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UNITED STATES DEPARTMENT OF LABOR
W . N. DOAK, Secretary

BUREAU OF LABOR STATISTICS
ETHELBERT STEWART, Commissioner

BULLETIN OF THE UNITED STATES \
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r Py
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BUREAU OF LABOR S T A T IS T IC S / • • • • JjO. D M
FO R E IG N LABOR LAWS SERIES

LABOR LEGISLATION
OF PARAGUAY

v\

OCTOBER, 1931

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1931

For sale by the Superintendent of Documents, Washington, D. C.

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Price 10 cents

Acknowledgment

This translation of the labor laws of Paraguay was made under
the direction of Ethel Y. Larson, of the Bureau of Labor Statistics,
ii

Contents
Page

Introduction and summary__________________________________________
Text of labor legislation:
Workmen’s compensation—Law No. 926, of September 7, 1927______
Sunday rest—
Law No. 242, of June 7, 1917_________________________________
Regulatory decree No. 22037, of October 19, 1925______________
Retirement of railroad employees—Law No. 842, of August 23, 1926m

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BULLETIN OF THE

U. S. BUREAU OF LABOR STATISTICS
n o . 554

WASHINGTON

o c t o b e r , 1931

LABOR LEGISLATION OF PARAGUAY
Introduction and Summary
Continuing the series of bulletins on labor legislation enacted in
the Latin American countries, the United States Bureau of Labor
Statistics presents in this volume the labor laws of Paraguay, which
have been compiled and translated from the original texts obtained
through the State Department from the American consul general at
Asuncion.
Workmen’s Compensation Law
On September 7,1927, the President of Paraguay signed the work­
men’s compensation law (No. 926) which had passed the Senate and
Chamber of Deputies on August 31, 1927. The outstanding provi­
sions of this legislation are given below.
Employments Covered

Individuals or firms engaged in manufacturing, shopwork, or other
industrial and commercial occupations, the construction, repair, and
maintenance of buildings, railways, ports, dikes, canals, etc., agricul­
tural pursuits in which mechanical power is used, stock raising, meat
packing, and kindred industries, mining and quarrying, transporta­
tion, loading and unloading, the manufacture or use of explosives,
inflammable materials or electricity, the installation of telephone
and telegraph systems, and the preparation of yerba mate will be
liable for industrial accidents occurring to their employees or labor­
ers when the accident arises out of and in the course of the employ­
ment or is the result of an unforeseen event or cause inherent in the
character of the work. For the purposes of this law the State and
municipalities shall be considered as employers.
The law exempts the employer from all responsibility in the fol­
lowing instances:
(1) In stock raising, workshops, mate plantations, and retail busi­
nesses, when he employs fewer than seven employees or workers;
(2) when the accident was caused intentionally by the injured
worker or one of his heirs; (3) when the injured worker was under

1

2

LABOR LEGISLATION OF PARAGUAY

the influence of liquor; (4) when the accident was due to force
majeure.
The responsibility of the employer continues even when the em­
ployees work under the direction of an agent or contractor.
Benefits
The compensation scale is based upon the earnings of the injured
employee. The daily wage is used as a basis in fixing compensation
for temporary disability. In case of a worker who has not been
employed for the whole year, the compensation is computed on his
average daily earnings multiplied by 300.
Only a disability lasting more than 10 days shall be compensated.
The total amount of compensation may not exceed 50.000 pesos 1
nor may the daily salary be computed at less than 15 pesos, even
in the case of unpaid apprentices.
Employer’s property is subject to attachment for failure to pay
these benefits promptly.
Death.—If the industrial accident causes death, the employer
shall pay, in addition to funeral expenses, which are not to exceed
2.000 pesos, an amount equal to the worker’s average earnings for
1.000 days. Only the surviving spouse or minor children who have
been supported oy the deceased receive this compensation, except
where there are ascendants who have lived with and been supported
by him, in which case they also shall share in the benefits.
Permanent total disability.—An employee who is permanently and
totally disabled as the result of an industrial accident shall receive
compensation equivalent to his average earnings for a period of
1.000 days.
Permanent partial disability.—In cases of permanent partial dis­
ability resulting from an industrial accident the employer shall pay
an amount equal to 1,000 times the reduction in daily wages suffered
as a result of the accident.
Temporary disability.—For temporary disability employers are
required to pay employees two-thirds of their regular wages during
their disability, provided that it does not last longer than a year.
If it exceeds this time, permanent disability benefits shall be awarded
the employee.
The "Executive shall determine the injuries which shall constitute
permanent total and temporary total disability and the correspond­
ing compensation based on the reduction in working ability brought
on by the injury, taking into account the occupation, age, and
education of the injured worker.
Medical attention.—Where an industrial accident takes place from
a cause for which the employer is not legally excusable, he shall
provide free medical attention until the employee is able to return
to work, dies, or is declared to be permanently disabled.
Occupational Diseases
In case the employee is incapacitated or dies as a result of a
disease contracted while carrying on his work, or where it is proved
ll peso=2.26 cents.

INTRODUCTION AND SUMMARY

3

to have originated from work carried on by him during the year
previous to his disability, he shall be compensated. Benents are not
payable, however, if it is proved that the workman was suffering
from the disease before entering the employment. The compensa­
tion must be claimed from the last employer for whom the man
worked during the year referred to, on the kind of work which
caused the disease, unless it is proved that the same was contracted
while in the service of other employers, in which case the latter shall
be liable. If the disease, owing to its nature, could have been con­
tracted gradually, the other employers in whose service the worker
had been employed during the last year, on the kind of work which
caused the disease, are liable to the last employer for a proportionate
share of the compensation, to be fixed by arbitrators if there is any
disagreement concerning it;
The worker shall be entitled to receive as the first payment 15 per
cent of the total amount of the compensation due him. When the
total compensation amounts to less than 10,000 pesos it shall be paid
in a lump sum.
The executive shall enumerate the occupational diseases which are
compensable.
Accident Reporting

The employer is required to report an industrial accident to the
nearest judicial authority within 30 days, if it causes the worker’s
death or his permanent total or temporary total disability. A fine
of from 100 to 1,000 pesos is imposed on those failing to comply with
this provision.
Sunday Rest
Under the Paraguayan Sunday rest law (No. 242), which was
enacted June 7, 1917, and its regulatory decree of October 19, 1925,
compulsory Sunday rest became effective throughout the Republic.
According to the provisions of this law business houses must close
on Sundays and legal holidays, and the sale of alcoholic beverages
is forbidden on these days, except that wines and beer may be sold
by hotels and restaurants during the luncheon and dinner hours
from 11 a. m. to 1 p. m. and from 7 to 9 p. m.
Specific exceptions under the law are given in great detail.
Retirement Annuities and Pensions for Railroad Employees
A retirement annuity and pension fund was created for the perma­
nent employees of the railroads by Law No. 842 of August 23, 1926,
and its amendment, Law No. 1076, of August 23,1929. Employees in
restaurants, confectioneries, etc., which are adjuncts of the railroad
service, are included, even though employed by concessionnaires.
The employees are required to contribute 5 per cent of their salaries
or wages up to maximum of 150 gold pesos; new employees, the
amount of the first month’s salary in 10 monthly installments; those
already employed are required to pay to the fund the amount of one
month’s salary in 24 monthly installments; and the difference in the
first month’s salary when given an increase in salary. The railroad
companies contribute 2 per cent of the salaries and wages of the
employees and workers and an additional 3 per cent of the cash

