Countries › Paraguay › Guide › 7. Labor and employment › Unions, collective bargaining, internal work rules and strikes in Paraguay

Unions, collective bargaining, internal work rules and strikes in Paraguay

Last verified: 2026-10-28 · Status: Stable

Workers and employers may form unions without prior authorization: a company union needs 20 founders, a trade union 30 and an industry union 300, and registration becomes final if no objection is raised within 30 days. Every company with 20 or more workers must have a collective agreement on working conditions, which binds all staff once approved and registered by the labor ministry, and employers with more than 10 workers need approved internal rules to suspend workers. Strikes require 72 hours' notice to the authority and the employer, essential services must keep minimum supply, strikers cannot be replaced while the strike is legal, and strike days are unpaid.

USD figures use PYG 5,868.31 per US dollar, the Banco Central del Paraguay reference quotation in the planilla for Wednesday 28 October 2026. Conversions are for orientation only.

Key facts

Minimum founders for a company union	20 workersCódigo del Trabajo art. 292, as of 2026-10-28 · in force
Minimum founders for a trade union	30 workersCódigo del Trabajo art. 292, as of 2026-10-28 · in force
Minimum founders for an industry union	300 workersCódigo del Trabajo art. 292, as of 2026-10-28 · in force
Objection period after provisional union registration	30 daysCódigo del Trabajo art. 300 (Ley 496/1995), as of 2026-10-28 · in force
Headcount from which a collective agreement is mandatory	20 workersCódigo del Trabajo art. 334, as of 2026-10-28 · in force
Collective agreement review period	2 yearsCódigo del Trabajo art. 333 (Ley 496/1995), as of 2026-10-28 · in force
Headcount above which approved internal rules are needed for suspensions	10 workersCódigo del Trabajo art. 354, as of 2026-10-28 · in force
Maximum unpaid disciplinary suspension	8 daysCódigo del Trabajo art. 353, as of 2026-10-28 · in force
Strike notice to authority and employer	72 hoursCódigo del Trabajo art. 364 (Ley 496/1995), as of 2026-10-28 · in force
Deadline for the labor judge to rule on strike legality	72 hoursCódigo del Trabajo art. 378 (Ley 496/1995), as of 2026-10-28 · in force

The rule

1. Freedom to organize and union registration. Workers and employers, regardless of sex or nationality, may freely form organizations without prior authorization, and may join or leave them; employer interference to dominate or finance worker unions is prohibited. Worker unions are organized by company, trade or industry; employer unions need at least three members, company unions at least 20 founders, trade unions 30 and industry unions 300. Members must be over eighteen, may be Paraguayan or foreign, may belong to one union only, and employer representatives cannot join. Founders file the founding minutes, the bylaws and the list of founders with the labor authority, which registers the union provisionally and publishes the documents for 30 days; with no objections registration becomes final automatically, and decisions can be appealed to the Labor Court of Appeal within three days.
Cost to do it: No registration fee in the Code; union formation costs fall on the workers.
Example: A company with 25 workers can face a company union if 20 of them sign the founding minutes. / Same.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 283, 284 and 300 (as amended by Ley 496/1995 art. 1), 286, 289, 292, 293 and 294, 1995-08-22 official text · verified 2026-10-28

2. Union stability. Union stability protects certain workers from dismissal, transfer, suspension or changes in conditions without a just cause previously admitted by a judge: up to eleven executive committee members (3 for company unions of 20 to 30 members, 4 for 31 to 50, then 1 per 30 members), delegates of the majority trade union, up to three organizers, up to four negotiators of collective agreements or internal rules, and candidates. Candidates are protected 30 days before and, if not elected, 30 days after the election; negotiators from notice to the employer until 90 days after the agreement is registered; organizers from 30 days before the founding assembly to six months after; elected leaders until six months after their term. The union must notify the employer in writing of the protected persons. In a claim the judge orders reinstatement within 48 hours as an interim measure; protection cannot cover the same person for more than two terms in ten years. Unfair practices against union stability are fined 30 minimum wages per worker, doubled on repetition.
Cost to do it: Dismissing a protected worker requires prior court proof; unfair practice fine of 30 minimum wages per worker.
Example: A union with 45 members in the company has 4 protected executive members. / Fine for one protected worker dismissed unlawfully: 30 minimum wages; at the monthly minimum that would be about US$15,562, at the daily jornal about US$599.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 317, 318, 321 and 322 (as amended by Ley 496/1995 art. 1), 319, 320, 323 and 393, 1995-08-22 official text · verified 2026-10-28

