- The declared type must match the type written in the PDF and the reality of the relationship
- Indefinite is the default modality if you do not specify another (Art. 25)
- Fixed-term requires a concrete termination date in the contract
- Project-based requires a concrete description of the work to be performed
- Apprenticeship requires a documented training plan (Art. 173)
Summary: Guatemala’s RECIT system (MINTRAB) registers eight types of labor contracts recognized by the Labor Code (Decreto 14-41): indefinite, fixed-term, project-based, apprenticeship, part-time, domestic, agricultural and foreign worker. Other contractual relationships (professional services, commercial commission, internships) do NOT register because they are not employment relationships. Choosing the wrong type exposes the employer to reclassification, fines and miscalculated severance payments. This guide helps you identify the correct type for any hiring scenario.
Why choosing the right type matters
The RECIT form starts by asking for the contract type. That choice is not trivial: it defines duration, termination causes, severance calculation and evidentiary regime in case of a lawsuit. The same worker may fall under any of the eight labor regimes, but only one matches the reality of the relationship.
The golden rule of Guatemalan labor law is the principle of primacy of reality: what matters is not what the contract is called, but how it works in practice. If you sign a fixed-term contract with a worker who has been performing the same tasks for three years under conditions of permanent subordination, a labor judge will reclassify it as indefinite regardless of what the paper says.
That is why this exhaustive guide: not so you choose the type that suits you most as an employer, but so you choose the one the law obligates you to use according to the real nature of the labor relationship.
Labor contract types that DO register in RECIT
1. Indefinite-term individual employment contract (Art. 25)
Definition: Contract without a termination date. It is the default modality of the Labor Code: if the contract does not specify the type, it is presumed indefinite by operation of law.
When to use it: Almost always. Any permanent position, recurring, part of the normal operation of the business. Salesperson, secretary, in-house accountant, plant operator, manager, custodian. If the position will exist as long as the company exists, it is indefinite.
Mandatory clauses: Those of Article 20 of the Labor Code: identification of the parties, place of work, type of work to be performed, schedule (day, night or mixed), salary and payment method, start date and signatures.
RECIT-specific fields: In the form you select “indefinite” in the type dropdown. The system does not ask for a termination date. It asks for start date, salary and schedule.
Common pitfalls:
- Trying to disguise it as fixed-term or “fees” to avoid paying benefits — the judge reclassifies and multiplies the cost of dismissal
- Forgetting the probation period (maximum two months, Article 81): if not established in writing, it does not apply
2. Fixed-term contract (Art. 25-27)
Definition: Contract with an exact termination date written in the document. The relationship ends automatically on that date without an obligation to pay severance.
When to use it: Only when the nature of the work justifies it: replacing a person on maternity or IGSS leave, attending a specific peak season (Christmas retail campaign, agricultural sugarcane harvest), covering a specific project with a defined date.
Mandatory clauses: All those of Article 20 plus the exact termination date and the justified cause for the term (for example: “replacement of Ms. Juana Perez during her maternity leave from June 1 to November 30, 2026”).
RECIT-specific fields: You select “fixed-term” and the system requires a termination date. Without that date, it does not advance.
Legal limits:
- If the term expires and the worker continues working, it automatically converts to indefinite (Art. 26)
- After two consecutive renewals, labor jurisprudence presumes it indefinite
- If the employer terminates before the agreed date without just cause, they must pay missing salaries until expiration plus benefits
Common pitfalls:
- Renewing it indefinitely to avoid benefits — the judge reclassifies it
- Omitting the termination date in the PDF and declaring it only in RECIT — the contract becomes indefinite by default
3. Project-based contract (Art. 25)
Definition: Contract that ends when the specific work or service described is completed. The duration is not by time but by result.
When to use it: Construction of a specific home, installation of a specific system, execution of an audit plan with defined deliverables, assembly of a fair or event. The work must be identifiable and have a clear end.
Mandatory clauses: Concrete and detailed description of the work. “Various construction works” is not valid: it must say “construction of the perimeter wall of the property located at 5a calle 12-34 zona 10, of 50 linear meters and 2.5 meters high, according to attached plan”. The RECIT certificate depends on the description being verifiable.