4

LABOR LEGISLATION OF PARAGUAY

receipts for tickets, special trains, freight, etc. Provision is made
for the reception of donations, legacies, fines, and interest, as well as
overpayments not reclaimed by the public within a year.
Benefits
An employee may be granted an ordinary annuity, equivalent to
the average salary received during the last five years of service, if
he has reached the age of 50 and has rendered 25 years’ service.
The employee who has served more than 10 years and who is at
least 50 years of age will receive the annuity in the following propor­
tion: For the tenth, eleventh, twelfth, thirteenth, and fourteenth
years of service, 50, 60, 70, 80, and 90 per cent, respectively, shall
be taken of the average salaries received during the last five years,
multiplying this figure by the years of service and dividing by 25.
After 15 years the basis shall be the average wages received during
the last five years, in full, multiplied by the years of service and
divided by 25. The employee who has not reached the age of 50
and who wishes to retire shail have his annuity reduced 20 per cent.
Disability annuity is granted in an equal proportion to railroad
employees who after 10 years of service are declared physically or
mentally incapacitated, and to those who are permanently disabled
in the line of duty from a cause arising out of the service regardless
of their age or length of service.
Pensions are provided for the widow, invalid widower, children, or
if there are no children, the parents, on the death of employees having
a right to a retirement annuity. The amount of the pension is 50
per cent of the full retirement annuity. Pensions cease upon the
widow’s, widower’s, or mother’s remarriage; when the sons reach the
age of 18 years; and when the daughters remarry or become of age.
Administration
The funds are administered by a board of directors composed of
two representatives each of the employers and workers with a chair­
man appointed by the executive authority.

Text of Labor Legislation
Workmen’s Compensation
LAW NO. 926, OF SEPTEMBER 7, 1927
Article 1. Every employer, whether an individual or a corporation, shall be
civilly liable for the accidents suffered by his employees and workers arising out
of and in the course of the employment in which they are engaged, or due to a
fortuitous event or force majeure connected with the nature of the work.
Art. 2. For the purposes of this law, by “ employer ” will be understood the
individual or company owning the work, operation, industry, or business in
which the work is performed; by “ worker or employee,” the one who performs
for another manual work outside of his own home.
An industrial accident is one which arises out of and in the course of the
work, causing bodily injuries disabling the worker temporarily or permanently
from performing his work. Accidents due to fortuitous events or force majeure
connected with the nature of the work which caused such injuries shall also be
considered industrial accidents.
Art. 3. Workers or employees who render services in the following industries
and enterprises are covered by this law:
(а) Factories, workshops, industrial and commercial establishments.
(б) Construction, maintenance, and repair of buildings, railways, ports, dikes,
canals, and similar works.
(c) Agriculture—the personnel employed in the management or operation of
motors or machines.
(d) Stock raising, meat preserving, cold storage, and other branches of the
meat industry connected therewith.
(e) Mines and quarries.
(f) Transportation, loading, and unloading.
(g) Manufacture or use of explosives, inflammable materials, or electricity,
the installation of telephone and telegraph [systems] and lightning rods.
(h) Forestry enterprises, cultivation and preparation of mat6.
Art. 4. In stock raising, forestry enterprises, mat£ plantations, and retail
businesses only employers or contractors who employ more than six workers or
employees are liable under this law.
Art. 5. The employer is exempt from all liability for industrial accidents:
{a) When the accident is caused intentionally by the injured worker.
(&) When the injured worker is under the influence of liquor at the time of
the accident.
(c) When it is due to force majeure not connected with the nature of the
work.
(d) The employer shall also be exempt from liability as to any of the heirs
of a deceased worker when the latter caused the accident voluntarily or by his
culpable negligence.
Art. 6. The liability of the employer continues even when the worker or
employee works under the direction of agents or contractors whom the owner
has employed to operate the industry, provided the management of the work
and the control inherent in its execution are in charge of the employer or the
contractor, as the case may be.
Art. 7. In order to be compensated, the disability must last longer than
10 days.
Art. 8. The following must be considered in determining the amount of the
compensation:
(a)
When the accident causes the worker’s death, the employer is required
to pay the funeral expenses, which may not exceed 2,000 pesos (legal currency),
and to pay an amount equal to the worker’s average earnings at the time of the
accident for 1,000 days.
63246°—31----- 2
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LABOR LEGISLATION OF PARAGUAY

(6)
In case of permanent total disability the compensation to the injured
worker shall be equal to that awarded in case of death.
(c) For permanent partial disability the compensation shall be 1,000 times
the reduction in daily wages suffered as a result of the accident.
(d) If the accident causes the worker to be temporarily incapacitated for
the work, the compensation shall be two-thirds of his regular wages during his
disability. If he has not recovered at the end of the year, it shall be regarded
as permanent for the purposes of compensation.
Art. 9. In no instance may the total amount which the employer has to pay
exceed 50,000 pesos (legal currency).
Failure to pay the pension punctually subjects the employer’s property to
attachment.
Art. 10. When a worker is killed, only the widow and minor children who
have been supported by the deceased shall be entitled to compensation.
The ascendants shall share with the latter only when they have lived with
and been supported by the deceased, in which case the compensation shall be
distributed pro rata.
Art. 11. For the purposes of the preceding provisions the executive authority
shall determine by regulation the injuries which shall be considered as perma­
nent total and temporary total disability, and the valuation thereof on the
basis of the reduction in working capacity occasioned by said injuries, taking
into consideration the occupation, age, and education of the injured worker.
Art. 12. For the purposes of this law, by “ average wage ” is understood the
remuneration received by the worker in money or in other form, whether it be
for work by the job, for extra work, or as a gratuity, a share in the profits, or
any other additional remuneration which is of a regular character in the
industry.
By “ average daily wage ” is understood the fixed wage which is stipulated
for a working day and any additional remuneration.
The daily wage shall serve as the base in determining the compensation for
temporary disability.
By “ average annual wage ” shall be understood the sum of the daily wages
earned by the injured worker for the 12 months preceding the date on which
the accident occurred. If he had worked less than 12 months, the annual wage
shall be determined by multiplying the average daily wage which he received
by 300.
If the wage of the worker was variable or by the job, the daily wage shall
be determined by dividing the remuneration received during the time he was
in the service of the employer, if such time was less than one year, by a figure
equal to the number of days which the worker had worked in the industry or
enterprise.
The fixing of the wage which, in whole or in part, is not paid in money
shall be made by the judge of the case according to the circumstances under
which the work was performed and taking into consideration the value of the
same or other kind of services in the locality, and the rate of wages for workers
in the same occupation or trade, or in lieu thereof that of occupations or trades
similar to that in which the accident occurred.
Art. 13. A daily wage shall never be considered to be less than 15 pesos, even
when applying to apprentices who receive no remuneration or workers who
receive less than this amount.
Art. 14. Compensation for industrial accidents is not subject to attachment,
transfer, set-off, or waiver.
A rt. 15. A worker injured in an accident which resulted in a disability shall
lose his right to continue receiving that part of his wage granted to him by
the law from the day he leaves the country, and the heirs of alien workers will
not receive any compensation if they did not reside in the country at the time
the accident took place.
Art. 16. The procedure to be followed in actions to which the application o f
this law may give rise shall be that provided by the Code of Civil Procedure
for dilatory pleas, the parties in their respective complaints and answers being
required to give all facts in support of their claim which they believe they are
entitled to present, attaching all the documents and offering all the proofs on
which they base their claims.
A rt. 17. In addition to the action granted him against the employer or con­
tractor, the injured worker or his representatives have the right to bring an
action under the Civil Code against a third party who has caused the accident,
to recover damages therefor. By “ third party ” is understood one who is not

