Global Employment Solutions & PEO in Uruguay

How Do Omnipresent Global Employment Solutions Work?

Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Uruguay. Traditional methods of establishing global employment and subsidiaries in Uruguay typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services is helping hundreds of organisations onboard new employees in Uruguay in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 

• Your company conducts the hiring and candidate selection process in Uruguay.
• Omnipresent hires the selected candidate through our local professional employment organisation in Uruguay.
• We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Uruguay.
• The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

Payroll & Taxes in Uruguay

Employee Income Taxes:

• 0%: 0-34,090
• 10.0%: 34,091 – 48,700
• 15%: 48,701 – 73,050
• 24%: 73,051 – 146,100
• 25%: 146,101 – 243,500
• 27%: 243,501 – 365,250
• 31%: 365,251 – 560,050
• 36%: 560,051 and above

Payroll Cycle:

Monthly, with a 13 monthly instalment paid in December/June.

Employer Costs in Uruguay

Employer Contributions:

• 5% - Health Insurance
• 0.125% - Labor Re-conversion Fund
• 7.5% - Pension Fund
• 0.025% - Labour Credit Guarantee Fund

Employee Contributions:

• 15% Pension Fund
• 3%-8% Health Insurance
• 0.125% Labor Re-conversion Fund

Working Hours in Uruguay

Typical Working Hours per Week:

The typical work week in Uruguay consists of no more than 44 hours (employees in the trade sector) or 48 (employees in the industry sector) hours per week. 

Overtime Laws:

Overtime laws in Uruguay are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.

Public Holidays & Vacation Time in Uruguay

Standard Public Holidays in Uruguay

• New Year’s Day
• Children’s Day
• Carnival
• Maundy Thursday
• Landing of the 33 Patriots Day
• Labour Day
• Battle of Piedras Day
• Birthday of José Gervasio Artigas and Never Again Day
• Constitution Day
• Independence Day
• Day of the Races
• All Souls’ Day
• Family Day

Vacation Time in Uruguay

After one year of service, employees in Uruguay are entitled to 20 working days of paid leave per year. During the first year of employment, employees accumulate the right to take holiday into the following year. For every four years of work with the same employer, employees are entitled to one additional working day of holiday per year, capped at 25 working days in total.

Types of Leave in Uruguay

Sick Leave:

Employees in Uruguay are entitled to 12 months sick leave.  In special circumstances this can further be extended to 24 months. 

The first 3 days of sick leave are  paid in full by the employer. From the 4th day onward the employee is paid 70% of their wages by the institute of Social Security (BPS).

Maternity Leave:

Maternity leave in Uruguay consists of 6 weeks leave before birth and 8 weeks leave after birth paid by the BPS . 

Paternity Leave:

Paternity leave consists of 13 days of leave from the day of childbirth. The employer pays the first three days, and the next ten days are paid by the BPS.

Unpaid Childcare Leave:

Newborn care allows the mother or the father to work part time for the first 6 months after the birth, to take care of the newborn child.

Other Types of Leave:

• Marriage
• Bereavement
• Studies
• Disabilities care in the family

Health Insurance & Supplementary Benefits in Uruguay

We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Termination & Severance in Uruguay

Severance:

Severance is typically required in Uruguay, unless in case of redundancy. However, other payments may be required in certain specific circumstances. Please contact us with any questions.

Notice of Termination:

Employers have no obligation of giving notice to the employee regarding the relationship termination.

Employers have a period of 10 days to comply with the payment of the severance and/or salaries that were overdue for payment (otherwise a fine of 10% is automatically applied).

Unprotected and Protected Termination:

Uruguay law protects employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Uruguay to reach out to us directly with questions.

Protected Classes of Employees:

Laws around employees who have specific termination protections, or classes of employees who have protected characteristics relevant to discrimination are highly complex and there can be a number of situation-specific variables. If you have questions in this area, please reach out to us directly to discuss.