Labor Law and its importance in entrepreneurship

By: Luz Fabiola Rincand

lrincand@romeropineda.com

Labor Law is one of the legal systems that has the greatest relationship with the phenomenon of entrepreneurship. This importance lies in the fact that human capital is one of the most valuable resources that companies have, since through it business objectives are achieved, and it is allowed to produce, grow and consolidate in the market.

Knowledge and compliance with labor standards by entrepreneurs is not only a legal requirement, it is also a means that guarantees sustainable development of their companies, since both business and economic stability directly depend on companies not being sanctioned by the authorities.

Failure to comply with labor standards can cause the end of businesses; For this reason, institutions must not only encourage business creation, but also join forces so that entrepreneurs can train in legal aspects to make accurate and informed decisions when they must hire workers.

Among the labor obligations established by the Law of El Salvador for employers is the registration of their company or establishment in the General Directorate of Labor Inspection of the Ministry of Labor and Social Welfare.

There is also the employer's obligation to enter into employment contracts with its employees and present a copy of these to the Ministry of Labor.

And among many others, highlighting those considered most important, the obligation to prepare an Internal Work Regulation and present it for approval by the General Directorate of Labor, this only if it permanently deals with 10 or more workers.

The training of entrepreneurs in labor regulations and standards allows them to ensure a harmonious environment and lasting relationships between their collaborators, all under an effective legal framework. We invite you to consult with us and grow your business in the best way.