The Cuban government has eliminated the mandatory mediation of state employment agencies in the hiring of workers by companies with foreign capital, bringing an end to a mechanism that had been in place for over three decades, which prevented these companies from directly hiring a significant portion of their staff.
The Ministry of Labor and Social Security (MTSS) published this Thursday the , a regulation that establishes the new labor rules applicable to foreign investment modalities in Cuba and repeals Resolution 33/2020, which has been in effect until now in this matter.
The regulation, signed on August 31, 2026, was published in the , pages 28 to 33, as part of a package of eight interrelated regulations on foreign investment.
The most significant change introduced by the resolution is the elimination of mandatory state mediation in the hiring of staff for companies with foreign capital.
Until now, Cuban workers providing services in foreign investment modalities had to be hired exclusively through state employer entities authorized by the MTSS, a scheme that had been in place since the mid-1990s and was maintained by Law 118 on Foreign Investment of 2014 and by Resolution 33/2020 itself.
The new regulation simplifies this framework without completely eliminating it: workers can be hired directly through foreign investment modalities or, alternatively, through authorized employer entities.
According to the text of the resolution, "workers providing services in foreign investment modalities may be hired directly by them or through employer entities authorized by the Ministry of Labor and Social Security, in accordance with current legal provisions regarding labor hiring."
When the foreign company chooses direct hiring, it assumes the role of employer and must comply with the current general legislation regarding labor and social security.
If, on the other hand, an employer entity is involved, both parties must formalize a Workforce Supply Agreement in writing, which must include at least the identification of the parties, the purpose of the contract, the supply period, and the payment for the service rendered.
The resolution outlines the obligations of each party in that mediation framework.
The foreign company must pay the agreed price to the employer, direct and supervise the execution of the work, ensure tools and safety conditions, and train the staff in the face of technical or technological changes.
The employer is responsible for selecting, hiring, and providing the staff, paying the employee’s salary, ensuring their labor rights and social security, and complying with occupational health and safety legislation.
Regarding remuneration, the standard establishes that it is governed by general labor legislation, and in cases of work interruption, the employer applies the salary treatment provided for in that same legislation.
The resolution also regulates the situation of foreign workers: those classified as temporary residents, real estate residents, or humanitarian residents who occupy managerial positions or highly specialized technical roles must have a work permit, except for explicitly authorized exceptions.
The regulation is part of the 176 Economic and Social Transformations approved by the Cuban government in 2026 and the Decree Law 128/2026 of the State Council, dated July 28, 2026, which amended key articles of the Foreign Investment Law 118 of 2014.
The very preambles of the resolution acknowledge that the approved transformations "provide for the elimination of the mandatory use of employer entities to select and hire personnel in foreign investment, making it necessary to amend the rules regarding this obligation, and consequently repeal Resolution 33/2020."
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