What you need to know for employing in Uruguay

Employee contributions include Pension Fund, Health Insurance, and Labor Re-conversion Fund. This list is non-exhaustive, please contact us for further information.

Employees cannot work more than 44 (regarding trading sector)/48 (regarding industry sector) hours per week, 8 hours per day (6 days a week with 1 break day, Sunday). Overtime is capped and compensated.

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.

After 1 year service: 20 days paid annual leave per year.

During first year of employment, employees accumulate the right to take holiday in the following year.

For every 4 years of work with the same employer employees are entitled to 1 additional holiday day (capped at 25 days). The company has to give this benefit when the employee has been working at the company for 5 years.

All employees are entitled to paid holidays i.e. in addition to their right to 20 days of paid holiday leave, they must be given an additional payment, equivalent to 100% of their take home pay for those 20 days.

Severance is typically required in Uruguay, unless in case of redundancy. However, other payments may be required in certain specific circumstances.

Termination is simple in Uruguay but requires severance payment for termination without cause. There are additional procedural requirements for termination with cause.