The Cuban government has abolished the mandatory requirement for state employment agencies to mediate in the hiring process for workers in foreign capital companies. This significant change ends a practice that has been in place for over three decades, restricting these companies from directly hiring a majority of their workforce.
On Thursday, the Ministry of Labor and Social Security (MTSS) released Resolution 56/2026, introducing a new labor framework for foreign investment modalities in Cuba, effectively repealing the previously enforced Resolution 33/2020.
Signed on August 31, 2026, the new regulation was published in the Official Gazette of the Republic of Cuba No. 73 Ordinary of 2026, spanning pages 28 to 33. It is part of a comprehensive package of eight interrelated regulations concerning foreign investment.
Significant Shift in Employment Practices
The most notable alteration brought by this resolution is the removal of the compulsory state intermediation in hiring personnel for companies with foreign capital.
Previously, Cuban workers involved in foreign investment projects were required to be hired solely through state-authorized employment entities by the MTSS. This system has been in place since the mid-1990s and was upheld by the Foreign Investment Law 118 of 2014 and Resolution 33/2020.
The new regulation offers greater flexibility by allowing workers to be hired directly by foreign investment entities or alternatively through authorized employment agencies.
Direct Hiring or Through Agencies
According to the resolution, workers providing services in foreign investment modalities can be hired directly by these entities or through authorized employment agencies, in accordance with current legal labor provisions.
When a foreign company chooses direct hiring, it assumes the role of employer and must adhere to the prevailing labor and social security legislation. Alternatively, if an employment agency is utilized, both parties must formalize a written Labor Supply Contract, detailing the parties involved, the contract's purpose, the supply duration, and the payment for the provided services.
Responsibilities and Compensation
The resolution delineates the duties of each party within this mediation framework. The foreign company is responsible for paying the agreed price to the employment agency, managing and supervising the work, ensuring tools and safety conditions, and training staff for technical or technological changes.
The employment agency is tasked with selecting, hiring, and supplying personnel, paying the worker's salary, ensuring labor rights and social security, and complying with occupational safety and health legislation.
Regarding compensation, the regulation states it follows general labor legislation, with salary treatment prescribed for work interruptions.
Regulations for Foreign Workers
The resolution also addresses the status of foreign workers. Those with temporary resident, real estate resident, or humanitarian resident migration status and occupying managerial or highly specialized technical positions must have a Work Permit, except in expressly authorized exceptions.
This regulation aligns with the 176 Economic and Social Transformations approved by the Cuban government in 2026 and the State Council's Decree Law 128/2026, dated July 28, 2026, which amended key articles of the Foreign Investment Law 118 of 2014.
The resolution's considerations acknowledge that the approved transformations "aim to remove the mandatory use of employment entities for selecting and hiring personnel in foreign investment, necessitating changes to this requirement, and consequently repealing Resolution 33/2020."
Understanding Cuba's New Labor Regulations for Foreign Investment
What is the main change introduced by Cuba's Resolution 56/2026?
The primary change is the elimination of mandatory state intermediation in hiring workers for companies with foreign capital, allowing for direct hiring or through authorized agencies.
How does the resolution affect foreign companies operating in Cuba?
Foreign companies now have the option to directly hire workers or continue using authorized employment agencies, adhering to updated legal labor provisions.
Are there any requirements for foreign workers under the new regulation?
Yes, foreign workers with specific migration statuses and in managerial or specialized positions must obtain a Work Permit, unless exceptions are specifically authorized.