RECIT-specific fields: You select “project-based” and the system asks for a description of the work. It does not ask for a termination date because the date is determined by the delivery of the work.
Common pitfalls:
- Vague description (“masonry work”) — the contract becomes indefinite due to indeterminacy
- Using it for continuous personnel who rotate between projects — the reality is indefinite if there is continuity between projects of the same employer
4. Apprenticeship contract (Art. 170-179)
Definition: Special contract where a person learns a trade under the direction of an employer who is obligated to teach them. The main consideration is the training, not just the salary.
When to use it: Formal apprenticeship programs for technical trades: bakery, mechanics, carpentry, electricity, welding, tailoring. It also applies to paid internships with a documented training plan.
Mandatory clauses:
- Detailed training plan (Article 173): what is taught, in how much time, who trains
- Applicable salary: during the first six months it may be below the minimum for the trade; after that it must equal the minimum
- Final certification of the trade learned
- Maximum duration (doctrine holds a reasonable maximum of one to two years according to the trade)
RECIT-specific fields: You select “apprenticeship” and the system asks to attach the training plan as an annex to the contract PDF. Without a plan, the contract is reclassified as indefinite.
Common pitfalls:
- Using it as a cheap contract for ordinary positions — without a real training plan, it is illegal
- Not certifying at the end — the apprentice can sue for the certificate and the payment of deferred benefits
5. Part-time contract
Definition: Individual employment contract with reduced hours compared to the ordinary working day (less than 44 hours per week in day shift, 36 night, or 42 mixed).
When to use it: Half-time personnel, weekends, reduced hours. Weekend waitress, external accountant who comes two mornings a week to the company but is on payroll, hourly teacher with a fixed schedule.
Mandatory clauses: Those of Article 20 plus the partial schedule expressed in hours and days. The salary must be at least proportional to the minimum based on hours worked.
RECIT-specific fields: You select “indefinite” or “fixed-term” as appropriate (RECIT does not have a separate category for part-time — it is a variant of the above) and specify the reduced schedule in the corresponding field.
Common pitfalls:
- Paying less than the proportional minimum — a half-time worker must earn at least half the applicable minimum wage
- Not registering benefits (Aguinaldo, Bono 14, vacation) — all apply proportionally
6. Domestic / household worker contract (Art. 162-166)
Definition: Individual employment contract under special regime for persons providing domestic services in households: cleaning, cooking, care of children or elderly, household gardening.
When to use it: Every person hired for household services permanently, whether they live in the house (live-in) or not (live-out). ILO Convention 189 and the 2017 reform to the Labor Code equalized their rights to those of common workers.
Mandatory clauses:
- Specific tasks (no “whatever comes up”: cleaning, cooking, child care, laundry)
- Schedule and weekly rest of one full day (Art. 164)
- If living in the house, lodging and food conditions as additional benefits
- Salary in cash (no lodging/food is deducted from the minimum)
RECIT-specific fields: You select “indefinite” (most domestic contracts are indefinite) and in position description you put “household worker” or “domestic worker”. Some RECIT forms have a specific domestic regime checkbox — activate it if it appears.
Common pitfalls:
- Not registering because “it has always been done this way” — historically the sector with the highest informality; today it is mandatory
- Enrolling in IGSS but not RECIT (these are two separate obligations: see IGSS Employer Registration)
7. Agricultural / field worker contract (Art. 138-145)
Definition: Individual employment contract under a special regime for field workers: agricultural laborers, sugarcane or coffee cutters, day laborers, cattle herders.
When to use it: Every hiring on a farm or agricultural operation. The agricultural minimum wage (lower than non-agricultural) and special rules on field work hours, housing and food as part of the benefit apply.
Mandatory clauses:
- Type of agricultural work (coffee picking, cane cutting, milking, vegetable harvest)
- If by task, description of the task and how to measure it
- Housing and food as a benefit additional to salary, not as a deduction
- If seasonal (zafra), it applies as fixed-term with a clear date
RECIT-specific fields: You select “indefinite” (permanent day laborers), “fixed-term” (season) or “project-based” (cutting a specific lot) as appropriate. The description must make clear that it is agricultural work.
