Global Employment Law Guide |
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Uruguay |
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(Latin America)
Firm
Guyer & Regules
Contributors
Leonardo Slinger |
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| What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)? | Under labor law, the only categories are employee or worker (there are no differences between them). If the person is hired as an independent contractor, the categories will be self-employed individuals, consultants or advisors. |
| Are there different types of employment contracts (for example, fixed-term, indefinite)? | Yes, fixed-term and indefinite. Unless otherwise specified in the contract, the general rule for employment contracts is indefinite duration. Therefore, despite not being a legal requirement of formality, contracts for a specified term should be entered into in writing. For the hiring for a specified term to be valid, there should be a justifiable ground or cause. The cause must be directly linked to the duration of the specific job. It is widely admitted for all labor categories that prior to the employee's final incorporation into the company, a probation contract can be entered into. It should be noted that probation contracts are not presumed, and should also be set forth in writing. Courts understand that 90 days is generally the maximum admitted probation period. |
| What requirements need to be met in order for an employment contract to be valid? | Labor contracts are entered into at a private level, between the employee and the employer, with no obligation whatsoever as to the registration or entry before the Ministry of Labor. While not legally required, written contracts are strongly recommended. However, certain exceptions exist where a contract must be in writing to be legally valid. For example, telework agreements must be formalized in a written document. This is required not only to formalize the employee's consent but also to clearly define critical conditions such as the provision of equipment and the designated place of work. |
| Are part-time employees afforded the same rights as full-time employees? | Yes, unless a right is directly linked to the hours worked (for example, workers who are employed for less than 4 hours have no right to a paid break during their workday). |
| Can employment contracts be assigned? | Yes. A new employer will have the same obligations regarding employees as the former one. An employee can oppose the assignment of his contract if the same causes harm or reduces his benefits or job position. |
| What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern? | If an employee proves that such a transfer causes harm, he will be entitled to claim severance compensation. |
| Do you have statutory rights for employees on change of control of an employer? If so, please give the statute. | No, Uruguay does not have statutory rights for employees on the change of control of an employer. |
| In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee? | In principle, an employer cannot unilaterally change the terms of employment. Unilateral abusive changes may entitle an employee to claim constructive dismissal. |
| Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights? | Yes. An employer can terminate a labor contract at any time, paying severance compensation. |
| Are there remedies for dismissal without cause or wrongful termination? | Only for wrongful termination, as the employer is not actually required to state a cause for dismissal. The principle in terms of dismissal of monthly paid employees is the nonexistence of a waiting period. That is, the employee, as from the very first day of work, is entitled to receive dismissal compensation. There is no rule imposing the obligation of notice of discharge. This compensation is equivalent to one month of salary for every year or fraction thereof worked, with a maximum limit of six months' pay. It should be noted that the term monthly payment includes not only the salary but also any salary remuneration earned by the employee (overtime, commissions, a portion of holiday salary, accrued leave, 13th salary, etc.). The monthly paid employees do not have a waiting period to be entitled to dismissal compensation; that is, the fraction can be from one day to eleven months indistinctly. Daily paid employees are entitled to severance compensation after 100 days of actual work. Severance compensation is equivalent to the salary of 25 days for every year in which they worked 240 days or more. If they didn't work 240 days, they will be entitled to 2 days of salary for every 25 days worked. The maximum severance for these workers is the equivalent of 150 days of salary. |
| Are there protections for whistleblowers? | There is no specific regulation. General rules apply. Termination as a reprisal for whistleblowing is generally considered abusive by Courts; however, the employee has the burden of proving the link between them. |
| Do employees have a right to privacy? If so, what are the remedies for a breach? | Yes, privacy is protected by our Constitution. A breach of privacy will give the employee the right to claim compensation for damage caused. |
| Are employees afforded any anti-discrimination protection? | Yes. Employees can report discrimination incidents to the Ministry of Labor so that inspections and inquiries are conducted, and penalties are imposed on the company. Employees can also claim damages derived from discrimination before labor courts. |
| Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits? | Annual vacation: Employees are entitled to at least 20 working days per year, plus one extra day for every 4 years of service after 5 years. Maternity leave: Minimum 14 weeks (6 before the expected birth, 8 after), extendable to 18 weeks in specified cases. It is mandatory and irrenunciable, and paid via the social security maternity subsidy. Paternity leave: Employees have a special paid leave (at least the day of birth plus the two following days) and, in addition, social security pays up to 17 days under a subsidy. Sickness leave: Employees are covered by the national sickness insurance and receive a social‑security sickness subsidy under the health insurance regime. |
| Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity? | No special regulation, but scholars accept them if an employee gives their consent and receives reasonable compensation. It has to be analyzed on a case-by-case basis, considering the employee's job position and the sector of activity of the employer. Bear in mind that the principle is that once a labor relationship is terminated, the employee has no kind of restrictions unless he receives a payment. |
| Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant? | No. And if the employer dismisses the employee, it will be considered an abusive dismissal. |
| Does your jurisdiction require contributions to a pension or retirement scheme? | Yes, Uruguay requires contributions to a pension or retirement scheme. |
| Are certain benefits mandated by your jurisdiction? | Yes. The most relevant are annual paid vacations, vacation bonuses and 13th salary. |
| Is it permitted to have a mandatory retirement age in your jurisdiction? | Yes, it is permitted to have a mandatory retirement age if it is justified. But the employee who reaches that age, if he/she does not resign, should be dismissed and paid compensation. |
| Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age? | No, it is not possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age. |
| Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment? | Yes, employers can require employees to return to work and can terminate employees who refuse the order. Obviously, unless there is a health reason. |
Global Employment Law Guide
Under labor law, the only categories are employee or worker (there are no differences between them). If the person is hired as an independent contractor, the categories will be self-employed individuals, consultants or advisors.
