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If you are dismissed without gross misconduct on your part, you are entitled to severance pay. The general rule is one month's salary for each year worked (or fraction), capped at six months. If you are paid by the day, the calculation is based on the days worked. Day laborers become entitled to severance after 100 days worked.
The base salary for that calculation is not just the fixed monthly wage: it includes the impact of variable items received regularly —overtime, commissions, bonuses, night-work or rest-day premiums—. The average of those items is added to the fixed wage to determine the real base. Ignoring those items is one of the most common errors in settlements.
Pending items at termination are added to severance: proportional year-end bonus (aguinaldo), unused leave and the corresponding vacation pay, and any unpaid wages.
Yes. It is called constructive dismissal: for example, if your employer cut your salary without justification, abusively changed your duties or hours, stopped paying you, or imposed degrading or illegal working conditions, you may consider yourself dismissed and claim the same compensation as if you had been fired directly.
Important: if you resign without legal advice first, you may lose that right. Always consult first, since certain conditions must be met to claim it.
The settlement must be paid within 10 calendar days from the day the employment relationship ends.
If the employer does not pay within that term, a 10% surcharge on the amount owed accrues automatically (art. 29 of Law No. 18.572), plus indexation and interest from the due date. It operates by law: you don't need to take any prior step to be entitled to it.
Law No. 11.577 protects pregnant workers. If the employer is aware of the pregnancy and dismisses her anyway, it must pay the ordinary severance plus a special compensation equal to six months' salary (art. 17). Both are cumulative and calculated on total remuneration, including variable items.
According to majority case law, protection extends to the post-partum period, with a stability period of around 180 days after birth. The key requirement is that the employer was aware of the pregnancy. Protection applies even if the company closes. If you are in this situation, consult immediately.
These are situations with their own rules and different scope:
In any of these situations, consult before acting.
If the employer alleges gross misconduct (notoria mala conducta), in principle it owes no severance nor the accrued year-end bonus. But the burden of proof falls entirely on the employer, and courts require clear, full evidence that leaves no reasonable doubt.
The conduct must be willful, linked to the employment relationship, and serious enough to make continuing the contract unviable; not every breach qualifies. As an additional consequence, a worker dismissed on this ground also loses the right to unemployment insurance. If you were dismissed this way and believe it isn't justified, consult: many dismissals labeled this way do not meet the evidentiary standard courts require.
Working-hour limits depend on the sector:
Beyond the limit applicable to your activity, every hour worked is overtime. Your collective bargaining agreement may set more favorable conditions.
Every hour exceeding your normal working day is overtime and must be paid with a surcharge (Law No. 15.996):
Overtime is of a salary nature and counts toward the year-end bonus, leave and vacation pay. Its impact is also part of the severance base. It is very common for it to be paid incorrectly or left out of the final settlement.
Yes. Night work carries a 20% surcharge when you work more than 5 consecutive hours at night, understood as between 10 p.m. and 6 a.m. (Law No. 19.313). Working on your weekly rest day or on a holiday is also paid with a surcharge. If you see those hours in your records and the surcharge does not appear on your pay slip, it's worth reviewing.
The aguinaldo is an extra annual salary paid in two installments: the first during June and the second before December 20. It equals one twelfth of everything received in cash during the period (six months per installment), including salary, overtime, commissions and other salary items. If it isn't paid, or is calculated leaving items out, you can claim it.
You are entitled to a minimum of 20 paid leave days per year worked. When counting them, Sundays and holidays are not included, but Saturdays are. That minimum increases with seniority (one more day at five years and one more every four years) and may be improved by the collective agreement.
In addition to the wages for those days, you are entitled to vacation pay: an extra sum for better enjoyment of the leave, equal to 100% of the net daily wage for the leave days (net being the gross minus social security contributions and tax). It must be paid before you go on leave. If you aren't given the days due or aren't paid the vacation pay, it is claimable.
Yes. If the relationship ends —by dismissal or resignation— and you have leave days you didn't take, those days become a cash credit, with no deductions. The same applies to proportional vacation pay. Both are part of the final settlement and must be paid within the 10-day term.
Even if you are unregistered, you have exactly the same labor rights as any formal worker: severance, year-end bonus, leave, overtime, vacation pay, etc. The employment relationship can be proven by many means: WhatsApp or email messages, witnesses, bank deposits, photos, informal receipts.
