Countries › Paraguay › Guide › 16. What is normal abroad but not here › Job stability after ten years of service

Job stability after ten years of service

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

Abroad, long service usually raises severance but does not lock in the job. In Paraguay, a worker with ten uninterrupted years with the same employer acquires stability and can only be dismissed for a just cause proven first before a labor judge. If the cause fails, the employer reinstates with back pay or pays a double indemnity; closures also trigger the double indemnity.

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

Key facts

Years of service that give job stability	10 yearsCódigo del Trabajo art. 94, as of 1993-06-29 · in force
Indemnity multiple for stable workers	2 timesCódigo del Trabajo art. 97, as of 1993-06-29 · in force
BCP reference rate, PYG per US dollar, 28 October 2026	5868.31 PYGBCP planilla de cotizaciones, as of 2026-10-28 · in force

The rule

1. Ten uninterrupted years bring stability. The contract of a stable worker can only end if the employer first proves a legal just cause, if the worker ordered reinstated chooses the double indemnity instead, or if the worker retires. A retired worker may be rehired, with unchanged pay and benefits, 90 days of notice compensable in cash and no seniority indemnity.
Cost to do it: No fee; the cost is litigation before any dismissal.
Example: A worker hired on 1 November 2016 becomes stable on 1 November 2026. / Not applicable.Ley Nº 213/1993, Código del Trabajo (promulgated 29 June 1993), art. 94 (not amended by Ley 496/1995), 1993-06-29 official text · verified 2026-10-28

2. Proof comes first. A stable worker accused of a dismissal cause is suspended during the court case and may only be dismissed after the cause is proven before the labor judge. If it is not proven, the employer must reinstate the worker and pay the salary for the suspension period; the worker may instead take the double indemnity plus omitted notice.
Cost to do it: Back pay for the whole suspension if the claim fails, plus court and lawyer costs.
Example: If a suspension lasts 8 months for a worker paid PYG 10,000,000 a month and the cause fails, back pay alone is PYG 80,000,000. / About US$13,633.Ley Nº 213/1993, Código del Trabajo, art. 95 and 96, 1993-06-29 official text · verified 2026-10-28

3. Double indemnity. Where reinstatement is not feasible because of an incompatibility proven in court, the employer pays twice the indemnity for dismissal without cause based on seniority. The same double indemnity is owed when the establishment, branch, agency or subsidiary where the stable worker works closes without legally proven force majeure, and on total closure or a final reduction of work proven before the labor authority.
Cost to do it: Twice 15 daily wages per year of service, plus 90 days of notice or pay in lieu.
Example: A stable worker paid PYG 10,000,000 a month with 11 years of service is owed PYG 110,000,000 (double PYG 55,000,000) plus PYG 30,000,000 for 90 days of omitted notice. / About US$18,745 plus US$5,112, about US$23,857 in total.Ley Nº 213/1993, Código del Trabajo, art. 97, 98 and 99, 1993-06-29 official text · verified 2026-10-28

Seniority	Indemnity	Notice in lieu	Total
9 years (not stable)	PYG 45,000,000	PYG 20,000,000	PYG 65,000,000
11 years (stable, double)	PYG 110,000,000	PYG 30,000,000	PYG 140,000,000

Cost of ending the contract of a worker paid PYG 10,000,000 a month

Worked example

A manufacturer reorganising a plant reviews its payroll and finds ten workers about to reach ten years. Ending those contracts before the stability date costs ordinary severance; after it, a contested dismissal leads to reinstatement or a double indemnity of about US$18,745 per worker at PYG 10,000,000 a month with 11 years.

Step by step

Keep a seniority register and flag workers approaching ten years.
Decide on any restructuring well before the ten year date.
For a stable worker accused of a just cause, file in the labor court before dismissing.
On a closure, document the closure or reduction before the labor authority (art. 99).

Common traps

Dismissing a stable worker and paying ordinary severance: without prior proof of cause the worker can claim reinstatement and back pay (art. 95 and 96).
Breaking continuity on paper: art. 218 declares null any clause meant to interrupt the continuity of service, and sickness, leave and vacation do not break it (art. 92 c).
Closing a branch without proven force majeure: stable workers there are owed the double indemnity (art. 98).

Sources

← No dismissal at will: notice and indemnityThirteenth salary (aguinaldo) and vacation by seniority →

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