Author: dev_

The Executive Branch enacted last July 8, 2019 this law that regulates the labor contracts of workers who work between 16 and 32 hours per week.

Among other points, it establishes as a mandatory condition that this type of contract be formalized in writing and excludes the possibility of establishing the exclusivity of the employment relationship with a single employer.

With regard to social security, it provides that workers with part-time employment contracts enjoy the same rights as full-time workers, such as: short- and long-term benefits offered by the mandatory social insurance administered by the Social Security Institute, breastfeeding, maternity and paternity leave, and the family allowance benefit.

With respect to social security contributions, the regulation establishes that they will be the same as those established for the general mandatory social security system (16.5% for the employer and 9% for the employee). On the other hand, it provides that in the event that the amount of the employee's contribution is not equal to the amount corresponding to 9% of the minimum salary in force, the employer must make up the resulting difference in addition to paying the employer's contribution.

As a highlight, the law provides that the hours of leave for breastfeeding leave are calculated in proportion to the hours worked.

The following workers are expressly excluded from the provisions of this law:

- Public and private teachers.

- Target Staff

- Public transportation workers.

The regulation of this law by the Ministry of Labor, Employment and Social Security (MTESS) is expected in the next few days.

Recently, after 20 years of negotiations, Mercosur was able to sign a Strategic Association Agreement with the European Union.

Through this agreement, Paraguay, as a member of Mercosur, will have direct access to the market of 28 EU member countries, in addition to enjoying economic advantages that include, among others, the liberalization of tariffs on 100% of industrial goods over a 10-year transition period, the reduction of 93% of export tariffs on agricultural products, the commitment not to increase tariffs above a prime rate for all products, including those that are not subject to preferential treatment and, in particular, the opening of the maritime services market to Mercosur.

The agreement contemplates, among other issues:

(a) The interest in promoting electronic commerce through the elimination of barriers, offering more legal certainty to companies offering e-commerce services, providing rules that prohibit the imposition of customs duties on electronic transmissions and rules that guarantee the validity and legal effect of transactions.

(b) The reciprocal opening of the public bidding market in both blocks in the areas of goods and services, applying principles of non-discrimination, transparency and equity, in addition to other rules detailed in the World Trade Organization (WTO) Agreement on Government Procurement.

(c) The demarcation of clear and transparent competition rules, through the creation of a strict set of rules to be applied in the absence of WTO regulations that stipulates, among other things, that competition authorities must treat companies on both sides equally in terms of procedural fairness and rights of defense.

(d) Intellectual rights are also an important part of the agreement. Regarding industrial designs, the protection of such designs is established for at least 15 years. As regards products with geographical indications, these will be protected in Mercosur at a level comparable to that of the European Union, prohibiting the use by non-authentic products of the geographical indication expressions 'type', 'class', 'style' or 'imitation'.

(e) With regard to the conflict resolution mechanism, mediation and arbitration, among others, are established as alternatives to settle disputes.

If approved by the member countries of both blocs, the agreement will undoubtedly bring challenges and opportunities for Paraguay and the region.

On April 23 and May 27, partner Mirtha Dos Santos, head of the firm's Litigation Area, and associate Eusebio López, an expert in Arbitration, gave a lecture entitled “Best Practices to Prevent Litigation / Arbitration or Litigation”. The talk provided the attendees with practical suggestions for the proper management of legal risks and gave them more information about the methods available to resolve a dispute when it is no longer possible to settle it amicably.

These working breakfasts were held at the firm's offices and were attended by groups of people interested in the subject in question.

Vouga Abogados plans to hold lectures on this and other topics in the coming months, so we recommend those interested to keep an eye on our publications on social networks to learn more about it.

For more information about these lectures, please contact Mirtha Dos Santos mdsantos@vouga.com.py or Eusebio López elopez@vouga.com.py

In June, the National Directorate of Public Procurement (DNCP) decided to update and incorporate certain changes to the Standard Bidding Terms and Conditions. The updates are intended to provide more facilities in order to optimize public procurement and will be effective as from July 1.

The changes were as follows:

• Consolidation of several forms to be submitted for the bid (to simplify the preparation of the bids).
• Electronic generation of the consolidated bid form with the specific bid data (to avoid errors in filling out the form and reduce the risk of disqualification).
• Inclusion of the supplier's obligation to check their e-mail periodically (to speed up procedures).
• Indication of key contract performance data in the contract documents (for use in the electronic system and for compliance monitoring).

Based on these changes, the steps to be followed by bidders to participate in the bids are as follows:

1. Enter the call from the SICP (Public Procurement Information Systems) and indicate the respective ID. 
2. Read the terms and conditions and then download the new bid form and price list. Here you will have to fill in only the required data. 
3. Finish filling out the data, print and sign as a sworn statement, in addition to accompanying the documents that prove compliance with the requirements to participate.

The amended bidding documents and invitation letters are for the procurement of goods and services, comprehensive cleaning services, construction contracts, insurance, security and surveillance, and airline tickets.

For more information about participation in tenders and the corresponding requirements, please do not hesitate to contact Walter David Vera (wvera@vouga.com.py) or Andrés Vera avera@vouga.com.py.

Source: National Directorate of Public Contracting

On May 30, an initiative presented by the Science and Technology Committee of the Chamber of Deputies was analyzed. It is the bill “On streamlining public procedures” (Zero Paper), which aims to streamline the bureaucratic processes of procedures in public institutions, gradually reducing the use of paper until it is completely eliminated.