TEXT OF LEGISLATION

7

connected with the industrial operation, the employer and his workers or
employees being thus excluded from this classification. The compensation
secured from a third party in conformity with this provision exempts the
employer from his liability for the part which the third party causing the accir
dent is obliged to pay. The action against a third party may be brought by the
employer at his own expense and in the name of the injured worker or his heirs,
if they have not brought it within eight days after the accident occurred.
Art. 18. Action for payment of the compensation must be brought within
one year from the day of the accident. This provision does not apply to minors.
Art. 19. In case a worker is incapacitated or dies as a result of a disease
contracted while in the exercise of his occupation or employment, he shall be
entitled to receive the compensation awarded by this law, under the following
conditions:
(a) The disease must be due exclusively to the kind of work the injured
worker was doing during the year preceding the disability.
(b) Compensation shall not be paid, however, if it is proved that the worker
was suffering from such disease before entering the employment which he had
to give up.
(c) The compensation must be claimed from the last employer for whom the
man worked during the said last year in the occupation in which the disease
originated, unless it is proved that the same was contracted while in the service
of other employers, in which case the latter shall be liable.
( d) If the disease, owing to its nature, could have been contracted gradually,
the employers in whose service the worker had been employed during the last
year on the kind of work which caused the disease shall be required to reim­
burse proportionally to the last employer the compensation paid by him, the
proportion to be fixed by arbitrators if there is any controversy concerning it.
\e) The worker shall be entitled to receive as the first payment 15 per cent
of the total amount of the compensation.
(f )
When the compensation amounts to less than 10,000 pesos it shall be
paid in a lump sum.
Art. 20. The executive authority shall specifically enumerate the occupational
diseases which are compensable.
A r t . 21. In case of death or manifest permanent total or temporary total
disability of the worker, the employer is required to report the accident within
30 days of its occurrence to the nearest judicial authority, before whom a
record shall be made stating the circumstances under which the accident
occurred. Failure to comply with this provision shall be punished by a fine
of from 100 to 1,000 pesos.
Art. 22. Any agreement contrary to the provisions of this law shall be abso­
lutely void.
Art. 23. When an accident occurs from a cause for which the employer is
not legally excusable, he is required to furnish free medical and pharmaceu­
tical attention to the injured worker until he is able to return to his work,
dies, or is declared permanently disabled, provided the worker accepts the
medical attention of the physician designated by the employer.
Art. 24. The worker injured in an industrial accident, or his legal heirs,
shall be entitled to sue for compensation in forma pauperis.
Art. 25. The Federal Government and the municipalities shall be considered
as employers for the purposes of this law.
Art. 26. The executive authority shall issue the necessary regulations for
the enforcement of this law and other measures to prevent industrial acci­
dents, and any safety and sanitary measures required, by the nature of the
enterprises covered by this law.
Enterprises shall be required to comply with said regulations, under penalty
of fines of from 100 to 5,000 pesos (legal currency) to be imposed by the execu­
tive authority.
Art 27. The executive authority shall issue the necessary regulations for
the enforcement of this law.

Sunday Rest
LAW NO. 242, OF JUNE 7, 1917
A r t i c l e 1. The performance on Sundays and legal holidays of manual work
fur another and of work done publicly for the worker himself in factories,
workshops, commercial enterprises, and other establishments or work places

8

LABOB LEGISLATION OP PARAGUAY

shall be prohibited throughout the Republic, subject only to the exceptions
specified in this law and in the regulations to be issued thereunder.
Abt. 2. The following shall be excepted from the above prohibition in con­
formity with the rules laid down below and the regulations to be issued by the
executive authority:
(a)
Work which can not be interrupted, either because of the nature of the
needs which it satisfies or for reasons of a technical character, or because the
interruption would cause serious injury to the public interest or to the industry
itself; such work may be done without a special permit, in conformity with the
rules laid down in the regulations.
(&)
Repairing or cleaning work in industrial enterprises which is necessary
in order that the work during the week may not be interrupted thereby.
(c)
Any urgent work that may become necessary because of impending dis­
aster or because of an accident or other temporary circumstances which must
be dealt with.
The regulations shall specify the weekly rest for the persons covered by the
exceptions.
Art. 3. The provisions of this law shall not apply to domestic service.
Abt. 4. Establishments where alcoholic beverages are sold shall remain closed
on Sundays and legal holidays.
Art. 5. In default of proof to the contrary, employers shall be deemed to be
responsible for violations of this law, and shall be liable to a fine of 100 pesos
for a first offense and of double that amount or 15 days’ imprisonment for a
second or further offense, without prejudice to the obligation to comply with
the law.
Art. 6. The penalties provided for in the preceding articles shall be imposed
by the correctional magistrates in the capital and by the justices of the peace
in rural districts after summary proceedings.
Art. 7. This law shall become effective 90 days after promulgation.
REGULATORY DECREE NO. 22037, OF OCTOBER 19, 1925
Article 1. In conformity with the provisions of Law No. 242, the performance
on Sundays and legal holidays of manual work for another and of work done
publicly for the worker himself, in factories, workshops, commercial enter­
prises, and other establishments or work places shall be prohibited throughout
the Republic, subject only to the exceptions specified in the said law and in
these regulations.
Art. 2. The prohibition of manual work on Sundays and legal holidays shall
apply to the period between midnight of the day before and the following
midnight.
Art. 3. Manual work shall be considered to mean any employment in which
the exercise of physical powers predominates.
Art. 4. For the purposes of the prohibitions and exceptions provided for in
the law and these regulations—
(а) Manual work for another shall be considered to mean such work per­
formed by order of another person for which the worker, artisan, agent, or
employee who performs the work receives no pecuniary compensation other
than the wage or remuneration paid to him.
(б) Manual work done publicly for the worker himself shall be considered
to mean work which is performed in the public streets or can be seen there­
from, provided profit is derived therefrom or that it is the carrying on of a
shop, business, etc.
Art. 5. For the purposes of article 3 of the law, domestic service shall be
considered to mean the employment of persons for a wage in the service of
other persons or families for the purpose of doing their work or attending
them, provided said persons are not employed for purposes of direct gain [ini
commerce or industry.
Art. 6. Persons who perform manual work on Sundays and legal holidays
under the exceptions allowed by the law and these regulations shall be entitled
to a compensatory rest during the following week, within the ordinary working
hours, consisting of a continuous period of time equal to that which they
have worked on Sunday.
Art. 7. Owners of enterprises covered by the provisions of the preceding
article shall be required to keep a special list, giving the names of the persons
employed and the turn of each one of them for the compensatory rest period.
This list shall be posted in a conspicuous place, and the owner of the com­