Keep everything you have. The fact that the employer didn't register you does not make you lose rights; on the contrary, it may bring additional penalties for the employer before the MTSS and the BPS.
Non-payment of wages is one of the employer's most serious breaches. You have two paths: claim the unpaid wages with late-payment surcharges, or treat it as constructive dismissal and claim severance as if you had been fired, plus the unpaid wages. Act fast: the sooner you consult, the better you protect your right to collect.
No one has to tolerate mistreatment, harassment or pressure to keep their job. Uruguay distinguishes between different figures.
Sexual harassment: expressly prohibited and penalized by Law No. 18.561. It includes unwanted physical, verbal or written conduct of a sexual nature that affects your job or creates a hostile or humiliating environment. If you suffer it, you have two options:
If the harasser is a coworker, the employer may also be liable if, once aware, it took no measures to stop it.
Mobbing (psychological harassment): systematic harassment, humiliation, isolation or sustained mistreatment over time. Unlike sexual harassment, it has no specific law, but it grounds a claim. Courts require the conduct to be repeated, intentional and to cause verifiable harm —a one-off conflict or work stress is not enough—. If proven, you may treat it as constructive dismissal and claim ordinary severance plus an autonomous moral-damage award, the amount of which the judge sets per case.
In addition, ILO Convention 190, ratified by Uruguay, broadened protection against violence and harassment in the world of work. Most important: document everything (messages, emails, witnesses), don't resign without advice first, and consult before reporting internally. We handle these cases with full confidentiality.
Abusive dismissal is different from ordinary dismissal. The employer may in principle dismiss by paying the scheduled severance, but if in doing so it acts with malice, bad faith or the purpose of harming the worker, the dismissal becomes abusive and generates additional compensation, cumulative with the ordinary one.
The cases most often recognized by case law:
It is applied exceptionally: an unfair dismissal alone is not enough. How much is paid? There is no legal tariff; case law uses between 1 and 3 ordinary severance amounts (some cases reach 5) as a parameter, depending on the severity of the abuse, seniority and salary, cumulative with the ordinary severance. If you believe your dismissal had an improper motive, consult before signing anything.
Don't sign anything you don't understand. Signing a dismissal receipt or a resignation can affect what you can claim later. Take a photo, don't sign on the spot if in doubt, and consult us: we'll tell you in minutes whether what it says is correct and whether it suits you to sign it.
Yes, if you meet the contribution requirements administered by the BPS: having worked at least 180 days in the last 12 months (monthly workers) or 150 days (paid by day or hour).
The benefit is paid by the BPS for a maximum of 6 months, on a decreasing basis (it starts at around 66% of your average wage of the last 6 months and falls to about 40% in the last month). If you are 50 or older, the term extends to 1 year. You have 30 calendar days from the dismissal to apply at the BPS. If you were dismissed for gross misconduct or you resigned, in principle you don't qualify.
You must get a medical certificate. With a valid certificate, the BPS pays the sickness benefit (around 70% of your salary) from the fourth day of absence. While certified, the employer cannot deduct those days or dismiss you for absence.
The deadline has two dimensions: you have 1 year from the end of the employment relationship to start the claim, and within that claim you may demand credits generated up to 5 years back, counted from when each item should have been paid. These deadlines are interrupted if you file a conciliation request before the MTSS or a lawsuit. So, the sooner you consult and act, the more rights you protect.
The labor process has a mandatory prior conciliation stage before the Ministry of Labor (MTSS). If no agreement is reached, a lawsuit is filed before the Labor Courts. In practice: you tell us your case via WhatsApp, send us the documents you have (pay slips, contract, messages), we calculate what you're owed and, if you want to proceed, we handle everything. You go on with your life; we handle the case.
The employer's disciplinary power is broad but not unrestricted. Case law has systematized its limits: proportionality (the sanction suited to the offense and the worker's record), gradualness (warning, reprimand, suspension before dismissal), immediacy (contemporaneous with the event), non bis in idem (no double sanction for the same event) and the right of defense (the worker must be heard before a serious measure).
