Informal Labor and Human Rights: The Failure of Peru’s Youth Employment Regime (2014)

The Youth Labor Law enacted in Peru in December 2014 aimed to address the high rates of youth unemployment and the large informal labour sector. The law introduced a set of labour rights and incentives for employers, including reduced vacation time, health insurance, and pension access for young workers aged 18-24, as well as tax breaks and decreased social healthcare coverage for employers. Despite its good intentions, the law sparked widespread criticism due to its unequal treatment of young workers, who would receive lower wages and fewer benefits compared to older employees doing the same job. While the government strongly supported the law, labour experts, civil society groups, and international organizations like the International Labor Organization raised concerns about its fairness and long-term implications. Public protests, mainly led by youth and labour unions, grew in opposition to the law, leading to its eventual repeal by Congress in January 2015. The law’s rapid passage and the lack of consultation with key stakeholders contributed to public distrust and resentment, underscoring the complex challenges of labour reform in Peru.