TEXT OF LEGISLATION

9

mercial or industrial establishment in question shall submit it to the police
authorities whenever so required.
Art. 8. In case of manual work, carried on day and night without interrup­
tion, the change of shifts shall be made at the customary hours, and the rest
period of the persons entitled thereto shall begin and end at the same hours.
Art. 9. Continuous or occasional manual work permitted on Sundays and
legal holidays by exception shall be performed by the minimum number of
workers, artisans, agents, or employees, necessary therefor, and the work
shall not continue beyond the time absolutely necessary for the performance
of the work for which the exception is authorized.
Art. 10. Commercial establishments which are not allowed to do business
on Sundays and legal holidays under the provisions of the law and these
regulations shall remain closed, but if the door is the only means of ventila­
tion and the owner of the industrial or commercial establishment, his family,,
or clerks live in the said establishment or house, they may keep the door
half open, provided a notice shall be posted informing the public that the
establishment is not open for business.
Art. 11. In deciding whether or not a business must remain closed on;
Sundays and legal holidays, the license for the branch of business carried
on therein shall be taken into consideration, but the fact that reference Is
made in said license to the sale of goods belonging to an excepted class as
supplementary to the regular business of the establishment, can not be made
a pretext for classing the business under the said exceptions.
Art. 12. A merchant who refuses to comply with the orders of the authori­
ties, or who sells goods when their sale is prohibited, shall forfeit the benefit
of the exception and, in addition to the penalty to which he is liable for the
violation, shall be required to keep his establishment closed on Sunday.
The order for the closing of the establishment on Sunday by virtue of the
above provision shall not be canceled except as the result of an appeal to the
Ministry of the Interior, and in this connection the reasons for closing the
establishment and the report of the police authorities shall be taken into
consideration.
Sale of alcohol
Art. 13. The sale of alcoholic beverages of all kinds, regardless of the per­
centage of the alcohol therein, for consumption on the premises or in public
shall be prohibited absolutely on Sunday and legal holidays.
Art. 14. Commercial establishments in rural districts, other than Concep­
cion, Encarnacion, Villarrica, and Pilar, which are engaged exclusively in the
hardware, grocery, and provision business, and which do not sell alcoholic
beverages, may remain open on legal holidays until 12 noon.
If any person who takes advantage of the benefits of this article is guilty
of violating the provisions of the law three times in six months, he shall
forfeit the right to carry on business for a period of six months.
Exceptions
Art. 15. In addition to exceptions of a permanent and general character,
occasional and special exceptions may also be authorized, whereby a permit for
the employment on Sunday of a particular person is granted. Applications for
such permits shall be made, on ordinary paper, to the police authorities a suffi­
cient time in advance; the reason or grounds on which the application is based,
the nature of the manual work to be performed, the time and place for ita
performance, and its duration shall be stated. An appeal from the decision of
the chief of police may be made to the Ministry of the Interior.
Art. 16. Work which can not be interrupted, either because of the nature of
the needs which it satisfies, or because interruption would cause serious
injury to the public interest, shall constitute an exception of a general charac­
ter. Such work shall include the following:
(1) In rural districts: Timber cutting, work in tannin plants and on
mat6 plantations; agricultural work; herding of cattle.
(2) Railroad enterprises: Manual work in connection with the movement of
passenger and freight trains, loading and unloading of baggage, parcel post,
perishable goods, and cattle, and the loading of general freight in times o f
accumulation.
(3) In harbors: Work in the embarkation and landing of passengers, baggage,
mail, and perishable freight, such as fruit, fish, etc., and the loading and
unloading of cattle; in the dispatching of trains; in the towing of vessels, botb

10

LABOR LEGISLATION OP PARAGUAY

entering and leaving the harbor; and on small steamers, launches, and
passenger boats for trips and regattas; fire, safety, cleaning, watching, and
necessary repair services; general loading and unloading only in case of
accumulation.
(4) Cartage: Only for the transportation of baggage and for the services
and work authorized by these regulations.
(5) Railways, automobiles, bicycles, carriages for hire and for funerals.
(6) The personnel of private hospitals and sanitariums.
(7) Drug stores, in turn, as determined by the health department, and
exclusively for the preparation and sale of medicines.
(8) Preparation and sale of food for invalids.
(9) Bathhouses, sanitary work in connection with sewers and public comfort
stations.
(10) Hiring of chairs and decorations.
(11) Museums, and telegraph, telephone, ,and radiotelephone services.
(12) Hotels, restaurants, inns, boarding houses, and eating places, provided
they sell wine or beer only during the lunch and dinner hours; i. e., between
11 a. m. and 1 p. m. and between 7 p. m. and 9 p. m.
(13) Markets for the sale of provisions, and meat, fish, poultry, vegetable,
and fruit shops and stalls both inside and outside such markets.
(14) Dairies and creameries.
(15) Bakeries and pastry shops.
(16) Delivery of ice.
(17) Billiard parlors, confectioners’ shops, wine shops, ice-cream shops, tea
rooms, refreshment rooms.
(18) Delicatessen shops.
(19) Street venders, selling articles permitted in specified localities during
the hours when such sale is permitted therein; this exception shall include
itinerant photographers.
(20) Auctioneers, provided the auctions are held on the premises occupied
and used by them exclusively for such purpose.
(21) Messenger service of private enterprises, until 12 noon, provided the
persons so employed are over the age of 16 years and are not employed on this
work on two consecutive Sundays.
(22) In garages and establishments renting automobiles; urgent repair work
on vehicles in case of accident or breakdown occurring on the day in question.
Art. 17. [The following shall be considered to be work which can not be
interrupted, either] for reasons of a technical character or because interruption
would cause serious injury to the public interest, viz, in lighting enterprises,
manual work in production and distribution, repairing of conduits, appliances,
etc., carried on by enterprises which produce and supply light, power, or heat
by means of electricity, gas, acetylene, alcohol, or any other system.
Akt. 18. [The following shall be considered to be work which can not be
interrupted] because of the nature of the needs which it satisfies or because the
interruption would cause serious injury to the worker or to the industry itself:
(1) Moving by the worker of his own furniture and belongings on Sunday
or a legal holiday in order to take advantage of the cessation of work.
(2) Work in theaters, circuses, motion-picture houses, and other places of
public entertainment, and in bands, orchestras, and in connection with music
in general.
(3) Work in the printing, distribution, and sale of daily newspapers.
(4) Work of stablemen, the raising of poultry and other fowl, the feeding,
care, and cleaning of animals, and the removal of refuse.
(5) In plant and flower shops: Making up and sale of bouquets, wreaths,
decorations, and cut flowers in general.
(6) In bicycle shops: Urgent repairs and the renting of bicycles.
(7) In ice factories and cold-storage establishments: Necessary work in the
manufacture of ice, the production of refrigeration, and other work connected
with the industry.
(8) In dairies and creameries: Making of cream and butter, pasteurization
of milk, and preparation and distribution of kefir.
(9) In [sugar] mills, grinding.
(10) Watchmen: Guarding commercial and industrial establishments.
(11) In commercial and industrial establishments: Taking inventories and
making up balance sheets.