Recommended procedure: verify the facts, give the worker the chance to respond in writing, choose a proportionate sanction, communicate it in writing and keep a record. A suspension without pay must be reasonable in length. A disproportionate or unsupported sanction can be challenged and, if it conceals a wage cut, enables constructive dismissal. Also, a single offense may, due to its seriousness, amount to gross misconduct.
We advise on the legal framing and the wording of the sanction to minimize the risk of errors.
Jus variandi is the power to introduce changes in how work is performed (duties, hours, place), but with three limits case law deems insurmountable: (1) it must respond to objectively valid, verifiable reasons; (2) it cannot alter essential elements of the contract (salary, job category, working hours); and (3) it cannot cause material or moral harm to the worker.
The limit is absolute: even if the change has a strong reason for the employer, if it harms the worker it is unlawful. Also, whoever invokes proper use of jus variandi bears the burden of proving the change has objective justification. Abuse enables the worker to treat it as constructive dismissal. It's advisable to document the reason for the change and, when relevant, to agree it in writing.
Before any change of significance (transfer, schedule change, change of duties), consult us before implementing it.
Unjustified absence enables disciplinary power, but does not by itself amount to job abandonment. The correct procedure: record the absence, formally summon the worker to justify it or return by registered telegram with acknowledgment of receipt, and apply a proportionate sanction given their record. Failure to return may amount to abandonment; and repeated unjustified absences, sanctioned progressively and documented, may amount to gross misconduct. Do not assume abandonment or make unilateral deductions without the formal summons first.
We draft the summons and assess the framing so the procedure is shielded against any claim.
Abandonment does not arise from mere absence: it requires the cessation of work plus the worker's intent not to continue the relationship. To establish it, the employer must: (1) send a registered telegram with acknowledgment of receipt summoning the return within a reasonable term; (2) await the reply or the expiry of the term. If the worker neither returns nor justifies, abandonment is established: only unused leave, vacation pay and accrued year-end bonus are due, without severance.
If instead the worker is absent without intent to leave (illness, accident, personal reasons), there is no abandonment and the disciplinary route must be followed. The distinction is critical: getting the framing wrong can turn a situation that generates no severance into an unjustified dismissal.
We draft the summons and assess the specific case before deeming abandonment established.
Faced with a serious event (harassment, shortfalls, breaches), investigating before deciding is what gives the measure evidentiary support and makes it withstand a court claim. Recommended procedure: appoint an investigator; take written statements from those involved and witnesses in a private setting; gather available evidence (cameras, records, messages, documents); guarantee confidentiality and the accused's right to be heard and present a defense; and close with a written report concluding on the facts and recommending the measure.
A sanction or dismissal backed by a serious investigation withstands the court stage far better. The absence of a prior procedure, by contrast, significantly weakens the employer's position.
We run the entire procedure, take the statements and prepare the report with a reasoned recommendation.
The employer may monitor and supervise, but within precise limits: the monitoring must have a legitimate purpose, be proportionate and, as a rule, be known in advance by the worker. Law No. 18.331 (personal data protection) requires respecting the worker's privacy. Cameras cannot be placed in private areas (locker rooms, bathrooms) and should be signposted; company emails and devices may be reviewed if there is a prior, clear policy communicated to staff.
Evidence obtained breaching these limits may be declared inadmissible in court, frustrating proof of the very offense it sought to establish.
We recommend a written policy on the use of technological means. We draft it to your measure.
Wages are, in principle, untouchable: they cannot be deducted unilaterally. Cash shortfalls, breakages, fines or damages are not deducted automatically: they require a legal basis or the worker's agreement and, failing that, are channeled through disciplinary or judicial means, always with reliable proof of the event and the amount. There is a special "cash-shortfall" regime, a payment that compensates the cashier's risk and is of a salary nature. Case law does not allow set-off between the worker's labor credits and those the company may have against them for omissions, unless there was intent.
Deducting without proper legal grounds exposes the employer to a claim for the amount withheld plus legal accessories.
We assess the case and the correct way to instrument it so it doesn't create a contingency.
The indefinite-term contract is the rule: it has no end date and its termination without cause generates severance. The fixed-term contract (by term or by project/seasonal) has a set duration or object and, once the term or work is completed, ends without severance.
