAmong the employees, there is the category of the employees known as “trusted employees” who are those employees who generally possess charges of administration in the company or who can represent the employer in front of other employees or other institutions or persons. Trusted employees can receive a special indemnification if they are dismissed wrongfully.\n"]
["Are there different types of employment contracts (for example, fixed-term, indefinite)?","Yes. There are definite contracts and indefinite contracts. A Definite contract is a type of contract that provides a term of duration for the labor relationship and an indefinite contract is a contract that does not provide a term of duration for the same.\n"]
["What requirements need to be met in order for an employment contract to be valid?"," According to Article 20 of the Labor Code of Nicaragua , the labor contract must include the following information: \n \n Place and date of commencement of employment; \n Full name and domicile of the parties (employer and employee), or the employer´s legal representative in case the employer is a company. \n a description of the work and where it will be carried out; \n The employee’s working hours (specifying split and/or regular shifts). \n The contract must specify a definite or indefinite duration of employment; \n Wages due to the employee during each pay period and how wages are calculated; and the place where payment will take place. \n Signature of the parties. \n "]
["Are part-time employees afforded the same rights as full-time employees?","Yes, they are, but in a proportional manner to the time worked.\n"]
["Can employment contracts be assigned?","Yes, provided that the employee accepts it.\n"]
["What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?","If the labor conditions do not change and the company that employs the employees remains the same, then, it does not affect the labor relationships, but as a consequence of the transfer the labor conditions change, then, it will be necessary to revise the particular case to determine whether it is required to obtain the employees' consent for such changes. Employees hired with indefinite contracts always have the right to terminate them with a 15-day previous notice.\n"]
["Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.","No, it is not specifically regulated. If the employer remains the same, no matter if the company has a change of administration, the labor relationship continues to be valid under the same terms.\n"]
["In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?","No change to the labor contract can be made unilaterally. Any change requires the employee's consent.\n"]
["Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?","Yes, the \nLabor Code of Nicaragua allows terminating an indefinite contract without a justified cause provided that the termination does not infringe the law or is made in the character of reprisal against the employee or violation of any of his rights.\nBased on \nArticle 45 of the \nLabor Code of Nicaragua, the employer can terminate an indefinite labor contract at any time but must pay an indemnity for antiquity calculated based on the length of the relationship.\n"]
["Are there remedies for dismissal without cause or wrongful termination?","Dismissal without cause is allowed; however, \nArticle 46 of the \nLabor Code of Nicaragua stipulates that when the dismissal occurs in violation of the prohibitions provided by such Code or other labor provisions, or in the character of reprisal against the employee as a consequence of performing labor right, the employee is entitled to claim his re-installment to his job position before the labor judge. If the judge confirms that it was a wrongful termination, the employee will be entitled to be reinstalled to his job position or to receive a double payment of the indemnity for antiquity stipulated in \nArticle 45 of the \nLabor Code, calculated based on the length of the relationship, provided that such termination didn´t occur in violation of the fundamental rights of the employees established in the \nArticle 105 of \nLaw 815. In the case of the trusted employee being terminated wrongfully, he is not re-installed, but the judge will instruct the payment of an indemnification from 2 to 6 months of salary.\n"]
["Are there protections for whistleblowers?","It is not specifically regulated in Nicaragua.\n"]
["Do employees have a right to privacy? If so, what are the remedies for a breach?"," Yes. Any person in Nicaragua has a right to privacy. According to Article 26 of the Political Constitution of Nicaragua, everyone has the right: \n \n To his private life and that of his family. \n Respecting his honor and reputation. \n To know all information that has been recorded about him/her in private and public entities, as well as the right to know why and for what purpose that information is had. \n To the inviolability of his home, his correspondence and his communications of all kinds. \n \n The person has the right to file a resource of habeas data when someone has infringed his privacy and therefore, to demand opposition, modification, deletion, blocking, including rectification of personal data. \n Moreover, the Data Protection Law establishes regulations to protect the personal data of any person and the right to request the deletion or modification and not transfer of any personal data. \n   "]
["Are employees afforded any anti-discrimination protection?","Yes, \nArticle 82 of the \nPolitical Constitution of Nicaragua stipulates that workers have the right to working conditions that ensure in particular: 1. Equal salary for equal work under identical conditions, appropriate to their social responsibility, without discrimination by political, religious, social, sex or any other reasons, that assures them well-being compatible with human dignity. This same provision is also contained in the \nLabor Code of Nicaragua."]
["Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?","Yes, there are statutory rights to vacation, medical leave and parental leave. No changes have been made to leave benefits in the past 12 months. We are not aware of any proposed legislation that will impact leave benefits.\n"]
["Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?","No, restrictive covenants are not specifically recognized. We consider that these types of covenants are not allowed by the Nicaraguan law since the \nPolitical Constitution stipulates in its\n Article 86 that every Nicaraguan has the right to freely choose and exercise his profession or trade and to choose a place of work, with no more requirements than the academic degree and that it fulfills a social function.\n"]
["Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?","No, he cannot be terminated for this cause.\n"]
["Does your jurisdiction require contributions to a pension or retirement scheme?","Yes, employees must contribute to the social security system that includes a pension or retirement scheme with 7% of their gross monthly salary and employers must contribute 21.5% of the gross payroll of employees if it has less than 50 employees hired, and 22.5% of the gross payroll of employees if it has 50 or more employees hired.\n"]
["Are certain benefits mandated by your jurisdiction?","All the benefits established in the Nicaraguan laws are provided as mandatory.\n"]
["Is it permitted to have a mandatory retirement age in your jurisdiction?","Yes. 60 years old is the age for retirement, except for teachers and special workers who can retire at 55 years old, provided they comply with certain conditions.\n"]
["Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?","Yes, it is possible.\n"]
["Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an employer terminate the employee’s employment?","In Nicaragua, no specific regulation about this has been issued by the government, but our consideration would be that an employer cannot make the COVID-19 vaccine mandatory for its employees. The government has offered the COVID-19 vaccine to the Nicaraguan citizen to be received voluntarily, so that, we believe that an employer cannot impose it as mandatory for its employees. In this sense, if the employer terminates an employee due to the fact that the employee did not want to receive the vaccine, it would be considered an illegal termination.\n"]
["Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?","Yes, he can. However, it is important to revise if it does not infringe on any particular agreement executed by the parties. In Nicaragua, any change to the labor contract must be agreed upon by both parties--when the employee was sent to work from home, an addendum to his labor contract had to be executed and such addendum should have established the possibility for the employer to require the employee to return to work in the office to do not contain any risks for the employer in requiring this later. In this sense, if it was duly stipulated in the contract or the addendum to the contract, and the employee refuses to return to the office, the employer can terminate his employment contract.\n"]