Common pitfalls:
- Paying non-agricultural minimum wage for fear of fines — if it is genuinely agricultural, the agricultural rate applies without need to inflate
- Not registering temporary workers — temporality does not exempt from registration, it just changes the modality to fixed-term
8. Foreign worker contract
Definition: Individual employment contract between a Guatemalan employer and a foreign worker. The labor contract registers in RECIT; the foreigner’s right to work additionally requires a separate work permit.
When to use it: Every hiring of foreigners, whether multinational expatriates, independent professionals moving to payroll, or technicians hired by a local company.
Mandatory clauses: Those of Article 20 plus reference to the work permit number in force. The contract cannot be registered without an active work permit.
RECIT-specific fields: The contract type (indefinite, fixed-term or project-based) is selected according to actual nature. Additionally, the system asks for passport/foreign identification number of the worker and MINTRAB Migration work permit number.
Common pitfalls:
- Wanting to register the contract before having the work permit — RECIT rejects it
- Thinking that the work permit replaces RECIT — they are distinct obligations and both must be complied with
- Not updating RECIT when the work permit is renewed — an addendum is enough
Contracts that do NOT register in RECIT
1. Professional services contract (Civil Code Art. 2027-2036)
What it is: Civil contract where an independent professional provides services without subordination. The professional issues an invoice for professional fees (small taxpayer regime or ISR on professional income), sets their schedule, assumes their expenses, has no imposed schedule or permanent supervision.
Why it does NOT register: Because it is not an employment contract. RECIT registers only labor relationships under the Labor Code (Decreto 14-41). The professional services contract is governed by the Civil Code.
Legitimate cases: External lawyer of the company who invoices each month for advisory, public accountant who prepares financial statements and signs once a year, marketing consultant with defined projects, architect who draws specific plans.
Risk of misuse: If SUNTrab, MINTRAB or a judge detect that the contract conceals a real labor relationship (fixed schedule, supervision, exclusivity, employer’s tools, daily supervision), the principle of primacy of reality applies and it is reclassified as an employment contract with all retroactive consequences: benefits, severance, RECIT fines, IGSS fines, tax adjustments.
“False self-employed” red flags: clocks in, has assigned office, receives daily orders, works exclusively for a single company, uses corporate email, has fixed supervisor, vacations authorized by the employer.
2. Commercial commission contract (Commerce Code)
What it is: Commercial contract where a commercial agent (commission agent, representative) markets another’s products in exchange for a commission per sale. The agent is independent, assumes their own commercial risks, has no mandatory exclusivity.
Why it does NOT register: It is a commercial contract governed by the Commerce Code, not labor. The commission agent issues an invoice for their commissions; the principal does not pay them a salary.
Legitimate cases: Independent insurance agent, sales representative of a product line without exclusivity, real estate intermediary who charges commission upon closing.
Risk of misuse: Same as in professional services, if the “commission agent” has a fixed schedule, immediate supervisor, guaranteed base salary and mandatory exclusivity, they are a labor worker and reclassification applies.
3. Informal work without written contract (Art. 22)
What it is: Verbal labor relationship without a signed document. Article 22 recognizes that verbal contracts exist in three cases: agricultural work, casual work no longer than 60 days, and domestic service (the latter no longer applies since 2017).
Why it does NOT register: Without a signed document by both parties, RECIT has no PDF to upload. The system requires the document as the basis of the registration.
Why it is high exposure: The labor relationship exists (with all the obligations of the Labor Code) but without documentary evidence. In a lawsuit, the judge presumes true what the worker says about salary, schedule and seniority. It is the maximum evidentiary risk scenario for the employer.
Recommendation: Even in cases where the law allows verbal, draft and sign a written contract. The cost of paper is zero and the evidentiary benefit is enormous.
4. Unpaid university internships
What they are: Periods of academic practice that a student performs as a graduation requirement in a company, without direct economic consideration. They are governed by the university regulations and agreement with the company, not by the Labor Code.
Why they do NOT register: There is no labor relationship because there is no salary or subordination in the strict sense. The student reports to their academic tutor, not to a labor boss.