TEXT OF LEGISLATION

11

Art. 19. [The following shall be considered as work which can not be inter­
rupted] for reasons of a technical nature or because its interruption would
cause serious injury to the industry:
(1) When the raw material is liable to spontaneous change if it is not
subjected to industrial treatment at the time of its extraction or preparation,
or where the raw material can be used only within a limited period of time.
(2) Work whose performance, including the necessary preparatory and finish­
ing work, requires more than 24 hours, owing to the nature of the operations
to which the raw materials, their derivatives or mixtures or solutions with
other materials, are subjected.
(3) Work in which it is necessary to subject the raw materials, their deriva­
tives, compounds, or mixtures with other materials, to the constant action of
some agent such as heat or cold, or to the continued reaction of the said agent
for more than 24 hours.
(4) Work in order to maintain a constant or fixed temperature in rooms or
apparatus, either owing to the nature of the processes of manufacture or prepara­
tion, if these are continuous, or to enable work to be resumed after the rest period.
(5) Work necessary to complete or terminate operations which must be con­
cluded on Sunday or a legal holiday and which it has been or will be impossible
to finish before midnight on Saturday for the reasons given under paragraphs
(1), (2), (3), and (4), provided the articles or things in question are those
the fabrication or manufacture of which can be completed or the sale of which
is permitted by way of exception in the law or these regulations.
(6) In potteries: Feeding and tending the calcining furnaces.
(7) In brick works: Feeding and tending the kilns, and until 9 a. m. on
Sunday the preparation of the kilns.
(8) In tanneries: Reception of the hides and the maceration processes.
(9) In patent leather and chamois factories: Drying of patent leather and
bleaching of chamois leather in the sun.
(10) In lime and plaster works: (a) In kilns without special heating, feeding
and tending the kilns until 9 a. m. on Sunday; (6) in kilns with grates, feeding
and tending the kilns; also until 9 a. m. on Sunday, withdrawing the finished
product; (c) in circular and chamber kilns, feeding and tending the kilns,
and in addition, until 9 a. m., withdrawing the finished product and putting in
the articles to be finished.
(11) In cement works: In circular kilns, the charging of the calcining kilns
until 9 a. m., the withdrawal of the finished product, and the putting in of
articles to be finished.
(12) In extraction of fats from bones: Finishing the extraction of fats in
operations begun before 6 p. m. on the previous day, and emptying the fat
extractors.
(13) In vegetable-oil factories: Until 6 a. m., processes not completed on
Saturday.
(14) In'stearin factories: Operating the distillation apparatus.
(15) In breweries and malt works: The germination of the barley (or grain),
the preparation. of the mash, and the fermentation; the finishing of any
processes begun on Saturday; the operation of the refrigeration machinery.
(16) In vinegar works: The work of refilling and of fermentation.
(17) In tallow factories: The reception and melting of the fat.
(18) In spaghetti factories: The operation of drying the spaghetti made
before Sunday.
(19) In smelting works: Charging and tending the furnaces and work in
shops connected therewith in the casting of iron and steel for the rolling mills.
(20) In metal galvanizing: Galvanizing by the electrolytic process; super­
vision of the process.
(21) In the manufacture of galvanized iron: Charging the furnaces to keep
the zinc liquid.
(22) In sugar mills, alcohol distilleries, and refineries: The work of manufac­
turing and refining.
(23) In chemical works: The following work—
(a) At roasting and distilling furnaces.
(&) At condensing, concentrating, crystalizing, refrigerating, precipitating,
drying, and compressing apparatus.
(c) At apparatus for the production of oxygen and hydrogen.
(d) At apparatus for dissolving, purifying, and evaporating.
(e) In the filling of receptacles and the transportation of manufactured
products to the warehouses.

12

LABOR LEGISLATION OP PARAGUAY

(24) In the manufacture of cane sirup and work connected therewith.
(25) In the manufacture of soda, potash, caustic soda, and caustic potash,
the operation of.
(a) Melting and calcining furnaces and vessels.
(b) Apparatus for condensation, concentration, crystalization, and precipita­
tion.
(c) Putting the manufactured products into containers and transporting them
to the warehouses.
(26) In compressed oxygen and hydrogen works: At the apparatus for the
production of oxygen and hydrogen and the compression pumps.
(27) In starch factories: The feeding, operation, supervision, and regulation
of the apparatus and machinery for macerating, grinding, elimination of
gluten, filtering, cutting moist starch in squares, and placing in the ovens and
drying.
(28) In cigar factories: Feeding, operating, watching, and regulating the
heaters in the rooms for drying the moist cigars.
(29) In soap works: Feeding the fires under the melting pans.
(30) In reinforced-concrete building: Continuation of work begun before
Sunday.
A rt. 20. The following shall be deemed to be manual work of an urgent
nature because of imminent damage or material accident:
(1) In building: The construction, demolition, or completion of work neces­
sary to insure the stability of a building, or to rebuild or shore up buildings
which threaten to fall, or to prevent floods or to minimize their consequences.
(2) In industrial workshops and establishments: The preparation of the
materials necessary for repairs inside or outside of the workshops or establish­
ments.
(3) In public streets, private houses, and commercial or industrial establish­
ments : Repairs to water pipes, drains, or electrical conductors.
(4) In connection with steamers, vessels, locomotives, railways, and other
means of locomotion: All necessary and urgent repairs to boilers, motors,
tracks, transmission and distribution cables and pipes, and signals.
(5) In private shipyards and docks: Urgent repairs to vessels.
Art. 21. The repairing and cleaning work referred to in the second paragraph
of article 2 of the Sunday rest law shall be considered to mean such work as it
may be found necessary to perform on Sundays and legal holidays in connection
with the machinery, in the buildings and installations in factories and work­
shops, on premises on which work is being done, premises connected therewith,
and the approaches thereto:
(a) In order to finish work begun on the previous day;
(6) In order to avoid interfering with the ordinary work during the week;
(c) In order to avoid causing injury to the industry.
Penalties and procedure
Art. 22. In case of violation the fine specified in article 5 of Law No. 242 shall
be imposed, in case of a second or further offense the fine shall be doubled.
Art. 23. The above penalty shall be imposed in the capital by the correctional
magistrates and in rural districts by the justices of the peace, in summary pro­
ceedings, in the same manner as in the case of violations of police regulations.
A rt. 24. Every time a police official or other competent person reports a viola­
tion of Law No. 242 he shall draw up an official report, on which the proceed­
ings and the decision of the magistrate shall be based.
Art. 25. The accused shall have the right to appeal from the decision, subject
to payment into court of the amount of the fine imposed on him; the sentence
shall be enforceable within 24 hours of its rendition. In the event the sentence is
not appealed, the magistrate shall issue orders to the police authorities to arrest
the person accused in case of repetition of the offense.

Retirement of Railroad Employees
LAW NO. 842, OF AUGUST 23, 1926 (AS AMENDED BY LAW NO. 1076)*
Chapter 1
Article 1. A retirement annuity and pension fund is hereby created for rail­
road employees, subject to the provisions established in this law.
2 Superseding Law No. 641.

