Uruguay (UY)
South America's most progressive and stable country — Uruguay consistently ranks first in Latin America for democracy, press freedom, and quality of life.
Employment Rights
Sick leave, dismissal protection and red flags in Uruguay.
Employment in Uruguay is governed by the Código del Trabajo (Labour Code) and a comprehensive set of laws administered by MTSS (Ministerio de Trabajo y Seguridad Social). Uruguay has some of the strongest worker protections in Latin America. Formal employment requires BPS registration, and workers are entitled to aguinaldo (13th month salary), paid vacation (vacaciones), and social security contributions. Trade unions (sindicatos) are legally protected and active. Collective bargaining (Consejos de Salarios) operates by sector and sets minimum wages above the national minimum for most industries.
Sick leave
Rules: Employees sick for 4 or more consecutive days must obtain a medical certificate (parte médico) from their mutualista or ASSE doctor. BPS pays the sickness benefit (subsidio por enfermedad) from day 4 of absence — 70% of average salary from the past 6 months. For the first 3 days, most employment contracts require the employer to pay (depends on collective agreement). Chronic illness: up to 1 year of BPS sick pay; renewable for serious cases.
Doctor note: Medical certificate required from day 1 for absence of 4+ days (mutualista certificate sent directly to BPS and employer).
Employer pay: Days 1–3: employer obligation (varies by collective agreement — many employers pay full salary for first 3 days). Day 4 onwards: BPS subsidio por enfermedad at 70% of reference salary.
Long-term: BPS sickness benefit maximum duration: 12 months per illness episode (renewable for serious illness). After exhausting sick pay, disability pension (pensión por invalidez) may be available.
Dismissal protection
Law: Ley 10.489 and related labour statutes. Uruguay operates an "at-will with severance" system — employers can dismiss without cause but must pay a despido (severance payment). No reinstatement for wrongful dismissal — compensation is the remedy. Special protections: union delegates (5 years protection against dismissal after losing position), pregnant women (12 months after return from maternity leave), and workers who have filed a labour complaint.
Deadline to sue: Claims for unpaid wages, underpaid despido, or labour violations must be filed at MTSS or Juzgado de Trabajo within 2 years of the cause of action. Always check with a lawyer immediately — statute of limitations runs from the dismissal date.
Probation
Uruguay law does not impose a mandatory minimum probation period. However, employment contracts commonly include a prueba (probation) clause of 30–90 days during which dismissal is simpler. After probation ends, dismissal requires payment of despido (severance). Some collective agreements specify longer protections. Always review your contract's prueba clause before signing.
Notice periods
Employers must give prior notice (previo aviso) OR pay in lieu: workers with 1+ year of service receive 1 month notice, 2+ years: 2 months. Minimum: 1 month for employment over 6 months. Instant dismissal with full despido payment also permitted. Despido calculation: approximately 1 month salary per year of service (exact formula varies by sector and collective agreement). No despido if dismissed for serious cause (causa grave, e.g. theft, violence).
Working time
Max hours: 44 hours per week for day-shift workers (diurno). 42 hours for mixed shifts. 36 hours for night shifts (nocturno). Monthly maximum: 190 hours. Legal maximums enforced by MTSS inspection.
Min rest: 12 hours minimum consecutive daily rest between shifts. Weekly rest: 36 continuous hours (typically Sunday). Public holidays: all workers entitled to 7 mandatory paid holidays (Año Nuevo, Epifanía, Día del Trabajador, Día de la Constitución, Día de los Difuntos, Christmas, and one more per year). Semana de Turismo counts as holidays.
Overtime: Overtime (horas extra) paid at 100% premium for diurno overtime, 150% for nocturno overtime. Voluntary unless collectively agreed. Recorded overtime must be notified to MTSS.
Vacation
20 working days paid annual leave after completing 1 year of service (período de licencia). Vacation pay calculated as 1/26 of annual salary per vacation day (including salary, IVA devolución adjustments). Vacation must be taken within the year following accrual — it cannot be permanently waived or replaced with payment (unless on termination). Part-year employees accrue vacation proportionally. Vacation scheduling agreed between employer and employee.
Anti-discrimination
Ley 16.045 (gender discrimination), Ley 17.817 (racial/ethnic), Ley 18.065 (domestic workers), and Ley 19.685 (trans persons) provide employment discrimination protections. INDHH (Instituto Nacional de Derechos Humanos) handles discrimination complaints. MTSS inspectors investigate labour rights violations. Uruguay was the first Latin American country to legislate for trans employment quotas in public sector (Ley 19.684, 2018).
Contract red flags
- !Contract in Spanish that you have not had professionally translated before signing.
- !No BPS registration by the employer within the first week of employment — illegal and means no social security coverage.
- !No FONASA contributions — means no mutualista health coverage.
- !Salary paid partly or fully "en negro" (cash off the books) — leaves you without social security, sick pay, and vacation accrual for the unreported portion.
- !Contract that waives despido (severance) in advance — any such waiver is unenforceable under Uruguayan labour law.
- !Probation period longer than 90 days without written collective agreement justification.
- !No written contract at all — always demand a signed written contrato de trabajo before starting.
- !Role classified as "service provider" (prestador de servicios) without genuine self-employment structure — potential false self-employment (trabajo dependiente encubierto) which affects your rights and BPS status.
- !Salary below the Salario Mínimo Nacional — UYU 24,572/month from January 2026 (rising to UYU 25,383 from July 2026); applies to all formal employment; sector Consejos de Salarios usually set higher floors.
Employment Rights
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