3. Collective agreements. A collective agreement is a written agreement on working conditions between one or more employers and one or more representative worker organizations or, if none exists, elected worker representatives. It must be signed in three copies and has no legal effect until approved and registered by the labor authority at the request of either party. Its terms extend to everyone working in the company, union members or not, cannot be less favorable than the law, and override less favorable individual contracts. Every company employing 20 or more workers must conclude a collective agreement on working conditions, negotiated with the union if there is one. Agreements are reviewable every two years at the request of parties representing at least 51 percent of those covered; in an economic crisis threatening the company the employer may propose early changes, and if agreed the affected workers cannot be dismissed without just cause during that period. Agreements without a fixed term can be ended by either party with 30 days' written notice; an agreement signed by two thirds of the employers and unionized workers of a branch can be extended to the whole branch as a contrato ley. Refusing to recognize a registered union or to sign the mandatory agreement is fined 50 minimum daily wages, doubled on repetition.
Cost to do it: Refusal fine of 50 jornales, PYG 5,853,850 (US$998).
Example: A plant with 60 workers and no union must still negotiate a collective agreement with elected worker representatives. / Refusal fine about US$998.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 329 and 333 (as amended by Ley 496/1995 art. 1), 326, 328, 330, 334, 337, 343, 344 and 394, 1995-08-22 official text · verified 2026-10-28

4. Internal work rules and discipline. Internal work rules (reglamento interno) are agreed by equal numbers of employer and worker representatives to regulate order, discipline and safety; the employer may issue technical and administrative productivity rules on its own. Disciplinary measures may be verbal warning, written warning, suspension without pay of up to eight days, transfer or temporary postponement of promotion. An employer with more than ten workers needs approved internal rules to apply suspension, transfer or postponement of promotion, unless used instead of dismissal. The rules are filed by the employer within eight days of signature, and the labor authority approves and registers them within 15 days (six days for observations); registration makes them binding, and they must be posted in visible places.
Cost to do it: No filing fee in the Code; drafting and negotiation cost only.
Example: A company with 15 workers cannot suspend a worker without pay unless its internal rules are approved. / Same.Ley Nº 213/1993 Código del Trabajo, Art. 350, 351, 353, 354, 355, 356 and 357, 1993-06-29 official text · verified 2026-10-28

5. Strikes and lockouts. A strike is a temporary, collective and concerted stoppage by workers in defense of their professional interests; it must be peaceful and without occupying the workplace. Members of the armed forces and police have no right to strike. Workers of essential public services such as water, electricity and hospitals must guarantee essential supply. The strike decision, assembly minutes and signatures and the names of negotiators or of a five member strike committee must be given to the authority and to the employer at least 72 hours before the strike, with its objectives and duration; a bipartite commission then has 72 hours to seek agreement. A strike during a collective agreement is illegal unless it concerns the employer's breach of the agreement or the law, or is a solidarity or general strike. While a strike has not been declared illegal the employer cannot replace strikers with outsiders, and strikers must keep minimum staff for safety and conservation. The labor judge on duty rules on legality within 72 hours. The contract is suspended and strike days are unpaid unless the settlement provides otherwise; taking part in an illegal strike may justify dismissal. Employer lockouts are guaranteed: a lockout declared legal does not require paying wages, an illegal one does.
Cost to do it: Strike days are unpaid; illegal lockout days must be paid.
Example: A union notifies a strike on Monday at 9:00; the earliest lawful start is Thursday at 9:00. / Same.Ley Nº 213/1993 Código del Trabajo, as amended by Ley Nº 496/1995, Art. 362, 363, 364, 366, 368, 376, 378, 379 and 381 (as amended by Ley 496/1995 art. 1), 358 to 361, 369, 372 to 375 and 377, 1995-08-22 official text · verified 2026-10-28

Union members	Protected executive members
20 to 30	3
31 to 50	4
51 and above	1 for each 30 members, as worded in art. 318, up to 11 in total

Protected union leaders in a company union (Código del Trabajo art. 318 as amended by Ley 496/1995)

Worked example

A Spanish manufacturer's Paraguayan plant employs 80 workers. Because it has 20 or more workers, it must conclude a collective agreement on working conditions, and register it with MTESS for it to take effect (Código del Trabajo art. 328 and 334).
Forty five workers form a company union. With 45 members it has 4 protected executive members, plus protected organizers, negotiators and candidates for the set periods (art. 318 and 319).
Because it has more than ten workers, the plant registers internal rules so it can impose unpaid suspensions of up to eight days (art. 353 and 354).
During the agreement's term, the union calls a strike over a wage claim not covered by any breach: the employer can ask the labor judge on duty to declare it illegal, who must rule within 72 hours (art. 366 and 378).

Step by step

At 20 workers, open collective bargaining with the union or elected representatives and file the signed agreement for approval and registration (art. 326 to 328 and 334).
Above 10 workers, negotiate internal rules with worker representatives and file them within eight days of signature (art. 350, 354 and 356).
Keep a register of workers with union stability notified by the union and route any discipline of them through prior court proof (art. 321 and 322).
On strike notice, check the 72 hour notice and essential service rules and join the bipartite commission (art. 362 to 364 and 374).

Common traps

The collective agreement duty at 20 workers applies even without a union; refusing it is fined (art. 334 and 394).
An unregistered collective agreement has no legal effect (art. 328).
Union protection starts before the union exists: organizers are covered from 30 days before the founding assembly (art. 319).
Replacing strikers with outside workers before a court declares the strike illegal is prohibited (art. 368).

Sources

← Dismissal and severance in Paraguay: notice, 15 days' pay per year, just causes, closures and the ten year stability ruleOutsourcing, contractors and labor intermediaries in Paraguay: when the client is the employer →

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