Workday, licenses and telecommuting in Uruguay
The workday is legally limited to 8 hours per day. Therefore, the hours that exceed that limit are considered "overtime" and according to the regulation they are paid with a 100% surcharge on the corresponding hourly wage (except on rest days, which are paid with a 150% surcharge). In addition, a midday break must be taken.
The weekly limit of work is 44 or 48 hours (which will depend on the activity, being 48 hours in the industrial sector mostly and 44 in commerce and services). In principle, the usual work schedule is six consecutive days and a weekly rest day or a day and a half off (depending on the regime). By agreement, the weekly rest can be extended by redistributing the hours of the sixth day (e.g. Saturday).
Overtime
Overtime is the hours that exceed the limits established by law, contract or previously agreed agreements. Their remuneration is the result of this restriction and compensates for the additional effort required in longer workdays. They cannot be compensated with other benefits (for example, days off).
There are certain workers who are exempt from the regulations that limit the workday, and therefore from overtime: among other cases, senior staff, travelers and plaza vendors.
The worker is not obliged to work overtime except in cases of force majeure or when there is an imperative need. This derives from the duty of collaboration and good faith in labor relations.
It is also worth mentioning that there is a departure from the general regime regarding telecommuting, regulated in our country with a specific system that expressly allows the possibility of agreeing on a "flexible" schedule to be carried out during the week as long as it does not exceed the legal maximum weekly hours applicable to the company's activity (e.g. 44 or 48 hours). In this specific system, the total hours worked per day are not taken into account, but rather over the course of the week.
Night shift
Our regulations establish special protection for those who work at night, between 10 pm and 6 am, compensating with a "surcharge" that must be at least 20% of the basic salary or its equivalent in reduced hours, at the employer's choice, as long as more than 5 hours of continuous work within that time frame are exceeded.
Despite all of the above, it should be noted that certain sectors of activity have, by Collective Agreement, a more favorable regulation for the worker.
Regulatory annual leave
The vacation time must be paid as if actually worked based on the current salary (including marginal items such as commissions, average overtime hours, etc.). The leave corresponds to the number of paid vacation days to be enjoyed.
All workers are entitled to a minimum of 20 days, having worked for 12 months, 24 biweekly periods or 52 weeks in the calendar year (January to December). The duration of the annual vacation is then linked to the actual time worked in that period. There is no minimum seniority required in the company to generate this right. If the minimums are not met, the duration will be set proportionally.
Additionally, after completing the fifth year in the same company, an "extra" day is added for every four years of seniority. Therefore, after five years, the worker is entitled to 21 days of leave, and subsequently, after eight years, another day is added.
The leave must be taken within the following year, on a date agreed upon by both parties (taking into account the company's possibilities, season, etc.). It cannot be substituted for money.
The leave must be taken in a single continuous period without counting holidays or Sundays. However, the law allows, by Collective Agreement, the division of the leave into two periods (fractionation), the shorter of which cannot be less than 10 days, as well as the countability of holidays.
Vacation Pay
In addition to the benefit of paid leave, which consists of a certain number of days of paid rest during which the employee is entitled to not work and continue receiving their regular salary, including all salary-related items they usually receive, the regulations also provide for (for the private sector) the payment of "vacation pay" or "sum for better enjoyment of the leave". This payment must be made in all cases before the start of the leave.
Vacation time is compensated in Uruguay in a dual manner. On one hand, the days of absence are paid to ensure that the worker does not lose their salary during the rest period. On the other hand, an additional sum is granted to ensure effective enjoyment of the leave, known as vacation pay, which is equivalent to the net amount to be received for the leave.
Special Licenses
In Uruguay, there is a law that establishes special licenses for private sector workers in certain circumstances, with a different purpose than annual rest. A system of maternity leave (subsidy granted by social security), special licenses for blood donation and for Pap smear and/or mammography exams has been provided, as well as the following special licenses (paid by the employer):
- Study leave
- Marriage leave
- Maternity, paternity and adoption leave
- Bereavement leave
- Leave for parents with children with disabilities
- Leave for relatives in charge with disabilities or terminal illness
Christmas Bonus (annual supplementary salary)
It is an additional salary item or annual additional remuneration, equivalent to one twelfth of the total wages and salaries paid in the year.
