Venezuelan firms compelled to sponsor social security plans

More than 10 years have passed since the government last enacted laws on social welfare addressing retirement benefits and healthcare. The new Organic Labor Law is aimed at making mends in these areas, according to documentation to which El Universal gained access.

This draft law highlights the State's role in fulfilling strategic policies to ensure fair distribution of wealth and improvement of the population's living standards through housing, utilities, healthcare, education, food and employment. Nevertheless, the corporate sector will be forced to bear the large burden of attending to workers' needs.

With regards to health, a "health board" is to be established at each worksite to carry out plans aimed at providing healthcare, including dental care, laboratory services, and medicines, to employees.

Employers with over one thousand workers will be required to have a health center accoutered with all the elements required for medical, surgical or pharmaceutical care.

In the case of the elderly or children with disabilities under the care of employees, agreements with specialized public or private institutions offering comprehensive care will be required.

In relation to retirement benefits, employees must be ensured continuity in any pension and welfare plans and 100% of their comprehensive salary when uninterrupted employment based on shifts, rotating schedules or night shifts, has lasted for over 20 years. This also applies to employees who have reached the age of 55 for women or 65 for men, as well as any employees with 25 years of service, regardless of their age or gender.

With respect to food benefits, employees will be entitled to 30 meal tickets, equivalent to half a tax unit, free of any conditions or restrictions.

Infinite education

The draft Law on the Social Process of Labor establishes that companies with over 20 employees must have their own childcare facilities or otherwise grant funding to childcare institutions. Companies with less than 20 employees will address this issue according to their financial capacity.

In the case of large companies with over one thousand employees, in-house facilities for maternal care and preschool, elementary and secondary education must be built. These companies will also have to assist in the maintenance of public schools located near their premises and provide them with teaching supplies.

Another aspect of the new Labor Law stipulates that agreements with public or private institutions specializing in health, education, therapy and recreation would have to be reached for comprehensive care of employees' children who may suffer from any disability.

In respect of housing policies, employees will have the right, after three years of employment, to be allocated a safe, comfortable home with all the basic utilities, based on their accrued social benefits.

yfernandez@eluniversal.com

Translated by Félix Rojas Alva