TEXT OF LEGISLATION

13

Art. 2. The following are entitled to the benefits of this law:
(a) Permanent employees and workers on the railroads that are established
or which may be established in the country; provided they render public
service.
The provisions of this law include also employees and workers in ports, res­
taurants, confectioneries, etc., whose services are already incorporated or are to
be incorporated in the railroad business, even when the services are in charge
of lessees; also professional men if they receive a monthly salary, also the
employees of the fund created by this law.
(&)
The family of the employees and of workers who have lost the right
to retirement annuities and pensions in the cases indicated in this law.
Art. 3 (as amended by Law No. 1076, of August 27, 1929). For the pur­
poses of this law, employees or workers are considered permanent when they
have rendered continuous service for more than six months in one enterprise.
Chapter 2.—Administration of fund
Art. 4 (as amended by Law No. 1076). The administration of the fund
shall be in charge of a board of directors composed of a chairman, appointed
by the executive authority with the approval of the Senate, two representatives
of the railroad enterprises, and two of the employees or workers of the same,
and an alternate for each party, appointed by the executive authority. For
the election of the representatives of the railroad enterprises, they shall agree
on the candidates. In case no agreement is reached each [enterprise] engaged
in public service shall present a candidate, and the executive authority shall
select from among those proposed; this authority shall also determine the date
for the presentation of the candidates. The enterprises that have not been
represented can not make any claims. In such case the executive authority
must make the appointments. As regards the representatives of the employees
and workers, they shall be elected from the persons designated by secret ballot,
by simple plurality in accordance with the following procedure: (1) In the
various locals of the railroad employees* union they shall vote in conventions
called in their respective localities and presided over by the chairman of the
executive commission of the local. (2) In the intermediary stations on the
borders between the various locals they shall vote in a special ballot box in
the charge of the president or the secretary of the railroad employees* union.
(3) The election returns and the announcement of the candidates shall be made
at a joint session of the governing board, the chairmen of the executive com­
missions of the locals of the railroad employees* union being present.
If the conventions are not held, the executive authority shall appoint the
representatives from the persons on the governing board of the railroad union
which is registered and whose headquarters are in the capital.
The chairman of* the board of directors must be at least 25 years of age,
must be a citizen of Paraguay, and of well-recognized ability and good habits.
This office is of a professional nature.
Art. 5 (as amended by Law No. 1076). The members of the board of directors
shall remain in office four years, may be reelected, and shall receive the salary
fixed in the budget of the fund.
The alternates will not receive a salary except when they substitute for the
regular members.
The retiring members of the board of directors shall continue in the per­
formance of their duties until their substitutes take office.
Art. 6. The employees of the fund shall be appointed or removed by the
board of directors and shall be under the immediate orders of the chairman.
The chairman shall have a voice and vote in the deliberations of the board of
directors, his vote being the deciding one in case of a tie. In addition, he shall
carry out the decisions of the board of directors and shall act as its legal
representative.
Art. 7. In case of the absence of the chairman of the fund, created by this
law, the board of directors shall be presided over by the director whom the
chairman designates.
Art. 8. The board of directors shall draw up its by-laws, and each year its
budget of expenses and the amount of the retirement annunities and pensionsi
and shall present them to the executive authority for his approval.

14

LABOK LEGISLATION OF PABAGUAY

A rt. 9. When the resources do not cover the amount of the annuities and
pensions, which must be paid during the year, a proportionate reduction shall
be made to balance the budget.
Chapter 3.—Resources of the fund
Art. 10. The resources of the fund shall be composed of the following:
(a)
The compulsory monthly deduction of 5 per cent of the wages of each
employee or worker from the date of promulgation of this law. This deduc­
tion will apply up to 150 gold pesos (legal tender) for employees who earn a
higher salary.
(&)
The amount of the first month’s salary of an employee or worker upon
his entrance into the establishments referred to in this law, payable in 10
monthly installments. Those already employed shall pay to the fund the amount
of one month’s salary upon the ratification of this law, in 24 monthly install­
ments; the contribution shall not exceed 150 gold pesos (legal tender) which is
fixed as a maximum.
(c ) The difference in the first month’s wages when the employee or worker
is promoted to a better-paying position or receives an increase of wages, pro­
vided he had not contributed an equivalent or larger amount previously.
( d) A monthly sum which the enterprises shall contribute for this purpose,
equivalent to 2 per .cent of the salaries and wages of all the employees and
workers up to a fixed maximum.
(e) (as amended by Law No. 1076). An additional 3 per cent of the cash
receipts for fares, special trains, parcel-post packages, freight, and fines, and
50 centavos for each telegram sent by the enterprises.
(f) The overpayments not reclaimed by the public within a period of one
year, the rights of the shippers expiring at this period, as well as the unpaid
wages.
(g) The fines imposed in conformity with this law.
(h) The donations and legacies left to the fund.
(i) The interest on the funds accumulated.
A rt. 11 (as amended by Law No. 1076). The railroad enterprises are re­
quired to make the deductions referred to in paragraphs (a), (&), and (c) of
article 10 in the salaries of the personnel of their offices and to deposit them
every month, together with the contributions established in paragraphs (d),
(e), and' (f) of the same article, and those required for the loan service
authorized in article 14 of this law, in cash, in the State Bank or in the bank
designated by the board of directors, under penalty of a fine of from 500 to
1,000 pesos (legal currency) per day for each violation after the board of
directors has notified them. Under no circumstances may the amounts be
reduced.
Art. 12. The resources and the incomes obtained through this law shall be
the exclusive property of the persons included in its provisions and those
having charge of the payment of the annuities and pensions as well as of
the operations authorized by the same. In no case may the funds be used for
other purposes, under the personal liability of the members of the board of
directors, who shall make good any losses with their own property, without
prejudice to any criminal action which may be brought.
Art. 13. All the resources of the fund shall be deposited in the bank re­
ferred to in article 11. After a decision in each case, the funds shall be
invested by the board of directors in national bonds or those which have the
subsidiary guaranty of the nation, paying the highest rate of interest and
provided they are negotiable. Up to 80 per cent of these funds may be used
in mortgage loans to the employees and workers who are beneficiaries of
this law who have been in the service at least 10 years. The loans may not
exceed 5,000 gold pesos (legal tender) or its equivalent in legal currency and
must bear 8 per cent interest per year.
Art. 14 (as amended by Law No. 1076). These loans shall be regulated in
accordance with the following conditions:
(1) The fund may grant loans in varying amounts for a minimum period
of 15 and a maximum of 20 years, in proportion to the value of the property
and the amount of the salary, for the purpose of increasing the number of
private dwellings. The corresponding tables shall be submitted for the ap­
proval of the executive authority. (2) The monthly deductions for the amorti­
zation and interest shall be 1 per cent of the mortgage until the debt is com­
pletely canceled. (3) The deductions for the amortization and interest may

