Global Employment Law Guide |
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Uruguay |
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(Latin America/Caribbean)
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 category is employee or worker (there are no differences between them). |
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 to 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 within a private level, between the employee and the employer, with no obligation whatsoever as to the registration or entry before the Ministry of Labor. There is not even a legal requirement for them to be set forth in writing, however, it is strongly recommended to do so. |
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 reduce 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 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 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 can 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. 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 month-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 of 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. 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? | Yes, there are statutory rights for said situations. In the last 12 months, minor changes have been introduced regarding paid leave for parents of children with disabilities and leave for adoption. |
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 his 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 employee has no kind of restrictions. |
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 as 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. |
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 make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp... | In Uruguay the COVID-19 vaccine is voluntary. Each person can decide to vaccinate or not. Scholars have different opinions in regard to the question. We understand that employers can make vaccines mandatory in those sectors of activity in which it may demonstrate that employees not vaccinated are or represent a special risk for the other employees, clients or third parties. An employer can terminate employees that do not want to get the vaccine. Part of our doctrine, in the opinion that we do not share, understand that such termination may be considered as an abusive dismissal. |
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 that refuse the order. Obviously, unless there is a health reason. |
Global Employment Law Guide
Uruguay
(Latin America/Caribbean) Firm Guyer & RegulesContributors Leonardo Slinger
Updated 16 Apr 2021Under labor law, the only category is 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 to 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.
It is widely admitted, and for all labor categories that prior to the employee's final incorporation to the company, a probation contract should be entered into. It should be noted that probation contracts are not presumed.
Labor contracts are entered into within a private level, between the employee and the employer, with no obligation whatsoever as to the registration or entry before the Ministry of Labor. There is not even a legal requirement for them to be set forth in writing, however, it is strongly recommended to do so.
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 reduce his benefits or job position.
If an employee proves that such transfer causes harm, he will be entitled to claim severance compensation.
No, Uruguay does not have statutory rights for employees on change of control of an employer.
In principle, an employer cannot unilaterally change the terms of employment. Unilateral abusive changes can 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 month-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 of 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.
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.
Yes, there are statutory rights for said situations.
In the last 12 months, minor changes have been introduced regarding paid leave for parents of children with disabilities and leave for adoption.
No special regulation, but scholars accept them if an employee gives his 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 employee has no kind of restrictions.
No. And if the employer dismisses the employee it will be considered as 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.
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.
In Uruguay the COVID-19 vaccine is voluntary. Each person can decide to vaccinate or not. Scholars have different opinions in regard to the question. We understand that employers can make vaccines mandatory in those sectors of activity in which it may demonstrate that employees not vaccinated are or represent a special risk for the other employees, clients or third parties.
An employer can terminate employees that do not want to get the vaccine. Part of our doctrine, in the opinion that we do not share, understand that such termination may be considered as an abusive dismissal.
Yes, employers can require employees to return to work. And can terminate employees that refuse the order. Obviously, unless there is a health reason.