Note: the term must respond to a real cause. If used to disguise a permanent relationship, or if successive fixed-term contracts are chained without interruption, the relationship may be reclassified as indefinite and the termination treated as dismissal. If terminated before the agreed term without cause, the wages pending until the end of the term may be owed. It's advisable to draft the contract precisely and document the cause justifying the term.
We draft the contract with the correct framing and the documentation supporting the chosen modality.
Uruguay has no general statutory probation period. Treatment differs by category:
Important: if a day laborer has an accident and you intend to terminate within the waiting period, it's advisable to seek advice to verify the day count.
Remote work in the private sector is regulated by Law No. 19.978. Its essential features:
The absence of a written agreement creates uncertainty and exposes the employer to potential claims.
We draft the remote-work agreement or policy tailored to your company.
A foreign worker with legal residence may be hired under the same conditions as a national and has the same labor rights. The critical points to verify beforehand:
Hiring without verifying immigration authorization may lead to administrative penalties.
We assess each case and coordinate with immigration specialists when appropriate.
The key distinction is whether the per diem is accounted for or not. A per diem subject to accounting (reimbursement of documented actual expenses) has no salary nature and does not count toward year-end bonus, leave, vacation pay or severance. By contrast, a "lump-sum" per diem —a fixed amount the worker need not account for— has a salary nature and counts toward all those items.
The most frequent error is paying fixed amounts labeled "per diems" without accounting, which generates accumulated wage differences that only emerge at dismissal or during an inspection.
We review how yours are structured to avoid unforeseen liabilities.
Hours exceeding the legal working day are overtime with a 100% surcharge on business days and 150% on holidays or the weekly rest day (Law No. 15.996). The legal working day varies by activity: 44 weekly hours in commerce and offices, 48 in industry.
Night work (more than 5 hours at night, between 10 p.m. and 6 a.m.) carries a 20% surcharge on wages (Law No. 19.313). Both overtime and the night surcharge have a salary nature and count toward year-end bonus, leave, vacation pay and severance. Keeping a reliable time record is the best defense against an overtime claim.
We help you organize the time-recording system and the settlement of these items.
The most frequent error is excluding variable items from the base (overtime, commissions, lump-sum per diems, bonuses), which generates accumulated wage differences.
We organize your settlements to detect and correct differences before they turn into claims.
The minimum conditions for your activity stem from the agreement of the corresponding group and subgroup, negotiated in the Wage Councils (Law No. 10.449; collective bargaining system, Law No. 18.566). The agreements set minimum wages by category, mandatory items (attendance, seniority, night work) and sometimes benefits and special leave.
Misclassifying the activity or category, or ignoring the obligations of the current agreement, leads to underpayment, generating wage differences claimable retroactively up to 5 years. Agreements are renewed periodically.
We identify your group and subgroup and provide you with the current obligations.
Dismissal generates severance: for the monthly worker, one month's salary per year or fraction worked, capped at six months; for the day laborer, in days according to the days worked.
The calculation base is not only the fixed salary: it includes the average of variable items received in the last 6 months (overtime, commissions, bonuses, lump-sum per diems). Calculating the base incorrectly is the main source of later claims. Pending items are added to the amount: proportional year-end bonus, unused leave and corresponding vacation pay. Dismissal must be communicated reliably (registered telegram when the worker is not present).
We calculate the exit settlement, draft the telegram when appropriate and manage the entire termination process.
Gross misconduct is the only ground that exempts the employer from paying severance, but its application is exceptional (art. 10, Law No. 12.597). The burden of proof falls on the employer, who must establish:
Even if established, unused leave and vacation pay must be paid. A dismissal on this ground that is poorly substantiated turns into ordinary dismissal with severance and, sometimes, into abusive dismissal.
We assess the available evidence before proceeding. We never recommend this ground without solid evidentiary support.
These workers have special protection and termination requires extra care:
Before terminating in any of these situations, we analyze the timing, cause and documentation to minimize risk and quantify the real cost.
Once a harassment complaint is received, the company is obliged to act. The applicable framework is Law No. 18.561 (sexual harassment) and ILO Convention 190, ratified by Uruguay. An employer's inaction once aware exposes it to direct liability. Procedure:
Acting poorly or failing to act exposes the company to a claim from the affected worker and to administrative penalties.
We run the full investigation and define with you the appropriate measure in each case.
