Uruguay is a country in South America bordered by Argentina and Brazil. It’s the only country in South America that is situated completely south of the Tropic of Capricorn (one of only four in the world). Uruguay is ranked one of the highest in Latin America for democracy, peace, low perception of corruption, and e-government.

The minimum wage is UYU 19,364 per month, and a standard workweek is 44 hours at 8 hours per day. Work done past 44 hours is considered overtime and regulated by the employment contract or collective agreements.

Overtime work has a maximum of usually 8 hours per week, and is paid at between 200%-250% of the regular rate.

Parental Leave

Pregnant employees are entitled to 14 weeks of maternity leave, usually split as 6 weeks before the due date and 8 weeks after the birth. The leave is paid by social security. Fathers/partners are entitled to 13 days of paid paternity leave.

Sick Leave

Employees are entitled to up to 1 year of sick leave, which is paid at 100% of the salary for the first 3 days by the employer. After 3 days, the leave is compensated at about 70% of the salary by social security.

Paid Leave

There are 12 public holidays in Uruguay, and employees are entitled to 20 days of paid time off each year (after finishing 1 year of work at their company). The entitlement can increase by 1 day every 4 years, up to 25 days total.

Process

Employers can terminate a contract for just cause, and it requires written notice and an explanation for the termination. If the termination reason is misconduct, a warning needs to be given so the employee has a chance to explain their actions.

Notice Period

The notice period is usually 1.5 weeks for both employees and employers.

Severance Pay

Severance pay is granted to terminated employees, usually calculated as 1 month of salary for every year of work at the company, up to 6 months.

It is mandatory to give employees a 13th-month salary bonus equal to 1 month of wages, usually paid in 2 halves in June and December.