Employment Law

Employment Contracts in Uruguay

When hiring employees in Uruguay, we strongly recommend that you enter into a written employment contract. The contract should include all relevant details of the employment agreement, be written in Spanish, and use the Uruguayan peso as currency.

Fixed Term

Probation	3 months unless otherwise stated in writing
Termination notice period	1 week + time until next payday
Severance pay	1 month’s salary for each year of service, up to 6 months’ salary

Indefinite

Probation	3 months unless otherwise stated in writing
Termination notice period	1 week + time until next payday
Severance pay	1 month’s salary for each year of service, up to 6 months’ salary

Uruguay Working Hours

The standard working week for Uruguayan employees is 48 hours, 5 days in total.

Holiday Policy

Uruguay Vacation

Employees in Uruguay are entitled to at least 20 days of paid leave per year.

Uruguay Sick Leave

Employees in Uruguay can receive paid sick leave after the fourth day of absence.

In order for employees to receive the full wages they are entitled to, workers must provide their employers with a valid medical certificate from a certified physician.

Maternity and Paternity Leave in Uruguay

Female employees in Uruguay are entitled to 14 weeks of paid maternity leave. Male employees are entitled to 10 days of paid paternity leave.

Employee Severance Pay and Termination of Contract in Uruguay

There is no law in Uruguay that provides for a minimum notice period for terminating a contract, but it is good practice to provide one. Severance pay is typically equivalent to one month's salary per year from the employer, up to a total of up to six months' salary.

Taxes in Uruguay

Uruguay's income tax system is progressive, with tax rates ranging from 0% to 36%, depending on income level.

Uruguay's corporate tax rate is generally 25%.

Health Insurance in Uruguay

Uruguay has a social health care system, but employers also regularly offer private health insurance as an employment benefit.

Salary and Benefits

Uruguay’s Compensation Law

The minimum wage for a full-time employee in Uruguay is 16,300 pesos per month.

Benefits Administration in Uruguay

Setting up a benefits system for the Uruguayan workforce can be difficult and complex if you are unfamiliar with the country, its customs and employment laws. Standalone setup can take weeks and may cause unexpected delays.

We will use our knowledge and experience to handle everything to ensure you are compliant and ready for employment in Uruguay.

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