TEXT OF LEGISLATION

15

not exceed 25 per cent of the wages earned, and as regards those receiving
the retirement annuities and pensions, the board of directors of the fund shall
decide each case individually. (4) Loans shall be authorized only to those
workers earning a minimum salary of 1,000 pesos (legal currency) or its
equivalent in gold. (5) The employees who obtain loans from the fund and
leave the service forfeit their right to withdraw the contributions made to
the retirement fund, in the cases specified in article 26 of this law, these con­
tributions being left in the fund as a subsidiary guaranty of the loan granted.
(6) When an employee retires owing the fund, the amount required of him
for the service of the loan shall be deducted each month from his annuity.
(7) The loans shall be made after the property on which the loan is to be
placed has been appraised by one or more experts appointed by the fund. (8)
The expenses of the appraisal, as well as the drawing up and cancellation of
the loan, and other expenses originating out of the sale of the real estate,
shall be paid by the owner. The expenses involved in the searching of title
shall be paid by the fund. (9) Contracts for loans on real property shall be
made in all cases in the capital before a notary public whom the board of
directors appoints and shall be recorded in the respective mortgage register.
The register of the loan will stand until the obligation has been extinguished,
regardless of any provision in the Civil Code pertaining thereto. (10) The
board of directors may demand the cancellation of a loan when any irregu­
larity occurs in obtaining it. (11) When construction loans are involved the
builder shall sign a mortgage note stating that he renounces his preferred
status as regards order of payment. (12) The board of directors is authorized
to grant advance payments for construction, but the last 20 per cent must
be left to guarantee the completion of the construction. (13) The advance
payments for construction shall be made to the owner and builder jointly.
(14) When the construction is not regulated by the contract or when the work
is delayed, the board of directors, after a technical report concerning the
situation, shall take the measures that it considers pertinent to grant an
extension of the period, and other measures conducive to regularizing
the situation. The new periods having elapsed and other resources having
been exhausted, the board of directors may order the mortgaged property to
be auctioned, without prejudice to the liabilities of the mortgagor, the con­
tractor, and the guarantor, if there is one. (15) Differences which arise
Detween the owner and the builder shall be decided definitely by the board of
directors. (16) The loan-service organization shall be in the charge of a
board of directors of the retirement fund, having the power to decide any
question which arises in practice and which is not mentioned in the law.
(17) The chairman of the fund is empowered to authorize the mortgage notes
or, in his place, the directors. (18) If the mortgagors for any reason fail to
pay the interest and amortization for four consecutive months, the board of
directors of the fund, without any judgment, may proceed to sell the mortgaged
property at a public auction after notices have been inserted in two dailies in
the capital for a period of 30 days. (19) If the owner refuses to authorize
the deed of sale in a case similar to that given in the preceding clause,
the board of directors has the power to sign it in favor of the buyer. (20)
The sale having been made and the deed made out in favor of the buyer, the
indebtedness, interest, and expenses shall be liquidated by the proceeds from
the sale, and any surplus shall go to the debtor or his successors named in
the judgment. (21) If within a period of five years the lawful party does not
appear to claim the surplus, the rights to all claims will be extinguished and
the money will go to form a part of the resources of the fund. (22) If it is
not possible to sell a piece of property for the amount of its actual indebted­
ness, the fund will take possession of it and collect the rental until an auction
is held. The amounts obtained as rent shall be applied to the payment of the
services due and to the upkeep of the property. (23) At any time the debtor
may amortize his debt in whole or in part, crediting the interest that is due
until the day of payment. He may also amortize a monthly amount in excess
of that fixed in the loan table, upon the authorization of the board of directors
in each case.
Art. 15 (as amended by Law No. 1076). When the accumulated funds amount
to 3,000,000 pesos (legal currency) or its equivalent in gold, the board of di­
rectors may use up to 30 per cent thereof in the construction of inexpensive
houses for railroad employees and workers, which shall be disposed of under
the conditions fixed in this law or rented, as determined by the board of
directors in each case.

16

LABOR LEGISLATION OF PARAGUAY

Art. 16. Neither the property referred to in this law nor the houses on which
the said loans are made may be attached during the life of the borrower, his
wife, or minor children. They may not be transferred, encumbered, leased, or
ceded without the consent of the board of directors, until the loan is canceled.
Chapter 4.—Retirement annuities
Art. 17. The retirement annuities which this law grants are (a) ordinary,
(ft) disability, and (c) voluntary retirement.
Art. 18. The amount of the retirement annuities shall be calculated on the
basis of the average salary received during the last five years of service.
Art. 19. The ordinary retirement annuity corresponding to the full salary,
calculated in the manner set forth in the preceding article, is granted to the
employee or worker who has had at least 25 years’ service and who is 50 years
of age.
Art. 20 (as amended by Law No. 1076). An employee or worker who wishesto retire and has rendered at least 25 years’ service but who is not 50 years of
age shall have his annuity reduced 20 per cent.
Art. 21 (as amended by Law No. 1076). An employee or worker who has
served more than 10 years and who is at least 50 years of age will receive the
voluntary retirement annuity in the following proportion: The amount of the
retirement annuity shall be calculated on the basis of the average wages re­
ceived during the last five years, and for the tenth, eleventh, twelfth, thirteenth,
and fourteenth years of service, 50, 60, 70, 80, and 90 per cent, respectively,
shall be taken of the average salaries, multiplying this figure by the years of
service and dividing by 25. Beyond 15 years the basis shall be the average
[wages received during the last five years], in full, multiplied by the years o f
service and divided by 25.
An employee or worker who has not reached the age of 50 and who wishes
to retire in accordance with this article shall have his annuity reduced 20 per
cent.
Art. 22 (as amended by Law No. 1076). An employee or worker, regardless
of his age, who after 10 years of service is declared physically or mentally
incapacitated to continue in his employment or in any other suitable to his
usual activity or training will receive the disability annuity in an equal
proportion.
Art. 23 (as amended by Law No. 1076). An employee or worker, regardless
of his age or length of service, who is permanently incapacitated from a cause
arising out of the service shall receive the disability annuity in the same
proportion as fixed in article 21, those not having completed 10 years of service
receiving the minimum. In the cases in this article and in the preceding, 20
per cent shall be added to the retirement annuity of the beneficiaries until the
maximum is reached.
An employee or worker who is granted the retirement annuity in accordance
with this article shall renounce any other action for damages except that for
the expenses of his cure.
A rt. 24. (as amended by Law No. 1076). In no case may the retirement
annuity for disability be granted to one who applies therefor after six months
from leaving the service, except in case of physical or mental inability so to do
before.
Art. 25. Employees or workers who are 50 years of age and wish to retire
but who have less than 10 years’ service shall be entitled to compensation
equal to the sums contributed by them to the resources of the fund, with interest
at the rate of 3 per cent per year. In no case shall interest be calculated
after the date of retirement.
Art. 26 (as amended by Law No. 1076.). Employees and workers who are
dismissed because their services are no longer needed, or for reasons of economy,
shall be entitled to compensation equal to that fixed in the preceding article.
If an employee is dismissed without cause his contributions shall be returned to
him.
The heirs of an employee who has died in the service before reaching the
retirement age shall also be entitled to the amounts contributed by him to the
fund.
Art. 27. Workers who have been dismissed because of strike agitation caa
not be deprived of their right to the return of their contributions or to retirement'annuities in the cases granted by the law.

