New Emergency Program Forces Employers To Supply Their Workforce, On Demand, To Benefit State-Owned Entities

Venezuela's Ministry of Labor has enacted the establishment of a forced labor program, which will require public and private sector employers to supply their workers as "temporary loans" to State-owned companies to boost the country's economic development in essential industries, such as agriculture.

In accordance with the program and under the presidential decree, known as the "State of Economic Emergency Decree No. 2,323"¹, employers must loan workers who either are physically fit or have the necessary professional skills to perform the activities that are on demand by the requesting State-owned company. The program is effective as of July 22, 2016, and can be applied for a 60-day period, which may be renewed indefinitely. This mandatory program will have significant implications for both the workforce and private sector employers.