Uruguay
Uruguay, known for its beautiful beaches, rich culture, and stable economy, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Uruguay, offering comprehensive solutions for building your contingent workforce.
Fixed-term contracts are permitted in Uruguay without limit. However, they may not be renewed. If renewed, it will be deemed an undefined period contract. If a fixed-term contract is terminated early, the Worker is owed the salary that would have accrued through the original end date.
Probationary periods are permitted in Uruguay and are typically 90 days. No cause is required to terminate during a probationary period, but a specific formal notice called a telegrama colacionado is required.
Workers in Uruguay recognize approximately five paid public holidays. If work is required on a public holiday, compensation must be paid at 200%.2024:New Year's Day - January 1Three Kings' Day - January 8 Carnival - February 12-13Holy Week - March 28-29Desembarco de los 33 Orientales - April 22Uruguay's Labor Day - May 1Jose G. Artigas Birthday - June 19Constitutional Day - July 18Independence Day - August 26Christmas Day - December 25
Workers are entitled to 20 days of paid vacation per year (more with longer lengths of service) and a vacation bonus (Salario Vacacional). Vacation must be used in the year it is earned. Accrued but unused leave is payable at the conclusion of the employment contract.
Sick leave is payable by social security upon presentation of a medical certificate. Workers are entitled to as much time as they need to recover.
A standard workweek is 8 hours per day and 40 to 48 hours per week. Night work is payable at 120%.
Overtime is payable at 200% or 250% if the overtime is worked on a weekend or holiday. There are no exceptions from overtime. Depending upon the activity, overtime is capped on a daily and weekly basis.
Workers in Uruguay are entitled to a 13th month salary payable in June and December.
Termination requires severance. Workers paid a monthly salary are entitled to one month's wages for each year of service capped at six months. Workers paid by the day or hour are entitled to severance after 100 days worked, which is generally equal to 25 days of wages for each year where at least 240 days were worked capped at 150 days of severance pay. Alternative calculations are used for Workers that do not meet that requirement.
Workers are not required to provide notice to resign.
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