Union activity is specifically protected by Law No. 17.940. Any discriminatory act that undermines freedom of association is absolutely null. The consequences of a dismissal declared anti-union are severe: nullity, reinstatement within 24 hours and payment of all lost wages from termination to effective reinstatement.
The burden of proof is reversed from the general rule: it suffices for the worker to state why they believe they were harmed for union reasons, and the employer must prove a reasonable cause linked to the worker's conduct or capacity or to the company's needs. This does not make the delegate untouchable, but any measure must have solid grounds, unrelated to union activity and well documented.
We support you in negotiating with the union and in designing a strategy that protects the company's position.
Before a labor lawsuit there is a mandatory prior conciliation stage before the MTSS, with mandatory legal representation. There the strategy is defined: whether it suits to settle (and on what terms) or not, and to keep the record well documented. Good handling of the hearing often avoids the lawsuit, shortens timelines and improves the negotiating position. The record signed has the value of a binding agreement.
We prepare the strategy and represent you at the hearing.
Yes. In Uruguay the principal is jointly liable for the labor and social security obligations of its subcontractors, contractors and staffing suppliers (Laws No. 18.099 and No. 18.251). If the company providing services in yours fails to pay wages, BPS contributions or severance, the worker may claim directly from your company.
We review your service contracts and design the appropriate protection mechanisms.
Every employer must insure its workers with the State Insurance Bank (BSE) against work accidents and occupational diseases (Law No. 16.074). The BSE covers medical care and the benefit during temporary incapacity. Immediate obligations:
Failure to insure or to report generates direct liability and IGTSS penalties. If the accident resulted from a breach of safety rules, the worker may sue for damages, independently of the insurance.
We advise on handling the accident, the relationship with the BSE and preventing additional claims.
The Labor Inspectorate (IGTSS) may act on its own initiative or upon complaint. The most frequent infractions are: unregistered work, differences in the settlement of items (overtime, leave, year-end bonus), breach of health and safety rules, and failure to apply the sector's collective agreement.
Penalties include fines graduated by severity and recurrence, temporary closure in serious cases and publication in the offenders' registry. The inspection may lead to individual claims from the affected workers.
We carry out a preventive labor-compliance diagnosis so your company is in optimal condition for any inspection.
We guide you clearly and represent you with judgment in every labor situation.
We file and run your claim before the Labor Courts with care and strategy.
We review your settlement and claim what you are actually owed.
We review and claim unpaid overtime, with the surcharges set by law.
We seek a favorable agreement in the prior stage, avoiding the wear of a lawsuit.
We assess and claim when the dismissal responds to an illegitimate motive.
We advise and support you on workplace or sexual harassment, with full confidentiality.
We represent you in internal investigations and proceedings with your employer.
Prevention, management and defense so your company decides with confidence. Service also available in English for foreign companies.
Ongoing support in day-to-day decisions to act safely and avoid disputes.
Conducting internal administrative investigations and disciplinary proceedings, with evidentiary support.
End-to-end handling: investigation, interviews and resolution, with confidentiality.
Advice on the applicable agreement, items and obligations by group and subgroup.
Union disputes, sanctions on delegates and negotiation, mindful of union protection.
Settlement calculation, telegrams and dismissal documentation, done with care.
Representation of the company in MTSS conciliations and in labor lawsuits.
Drafting and updating internal regulations and harassment protocols to measure.
Audit of contingencies and liabilities before buying, selling or investing.
Training for HR, middle management and teams on day-to-day labor management.
We are a firm with decades of experience in labor law, advising both workers and companies. Knowing both sides of the table is our greatest strength: it lets us give balanced guidance, anticipate problems and defend each case with judgment and rigor. To that track record we add an artificial intelligence assistant that provides immediate responses, so professional attention begins from the very first message.
Clear rules from the first contact. You know how and when we charge before deciding anything.
The consultation is free. In claims we work on a contingency basis: you advance no fees and, if nothing is recovered, the firm does not charge. For services that do not involve a monetary claim (advice, contract review, reports), we provide a prior quote.
We work with fees per matter (a defense, a set of regulations, a due diligence) or with a monthly retainer for ongoing support.
The Laboral AI assistant is free: available 24/7, at no cost and with no commitment.
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