For several years now - with the support of the regulations - the Executive Branch authorizes its payment in two stages, having a deadline to pay what was generated between December 1 and May 31 until June 30 of each year; and what was generated between June 1 and November 30 until December 20 of each year.
This "Christmas bonus" or annual additional salary is calculated considering:
- the salary items paid directly by the company (e.g. excluding tips and subsidies paid by social security)
- cash benefits (excluding items such as food)
- all salary-related items, such as punctuality bonus, commissions, etc. (excluding indemnity-type allowances).
Legal holiday system
It is necessary to distinguish between "paid holidays" and "simple" or "common" holidays, as our law has provided that in the former, work must be remunerated in a special way.
The "paid holidays": January 1, May 1, July 18, August 25 and December 25 of each year (and all those established as such by Collective Agreement) every worker will receive remuneration as if they were working; and if they work, they will receive double pay.
Monthly workers who do not work on a paid holiday will receive their regular salary, as both business and non-business days are considered within it. On the other hand, those who work on that holiday must receive the salary corresponding to the full month "plus an additional day". Meanwhile, daily workers will be paid the daily wage as if they had worked, even if they did not, and if they did work, they will receive double pay.
On the other hand, work on "simple" or "common" holidays (unless otherwise established by award, collective agreement or contract) is remunerated like any normal workday. These are: January 6, Monday and Tuesday of Carnival week, Monday to Saturday of Tourism week, April 19, May 18, June 19, October 12 and November 2; with the possibility of establishing other exceptional ones.
Monthly workers will receive their regular salary whether their activity is interrupted or not, and daily workers will only receive the daily wage (common) if they work on the holiday, following the criterion of "effective work" that characterizes them.
Can workers be called to work on a non-working holiday? Yes, the law allows it in those sectors where it is common for activities not to stop and for employees to be called to work, assuming the additional payment provided by the regulations. There is abundant jurisprudence that supports this practice, and in certain activities it has been understood that the worker cannot refuse to attend.
It is not necessary to request authorization from the Ministry of Labor or carry out any special procedure to call employees to perform their usual tasks on a day declared as a non-working holiday.
Special Licenses
In addition to vacations, workers are entitled to other paid absences called special licenses for blood donation and for Pap smear and/or mammography exams, dependent private workers are entitled to the following special licenses with pay:
- Study leave
- Marriage leave
- Paternity and adoption leave
- Bereavement leave
- Leave for parents with children with disabilities
- Leave for relatives in charge with disabilities or terminal illness
It is common to find normative clauses that regulate special licenses provided for certain sectors of activities, more beneficially, by collective agreements negotiated within the framework of Wage Councils.
Telecommuting
In Uruguay, telecommuting in a dependent regime is regulated by law and is defined as the performance of work activities, either totally or partially (hybrid regime), outside the physical environment provided by the employer, using information and communication technologies. In cases where remote work is partial (hybrid regime), there will be telecommuting when the parties agree to it (the application of its regulations being optional).
Telecommuting requires the worker's consent, being reversible. The permanent change from in-person work to telecommuting, and vice versa, will require the mutual agreement of the parties and must be documented in writing. Otherwise, any change that involves working in one mode or another for more than 45 (forty-five) consecutive days will be considered permanent, and if telecommuting is agreed upon after starting an in-person work relationship, both the employer and the teleworker will have the right to return to in-person work within 90 (ninety) consecutive days from the start of telecommuting, after written or electronic communication to the other party with at least 7 (seven) days' notice.
Furthermore, equality of rights with employees working in person is ensured (breaks, weekly rest, rest between shifts, disconnection, privacy, safety and occupational health).
The provision of the necessary equipment, supplies and services to carry out telecommuting is also provided for in the regulation; the possibility of freely distributing the schedule and overtime work is also included.