TEXT OF LEGISLATION

17

Art. 28. The right to receive the retirement annuity granted by this law
shall be outlawed after four years from the date of retirement or separation
from the service.
Art. 29 (as amended by Law No. 1076). In computing the length of service
for the purposes of retirement, the actual services rendered shall be taken into
account, even though not continuous. When the remuneration for work has been
totally or partially by day wages, one year of service shall be computed for
every 300 days of actual work; and if it has been by the hour, the number of
hours must be divided by eight to establish the number of days of actual work.
Art. 30. In the total period of seniority, any fraction of a year exceeding
six months shall be computed as one entire year.
Art. 31 (as amended by Law No. 1076). During the first two years following
the granting of a disability annuity it shall be considered as temporary and
subject to revision, up to a maximum of twice a year, as the board of directors
of the fund may order; after that time the annuity shall be considered as final.
Art. 32. No retirement annuity for disability shall be granted without a
previous report from the National Department of Health, and from a physician
representing the board of directors and another (the interested party if he so
desires), regarding the causes of the alleged disability. Aside from this, the
board of directors shall order any investigations it may deem necessary.
Art. 33. When a retired employee returns to the railroad service he shall
cease to receive the retirement annuity and receive only the wages in the new
position. On abandoning the latter, he shall again receive the retirement an­
nuity without being able to make any demand for an increase therein. There­
fore, as to the new position, the contributions provided for in this law shall
not be demanded of him.
A worker retired for disability, whose services are used in other work, shall
receive, besides the wages, that fraction of the annuity for disability granted
by the board of directors of the fund which corresponds to the diminution
suffered in his capacity for work. If he has served a sufficient number of
years to obtain the ordinary retirement annuity it shall be granted, based on
the salary of his new work plus the fraction of the annuity for the disability
which he has sustained.
Art. 34. Retirement annuities, return of contributions, and other benefits ac­
corded by this law shall be granted by the board of directors of the fund, to
which application must be made.
Retirement annuities when granted shall be paid from the day on which the
interested party leaves the service, provided it was applied for within six
months after he retired. If it was applied for after that time, the retirement
annuity shall be paid from the date of application. In case of dissent by the
Interested party, the decision of the board of directors shall be appealable by
the same within 30 days after official notification thereof, in order that the
Supreme Court (Superior Tribunal de Justicia), hearing the appellant and the
representative of the fund, may render a decision, without further recourse,
based on certified copies of the administrative papers and any other data which
it may request for its better information.
Art. 35. No retirement annuity may exceed 150 gold pesos or its equivalent
in money of legal currency.
Art. 36. Cases of dereliction and other circumstances which affect or restrict
the rights granted by this law must be recorded in the proceedings in accord­
ance with the regulations that the board of directors shall issue, with the
approval of the executive authority.
A rt. 37. The retirement annuity is for life and the right to receive it is lost
only for the causes expressed in this law. The annuitant shall forfeit all
right to the retirement annuity if he settles in a foreign country without obtain­
ing previous authorization from the board of directors of the fund.
Art. 38. Commutation or pardon in cases of conviction for misdemeanors or
crimes which cause one to lose the rights granted by this law shall not restore
the said rights.
Art. 39. Employees or workers having no family to support who have com­
plied with the conditions entitling them to the right to retirement annuities
and who before receiving them were dismissed for incompetency in the per­
formance of their duties, or for serious misdemeanors, or for having been
•convicted of a crime carrying a prison or penitentiary penalty, shall not be
granted an annuity, but the amount of the deductions from their wages shall
be returned to them, provided there is no occasion for applying it to civil
indemnification for the damage done.

18

LABOR LEGISLATION OP PARAGUAY

In case there is a family to support, the amount of the deductions from his
wages shall not be returned to the convicted party, but the persons having a
right to them under this law shall receive the pension corresponding to the
retirement annuity forfeited.
Art. 40. If the one claiming retirement is indicted for causes involving the
loss of the rights granted by this law, he shall not receive the annuity until
the charges against him are cleared. Meanwhile the annuity shall be deposited
in the bank, and if he is declared guilty action shall be taken in the manner
established in article 39, depending upon whether or not he has a family to
support.
Chapter 5.—Pensions
Art. 41. In cases in which, under this law, a right to a retirement annuity
exists and the death of the employee or worker occurs, the following shall have
the right to apply for a pension in the proportion and on the conditions speci­
fied in this chapter: The widow, the invalid widower, the children, or in their
absence the parents of the deceased.
If the deceased had received his retirement annuity, the persons enumerated
in the preceding paragraph shall have a right to pension under the conditions
specified in the following articles without other formality than that of proving
their identity, showing the existence of the retirement annuity under this law,
and observing the requirements thereof.
A rt. 42. In like manner the aforementioned persons shall have a right to
pension if the deceased died in the performance of his duty and had been in
the service over 10 years. It shall be understood that the annuity, to which
the deceased would have had a right, is the retirement annuity for disability.
Art. 43. The pension for the persons mentioned in the foregoing article shall
be effective from the day of the death of the deceased and shall be granted in
the order and proportion decreed in the general laws dealing with inheritance.
The pension shall be applied for within six months after the death, but if
it is not, the provisions of article 34 will apply.
A rt. 44. The amount of the pension shall be equivalent to 50 per cent of the
full retirement annuity which the deceased was receiving or had a right to
receive.
Art. 45. In case of the death of any of the beneficiaries of the pension, their
share shall accrue to’ the survivors included in this law.
Art. 46. If the wife of the employee, left a widow, has been divorced for her
fault or has been actually separated without desire to be reconciled, she shall
have no right to pension, and the latter shall pass to the persons who under
this law have a right thereto.
A rt. 47. If, on the death of the employee, there survive orphan children of
different marriages, the pension shall be distributed in the proportion corre­
sponding to the same and shall be paid to their respective legal representatives.
Art. 48. The pension is for life, and the right to receive it is lost only for
the causes fixed in this law for the loss of the retirement annuity.
Art. 49. Two or more pensions shall not be paid to the same person. The
party concerned must choose the one which suits him, and after the choice is
made the right to the other is extinguished.
Art. 50. The pensions shall be granted by the board of directors of the fund,
to which application therefor must be made, accompanied by the necessary
proof. The decisions that are handed down may be appealed in the same
manner as those regarding annuities.
Art. 51. The right to the pension is extinguished: (1) For the widow,
widower, or mother when he or she remarries; (2) for the sons, when they
become 18 years of age; (3) for the single daughters, when they marry or
oecome of age; (4) in general, for dissolute life or vagrancy, for having
committed an offense which merits a penitent ary sentence or for settling in
a foreign country without previous permission of the board of directors of the
fund.
Chapter 6.—Special provisions
Art. 52. Employees and workers having a right to retirement annuity or
pension, but who, for any reason have not contributed to the resources of the
fund, shall suffer a deduction of 10 per cent in their retirement annuities and
pensions until the sums are completed corresponding to the salaries received
during the last 25 years of service. As regards the extra annuities, the de­

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duction shall be made to complete the 25 years, computing the salaries on the
average salary received during the last five years of service.
Art. 53. Retirement annuities and pensions may not be attached and are
inalienable. Any sale, cession, or setting up of rights, which becomes a charge
thereon and which impedes the free disposal of the same by the holder of the
title, shall be null.
Art. 54. Railway enterprises shall be required to furnish the board of direc­
tors of the fund all information it may request concerning the personnel and to
permit any verification it may deem necessary, under warning and penalty of
a fine varying from 500 to 2,000 pesos (legal currency).
Art. 55. The chairman of the board of directors shall have sufficient authority
to institute, before the executive authority or the courts of justice, the proper
actions to make effective the obligations and penalties of this law.
The resolutions of the board of directors, entered in the book of minutes and
approved, constitute a public document.
Art. 56 (as amended by law No. 1076). The railroad employees’ retirement
annuity and pension fund shall be exempt from any national or municipal tax
effective at present or in the future.
Art. 57. The granting of benefits under this law shall commence three months
after its promulgation.
Art. 58. The board of directors of the fund must compute in every case
the services rendered by the employees or workers before the enactment of
this law.
Art. 59 (as amended by Law No. 1076). The length of service shall not be
computed nor shall any deductions be made from [the wages of] employees
or workers under 18 years of age who enter the service after the enactment
of this law.
Art. 60. The fund shall make a census of the employees covered by this law
and a complete study on acturial bases within the first three years of its oper­
ation, the results of which it shall report to the executive authority proposing
the provisions and modifications it may deem proper to introduce in the
regulatory decree.
Art. 61 (as amended by Law No. 1076). The general auditor of the nation
shall audit, through employees whom he designates, the accounts of the fund
created by this law, at least twice a year, in order to determine the condition
of the books and to report any irregularities that he notes in the running of
the institution.
Art. 62. Retirement annuities and pensions decreed before the date of pro­
mulgation of this law shall be liquidated hereafter in accordance with the
modifications established herein.