It has been now four months since El Salvador decided to declare a national quarantine and confine its citizens to their respective homes in order to prevent the spread of the virus as much as possible. Today, the situation in the region is different and, as in many other countries around the world, El Salvador is beginning to see “the light at the end of the tunnel” in terms of the health. However, the government of El Salvador now faces many challenges in order to manage the country’s return to “normality” in the safest and quickest way. A normality that will be different and will be marked by the economic and social impact that the Covid-19 has had on the markets and which, without a doubt, are the focus of government in terms of legislation and rules. The following are some of the novelties that El Salvador has recently implemented with the intention of guaranteeing the security of its citizens and minimizing the consequences of the pandemic.
Extension of judicial and administrative terms. On June 10, 2020, the Legislative Assembly voted to extend the effects of Legislative Decree 649, which contains the suspension of the procedural terms and deadlines in administrative and judicial procedures, whatever the matter and the instance in which they are found, extending its validity from June 11 to 19, pending approval by the Executive Branch.
Special Emergency Law for the Pandemic COVID-19, Comprehensive Care for Life, Health and Reopening of the Economy. On June 11, 2020, the Legislative Assembly approved this law in order to establish measures to protect the health of Salvadorans, instruct the implementation of other forms of work, provide job stability, and recognize the emergency by COVID-19 throughout the territory of the Republic, for fifteen calendar days from the effective date of the decree, during which time direct purchases are available from institutions linked to fighting the pandemic. Also, the regulations establish sanitary measures that must be complied with when resuming work in four phases. The foregoing is pending approval by the Executive Branch.
Transitional Law for the Regulation of Company and Premises Registration by the Pandemic of COVID-19. On June 11, 2020, the Legislative Assembly approved the Transitory Law for the Regulation of Company Registration and Registration of Premises before the COVID-19 Pandemic, through which the term to renew registrations and premises of companies without penalty and interest is extended to December. The benefit of regulating registrations, filing them for the first time, or renewing them, will apply to individuals and companies who to date do not have their permits in force. The foregoing is pending approval by the Executive Branch.
Amendments to the Law of the Integrated National Health System. On June 11, 2020, the Legislative Assembly amended the Law of the Integrated National Health System to guarantee that in cases of sanitary emergencies, epidemics, or pandemics, top-quality protection equipment is acquired in a flexible and timely manner to enable distribution to all health personnel in the country.
Executive Decree 31. On June 13, 2020, the Executive Branch, through the Minister of Health, announced the gradual reopening of the economy from June 16, 2020, by planning 5 gradual phases by sector and economic activity. The measures are expected to end by August 21, 2020, with the full resumption of economic, social, and cultural activities.
With these developments, El Salvador seeks to adapt to the situation caused by COVID-19 and to respond to the challenges, not only of Salvadorans but also of the world, after the pandemic. In Auxadi we are experts in providing value added services in accounting, tax compliance and international payroll management. We work every day to keep up to date with all legislative developments at an international level, which is crucial in extraordinary and uncertain times such as the ones we are experiencing. If you need to expand on what is set out here, please do not hesitate to contact us.