“Peru: Controversial Labour Law Scrapped” - 2 February 2015

In the face of a strong and united opposition movement, the Peruvian government has revoked a controversial new youth labour law…which would have cut salaries, holidays and severance payments for workers under 25 amongst other measures, was repealed in Congress…The so-called “Pulpín Law” was passed on 11 December 2014…The government said the labour law changes would help “reactivate the economy” and fight informalisation, as 85 per cent of all workers aged between 18-24 are found in the informal economy…But critics…likened the measures to “semi-slavery” as they would encourage companies to hire young workers for less money…fewer holiday…[and]reduced bonuses and no severance pay on termination of a contract.  Some 260,000 young Peruvian workers would have been affected by the law, according to statistics.