IMPACT – MEDIUM
What is the change? Peru has introduced a new rule for appointed worker visas for employees of a foreign company completing assignments or specific tasks in Peru for up to 90 days (renewable for up to one year) and remaining on a foreign payroll.
In a separate change affecting work visas for employees of a Peruvian company, the authentication rule for contract signatures has been relaxed when the contract is signed by a legal representative of the company. This is applicable for resident worker visas.
What does the change mean? Foreign companies sending employees to Peru on appointed worker visas must now ensure that the proposed period of the employee’s services as stated in the appointment letter does not exceed the duration of the service agreement between the foreign company and local Peruvian host company.
Background: The appointment letter submitted by foreign companies states the period of time that the foreign assignee will render services in Peru, normally 360 days. Under the new rule, the time indicated in the appointment letter must not exceed the duration of the technical services agreement between the foreign sending company and the local host company. Previously, companies could submit an appointment letter stating a period of time that the assignee would perform services that was longer than the validity of the technical services agreement.
In another change announced by the Interior Ministry, foreign employees applying for visas to work for a Peruvian company will have relaxed authentication procedures when their contract is signed by someone other than the general manager. Previously in such cases, a validity of powers issued by the Public Registry Bureau needed to be submitted along with the file to demonstrate that the powers were still in force. Under the change, the company may instead submit an affidavit signed by the representative and indicating that the representative is authorized to sign contracts on behalf of the company.
BAL Analysis: To avoid delays in processing, foreign companies assigning personnel on temporary assignments to Peru on appointed worker visas should make sure the appointment letter reflects a period of time that does not exceed its service agreement with the local host company.
This alert has been provided by the BAL Global Practice group and our network provider located in Peru. For additional information, please contact your BAL attorney.
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