Red flags: If the “internship” lasts beyond the academic period, if the student performs regular operational tasks and not learning tasks, if they receive payment even under the concept of “travel expenses”, it is reclassified as an apprenticeship or indefinite contract and must be registered in RECIT.
Comparison table of the 8 types that register in RECIT
| Contract type | When to use | Maximum duration | Renewable? | Labor Code article | Special rule |
|---|---|---|---|---|---|
| Indefinite | Permanent position | No limit | N/A | Art. 25 | Default modality |
| Fixed-term | Replacement, season, project | Reasonable per case (6 months typical) | Yes, but >2 renewals presumes indefinite | Art. 25-27 | Requires concrete termination date |
| Project-based | Construction, installation, specific project | Until project delivery | N/A | Art. 25 | Requires verifiable description |
| Apprenticeship | Technical trade training | 1-2 years | No (ends with certification) | Art. 170-179 | Requires training plan |
| Part-time | Permanent reduced hours | No limit | N/A | Art. 20, 116 | Salary proportional to minimum |
| Domestic | Household service | No limit | N/A | Art. 162-166 | ILO Convention 189, full weekly rest |
| Agricultural | Field or farm work | No limit (depends on modality) | Depends on subtype | Art. 138-145 | Agricultural minimum wage, housing as benefit |
| Foreign worker | Any foreigner hired | Linked to work permit | Yes, along with permit renewal | Art. 18 + Migration | Requires prior work permit |
How to choose the right type in the RECIT form
A quick guide to get it right on the first try:
- Will the position exist as long as the company exists? Yes → indefinite. No → continue.
- Is there an exact known termination date today? Yes → fixed-term. No → continue.
- Does the work end when something specific is completed? Yes → project-based. No → continue.
- Is the worker an apprentice with a documented training plan? Yes → apprenticeship. No → review case by case.
- Is it a foreigner with a valid work permit? Yes → register the real subtype (indefinite, fixed-term or project-based) and declare the nationality.
- Is it a household worker or field worker? Yes → activate the corresponding special regime.
- Is the workweek less than 44/36/42 hours? Yes → declare part-time hours within the corresponding type.
If you doubt between two types, it always pays to choose indefinite. It is the most protective regime for the worker and the least risky for the employer in case of judicial reclassification.
What happens if I choose the wrong type
Three main scenarios:
Scenario 1: Declared fixed-term, actually indefinite. Upon dismissal, the employer believes that waiting for expiration is enough. The worker sues. The judge applies primacy of reality: reclassifies to indefinite, orders payment of severance for time served, plus back wages, plus a simulation fine. Typical cost: 3-5x what it would have cost to declare correctly from the start.
Scenario 2: Declared professional services, actually a labor relationship. The “consultant” sues. Retroactive reclassification as an indefinite contract. The employer pays: severance, retroactive benefits (Aguinaldo, Bono 14, vacation for all years), unpaid IGSS contributions with a fine, ISR adjustment, and RECIT fine for not registering. It is the worst scenario and the most frequent.
Scenario 3: Declared indefinite, actually project-based. The employer believes they must dismiss with severance at the end of the project. The situation is reversible: register an addendum clarifying that it is project-based from the start and keep documentary evidence of the nature of the project. If the project really had a clear end from the beginning, the judge may accept the reclassification.
The practical lesson: it is much cheaper to declare correctly from day one than to correct later. If you have doubts, consult with a labor lawyer before uploading the contract to RECIT.
Related procedures
- RECIT MINTRAB — Electronic Registry of Employment Contracts — parent page with the full procedure
- Guatemala Employment Contract Template (Word download) — templates by type
- Work Permit for Foreigners — prior step if hiring foreigners
- IGSS Employer Registration — mandatory before hiring
- Severance Calculation — for settlements
- Electronic Labor Solvency Certificate MINTRAB — requires RECIT up to date
- Electronic Salary Book MINTRAB — mandatory if you have 10+ workers
- Pay Stub — format and template — proof of salary
- Employment Certificate — at end of relationship
- MINTRAB Hub Guatemala — all Labor and Social Security procedures