Yes, fixed-term and indefinite.
Unless otherwise specified in the contract, the general rule for employment contracts is indefinite duration. Therefore, despite not being a legal requirement of formality, contracts for a specified term should be entered into in writing. For the hiring for a specified term to be valid, there should be a justifiable ground or cause. The cause must be directly linked to the duration of the specific job.
It is widely admitted for all labor categories that prior to the employee's final incorporation into the company, a probation contract can be entered into. It should be noted that probation contracts are not presumed, and should also be set forth in writing. Courts understand that 90 days is generally the maximum admitted probation period.
Labor contracts are entered into at a private level, between the employee and the employer, with no obligation whatsoever as to the registration or entry before the Ministry of Labor. While not legally required, written contracts are strongly recommended.
However, certain exceptions exist where a contract must be in writing to be legally valid. For example, telework agreements must be formalized in a written document. This is required not only to formalize the employee's consent but also to clearly define critical conditions such as the provision of equipment and the designated place of work.
Yes, unless a right is directly linked to the hours worked (for example, workers who are employed for less than 4 hours have no right to a paid break during their workday).
Yes. A new employer will have the same obligations regarding employees as the former one. An employee can oppose the assignment of his contract if the same causes harm or reduces his benefits or job position.
If an employee proves that such a transfer causes harm, he will be entitled to claim severance compensation.
No, Uruguay does not have statutory rights for employees on the change of control of an employer.
In principle, an employer cannot unilaterally change the terms of employment. Unilateral abusive changes may entitle an employee to claim constructive dismissal.
Yes. An employer can terminate a labor contract at any time, paying severance compensation.
Only for wrongful termination, as the employer is not actually required to state a cause for dismissal.
The principle in terms of dismissal of monthly paid employees is the nonexistence of a waiting period. That is, the employee, as from the very first day of work, is entitled to receive dismissal compensation. There is no rule imposing the obligation of notice of discharge.
When the labor relationship is terminated by dismissal, the employee has the automatic right to receive compensation, except for the case where there has been a dismissal for cause (which in our system only exists in cases of gross misconduct).
This compensation is equivalent to one month of salary for every year or fraction thereof worked, with a maximum limit of six months' pay. It should be noted that the term monthly payment includes not only the salary but also any salary remuneration earned by the employee (overtime, commissions, a portion of holiday salary, accrued leave, 13th salary, etc.).
The monthly paid employees do not have a waiting period to be entitled to dismissal compensation; that is, the fraction can be from one day to eleven months indistinctly.
Daily paid employees are entitled to severance compensation after 100 days of actual work. Severance compensation is equivalent to the salary of 25 days for every year in which they worked 240 days or more. If they didn't work 240 days, they will be entitled to 2 days of salary for every 25 days worked. The maximum severance for these workers is the equivalent of 150 days of salary.
There is no specific regulation. General rules apply. Termination as a reprisal for whistleblowing is generally considered abusive by Courts; however, the employee has the burden of proving the link between them.
Yes, privacy is protected by our Constitution.
A breach of privacy will give the employee the right to claim compensation for damage caused.
Yes. Employees can report discrimination incidents to the Ministry of Labor so that inspections and inquiries are conducted, and penalties are imposed on the company. Employees can also claim damages derived from discrimination before labor courts.
Annual vacation: Employees are entitled to at least 20 working days per year, plus one extra day for every 4 years of service after 5 years.
Maternity leave: Minimum 14 weeks (6 before the expected birth, 8 after), extendable to 18 weeks in specified cases. It is mandatory and irrenunciable, and paid via the social security maternity subsidy.
Paternity leave: Employees have a special paid leave (at least the day of birth plus the two following days) and, in addition, social security pays up to 17 days under a subsidy.
Sickness leave: Employees are covered by the national sickness insurance and receive a social‑security sickness subsidy under the health insurance regime.
No special regulation, but scholars accept them if an employee gives their consent and receives reasonable compensation.
It has to be analyzed on a case-by-case basis, considering the employee's job position and the sector of activity of the employer.
Bear in mind that the principle is that once a labor relationship is terminated, the employee has no kind of restrictions unless he receives a payment.
No. And if the employer dismisses the employee, it will be considered an abusive dismissal.
Yes, Uruguay requires contributions to a pension or retirement scheme.
Yes. The most relevant are annual paid vacations, vacation bonuses and 13th salary.
Yes, it is permitted to have a mandatory retirement age if it is justified. But the employee who reaches that age, if he/she does not resign, should be dismissed and paid compensation.
No, it is not possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age.
Yes, employers can require employees to return to work and can terminate employees who refuse the order. Obviously, unless there is a health reason.