March 13, 2024
This study seeks to determine the scope and extent of restrictions on the hiring of foreign nationals under Law No. 21.325 and the National Migration and Foreigners Policy. Through a detailed analysis of migration and labor regulations, along with a review of their implementation, the study shows that—despite apparent contradictions—these regulations have not significantly limited the hiring of foreign workers. Migration legislation has focused on visa approvals without considering their labor market impact, while the Labor Directorate’s broad interpretation of legal exceptions and reduced enforcement have facilitated the integration of foreign workers into the formal labor market, allowing the legal 15% hiring cap to be exceeded.