Termination of Work and Dismissals in Uruguay
The employment relationship can end for various reasons, some of which are beyond the company's control, others beyond the worker's control, and in some cases as a result of an agreement, even established in advance, as in the case of fixed-term contracts.
Some of these hypotheses are:
- Resignation. There is no obligation to give advance notice.
- Abandonment of position. It must be proven (prior warning and evidence of it).
- Dismissal. Compensation must be paid.
- End of term or condition. Example, the return of the holder after a substitution.
- Early termination of fixed-term contracts. Eventually, compensation for the remaining term may be required.
- Dismissal for gross misconduct. No compensation is due (either due to accumulation of penalties or sufficiently serious conduct).
- Special dismissals (protected workers entitled to special compensation).
Dismissal Compensation
In our country, the termination of the employment contract by the employer's unilateral decision is not subject to prior notice, consent, or acceptance by the worker. Nor is the expression of a cause or reason required, except in specific cases (e.g. union protections).
However, this termination of the employment relationship entails the employer's obligation to compensate the worker with the payment of a legally pre-established or "tariffed" sum for damages. This compensation is calculated based on work seniority and remuneration at the time of departure.
One month's salary (understood as the total monthly income) is due for each year or fraction, with a cap of six. Unlike other systems, in Uruguay, after six years of seniority, the worker's compensation does not continue to increase.
Special Dismissals
In certain exceptional circumstances, special compensation is required due to the dismissal occurring under particular conditions. These situations affect workers who enjoy specific protection, as their condition places them in a state of greater vulnerability.
Some examples include:
- Worker who was recently certified due to illness. Stability/Protection period: until 30 days of effective work have elapsed since returning to their usual tasks, dismissal compensation equivalent to double the normal amount (does not count period on unemployment insurance or leaves).
- Worker who suffered an occupational disease or work accident. They have the right to be reinstated in the same position they held or a task compatible with their abilities. Reinstatement within 15 days after discharge. Prohibition of dismissal within 180 days of reinstatement. If not reinstated: compensation equivalent to three times the common dismissal.
- Pregnant worker or recent mother. Stability period: 180 days from effective reinstatement (after maternity leave). Special compensation equivalent to 6 months' salary, plus the legally corresponding dismissal compensation.
- Dismissal as retaliation for reporting to authorities. Triple the common dismissal (not cumulative in this case). Within 180 days of the worker's observation or "report," it is presumed to be due to that cause (unless proven otherwise).
- Abusive dismissal. When the worker alleges that the employer has caused damages beyond those covered by the common dismissal compensation. Some examples of abusive dismissal may include dismissal based on racial, religious, union, gender, sexual orientation reasons, as retaliation for claiming any rights.
- Dismissal of a worker with a disability. 6 months' salary (in addition to the common dismissal compensation).