The Cuban Council of State has sanctioned Decree-Law 137 of 2026, enabling foreign commercial entities established in Cuba to directly hire their workforce without the mandatory need for state-run employment intermediaries.
This regulation was officially released in the Official Gazette No. 82, 2026, alongside its governing rules under Resolution 62/2026 issued by the Ministry of Labor and Social Security on September 22.
This new law repeals Decree-Law 384 of 2019, which had previously mandated that Cuban employees working for foreign entities be engaged solely through state-sanctioned agencies authorized by the Ministry of Labor and Social Security (MTSS).
However, the reform is not comprehensive. Diplomatic missions, consulates, international organizations, press agencies, international schools, and foreign officials still must hire through these state agencies.
Only foreign commercial representations, as outlined in Article 1, clause h) of the decree, now have the choice to hire directly or continue using authorized employment entities.
When a commercial representation opts for direct hiring, it assumes the role of the employer and must adhere to all current labor and social security laws in Cuba.
If they choose to use an employment entity, both parties are required to sign a Workforce Supply Contract, detailing the purpose, terms, trial period duration, and payment for the service.
Resolution 62/2026 also dictates that worker compensation must not fall below the wage scale set by current legislation.
Another significant provision mandates that at least one Cuban worker must be included for every foreign worker in the service, applicable whether an employment entity is involved or the representation hires directly.
Self-employed individuals are excluded from this framework; they can sell their products and services to foreign entities through economic contracts without needing an employment contract.
This shift aligns with the 176 Economic and Social Transformations presented by Prime Minister Manuel Marrero Cruz to the National Assembly in June 2026, which explicitly sought to eliminate the compulsory use of state employment entities for selecting and hiring personnel in foreign investments, branches, and representation offices.
The same principle was applied last September for foreign-capital enterprises when the MTSS released Resolution 56/2026 in Gazette No. 73, removing the mandatory state mediation in that sector and repealing Resolution 33/2020.
The system now being partially dismantled originated in the 1990s: Cuban workers contracted with a state entity—not directly with the foreign company or representation—which collected payments in foreign currency while compensating workers in the national currency, allowing the state to pocket the difference.
Frequently Asked Questions on Cuba's New Hiring Regulations
What changes does Decree-Law 137 introduce?
Decree-Law 137 allows foreign commercial representations in Cuba to hire workers directly, bypassing the need for state-run employment intermediaries.
Who is still required to use state employment entities?
Diplomatic missions, consulates, international organizations, press agencies, international schools, and foreign officials must still hire through state agencies.
What is the significance of Resolution 62/2026?
Resolution 62/2026 sets out the regulations for direct hiring, including wage requirements and the necessity of employing at least one Cuban worker for each foreign worker.