COUNTRY

Employment contracts in Uruguay may be either verbal or written. It is recommended to execute an employment contract in writing. Many employment relationships also are governed by collective agreements.

In Uruguay, standard working hours for the industrial sector are fixed at 48 hours per week, eight hours a day over six days. In the commercial sector, the limit is 44 hours a week and eight hours a day. Overtime hours generally are paid at 100% over the standard wage on regular days and 150% over the standard wage on non-working days such as holidays and Sundays. Overtime is limited to eight hours a week.

Employees receive up to one year of leave for illness in Uruguay. Eligible employees receive benefits through Uruguay’s social security system, Banco de Previsión Social (BPS).

Female employees receive 14 weeks of paid maternity leave in Uruguay. Up to six weeks can be taken before birth and the remaining eight weeks taken after birth. Fathers receive 13 days of paid paternity leave in Uruguay.

Employees are entitled to a 13th-month salary bonus in Uruguay, which must be paid in two parts distributed in June and December.

Employees in Uruguay are entitled to paid vacation leave of at least 20 days after one year of employment and receive an extra day of vacation leave after every four years of service.

In Uruguay, the public holidays are:

• New Year's Day

• Labor Day / May Day

• Constitution Day

• Independence Day

• Christmas Day

The National Integrated Health System includes both the private sector and the public sector. Public health services in Uruguay are managed by the Administración de los Servicios de Salud del Estado (ASSE) or State Health Services Administration. In addition to public health services, health services are also provided by Las Instituciones de Asistencia Médica Colectiva (IAMC) or Collective Medical Care Institutions, which are private organizations.

The rights and responsibilities for terminating an employment contract in Uruguay are generally detailed as part of an individual or collective agreement. This includes the process for dismissing an employee and any requisite notice period. Employers are not required to pay severance if the employee breaches the employment contract. Severance is one month of the employee’s salary per year of service up to six months.