One important labor law principle, non-discrimination in the workplace, has historically played a larger role in the US than in South America. Employment discrimination is an important legal theory in the United States, as it creates an exception to the general U.S. rule of employment. Under this rule, either party is free to terminate the labor relationship with no liability to the other. This is something that South America does not share.
South American countries share a more European approach to labor relationships, and terminating these relationships, in the absence of “cause,” requires a payment of statutory severance. This more paternalistic view is rooted in the notion of disparate bargaining strength and the need to protect employees who have less leverage. Historically the concept of non-discrimination has not played as important a role in South American …show more content…
Nevertheless, the Peruvian Constitution recognizes an employee’s right to protection against discrimination as a fundamental right. Peruvian labor law identifies protected categories of workers from non-discrimination on the basis on gender including a ban on sexual harassment, nationality, race, age, religion, and disabilities. As a result of the bilateral Free Trade Agreements (“FTAs”) it has recently entered into with the U.S. and Canada, Peru has substantially increased the Labor Ministry budget for labor inspection and enforcement, increasing the number of labor inspectors from 100 to 400.
The most important type of labor claim in Peru is the claim for equal pay. Equal pay complaints often arise in the context of integrating companies that have recently completed a merger, whereby employees of one of the former companies earn lower salaries for the same or similar type of job and seek to receive the same treatment as the employees of the other