If successful, this law would benefit not only the environment but also citizens. Public procedures would be faster, more transparent and less costly, and could be carried out without the need to travel to the institution in question. This would benefit, above all, those people who until now have had to travel to the capital from the interior of the country just to carry out procedures.

In addition, since the data would be stored out of the reach of manipulation from the very beginning of the process, there would be more transparency in the whole process. In addition, all internal procedures of state entities would be carried out in digital format, including:

- Permits

- Proceedings

- Memorandums

- Notes

- Schedules

- Files

- Circulars

After the hearings, the intention of its promoters is that this project will pass through the different committees of the Lower House, accompanied by MITIC, until it is approved.

Source: Paraguayan Information Agency

The CLA Arbitration Week, sponsored by Vouga Abogados and supported by the participation of its associates in the conferences and activities, was held in Asunción from May 27 to 31. The main event, the Latin American Arbitration Conference, has been held annually for 11 years and was held this year in Paraguay between May 30 and 31, with the presence of the world's leading arbitration experts.

This edition was attended by icons of international commercial arbitration such as João Bosco Lee (Curitiba), Roque Caivano (Buenos Aires) and Paul Arrighi (Montevideo) and European experts such as Yves Derains (Paris) and Gary Born (London). The topics addressed ranged from party arbitrators, the connection between international arbitration and private international law, the impact of technology on arbitration, among others.

The inaugural conference, entitled “The Past, Present and Future of International Arbitration” and presented by the famed Gary Born - widely recognized as the world's leading authority on international commercial arbitration and international litigation - was moderated by our associate Eusebio López.

Likewise, the first panel of the day, dedicated to young professionals who stand out in the area of arbitration -CLA under 40- and which presented a procedural negotiation simulation, was moderated by our associate Georg Birbaumer Vera.

If you would like to know more about our arbitration practice, please do not hesitate to contact Eusebio Lopez. elopez@vouga.com.py and Rodolfo G. Vouga rgvouga@vouga.com.py.

Vouga Abogados assisted Fideicomiso Fortune Asunción in the structuring of the financing for up to US$ 15 million, granted by Banco BASA S.A., under the autonomous patrimony of said trust, constituted for the execution and development of the construction project of the JADE PARK Building.

In order to ensure the payment of the financing obtained, a new Administration and Source of Payment Trust has been created, whereby Fideicomiso Fortune Asunción as trustor, represented by Banco Atlas S.A. as trustee, has proceeded to transfer certain collection rights arising from unit purchase and sale agreements entered into with buyers of the JADE PARK Building to the autonomous assets managed by the trustee Finlatina S.A. de Finanzas, with Banco BASA S.A. as beneficiary.

Should you require further information on the creation of funds and trusts for investment in the real estate sector, please do not hesitate to contact Cynthia Fatecha (cfatecha@vouga.com.py).

The Ministry of Labor, Employment and Social Security (MTESS) and Equifax (owner of Informconf) signed an agreement to work together and eliminate the barrier that credit and commercial information represents when it comes to accessing jobs. The objective is that the information of people with debts will no longer be transmitted to labor intermediaries.

In addition, the company will work on financial education and the MTESS agreed to provide information on employers who do not comply with labor rights. Thus, it is also intended to reinforce education on the advantages of formalizing employment and the correct use of credit history.

The goal of this agreement is to achieve a control and compliance system that benefits both employers and workers.

For more information about the correct fulfillment of labor obligations, do not hesitate to contact Perla Alderete. palderete@vouga.com.py and Walter David Vera wvera@vouga.com.py.

Source: Paraguayan Information Agency

On May 10, what the authorities called the “event of the half-century” took place: the groundbreaking ceremony for the construction of the second bridge over the Paraná River between Paraguay and Brazil. This work will increase the competitiveness of the maquiladora industries in the area, considering that 87 of the 179 maquiladora industries operate in Alto Paraná and 75% of their production is moved by land.

This sector employs 6,654 people and records an export above USD 200 million, with the potential to continue growing. In fact, exports for the month of April 2019 amount to USD 66,584,258, which is 10% more than the same period last year.

The day before, the II Meeting of Maquiladores in Alto Paraná was held, in which the advantages that the construction of the bridge will bring to the industry were discussed. Among them, it is estimated that when the bridge is inaugurated -in three years- it will considerably increase not only commerce but also the tourist and hotel offer, transforming the zone into an industrial area and improving the quality of life of the people.

The authorities added that, by October, the operational processes related to the maquila will be automated to provide better service, control and work for dispatchers. All of this is aimed at digitizing processes, saving time and money.

For further information about the maquila regime, please contact Rodolfo G. Vouga rgvouga@vouga.com.py and Andres Vera avera@vouga.com.py.

Source: Ministry of Industry and Commerce, Paraguayan Information Agency.

The Ministry of Environment and Sustainable Development (Mades) convened all sectors of society to proceed with the study and elaboration of an Environmental Code. In this sense, it expects to count on the collaboration of private and public institutions, representatives of the civil society, the legislative power, the academic and productive sectors, among others.

The objective is to involve all sectors in a participatory manner with the launching of the code elaboration process. The intention of the authorities is that everyone can make their contributions and have the opportunity to make suggestions and give their opinion on the environmental laws in force and their application.

The ultimate goal is to bring together in a single regulatory body all the provisions governing environmental management.

For further information or assistance on environmental issues, please contact Walter David Vera wvera@vouga.com.py and Marta Martinez mmartinez@vouga.com.py.   

Source: Paraguayan Information Agency