FTC regulated: Yes

Remarks

There is no statutory regulation. Collective agreements and jurisprudence provide that FTCs are only permitted for objective or material reasons, when the task to be performed is of limited duration.

Valid reasons for FTC use: no limitation

Maximum number of successive FTCs: no limitation

Maximum cumulative duration of successive FTCs: no limitation

Remarks

Although there is no statutory provision on maximum duration of FTCs, most of the collective agreements provide and jurisprudence recognizes that the maximum duration of 1 FTC is of 6 months, and only 1 renewal is allowed, making the maximum cumulated duration of 12 months.

Maximum probationary (trial) period (in months):

Remarks

There is no legal regulation of the probationary period, however, trial period is largely accepted and used by employers. Jurisprudence has admitted that dismissals within 90 days do not generate compensation to the worker subject to the trial period.
According to article 7 of Law on Youth Employment, in the employment relationship of young workers, a trial period may be foreseen for a period of up to thirty calendar days for contracts of six to eleven months duration and up to sixty days for contracts of twelve to eighteen months duration.

Obligation to provide reasons to the employee No Valid grounds (justified dismissal): any fair reasons

Remarks

In Uruguay there is not statutory valid grounds for dismissal, which means that on a general basis, dismissal is allowed without justifying any cause, once there are provisions ensuring the payment of severance indemnity. There is also no statutory provision concerning obligation of a notice prior to dismissal.

Prohibited grounds: trade union membership and activities

Remarks

Law No 17.940/2006 provides stability to trade union members, in which case dismissal will be only possible after a judicial process aiming to prove possible misconduct able to allow the respective dismissal (Articles 1 and 2).

Workers enjoying special protection: pregnant women and/or women on maternity leave, confirmed injured workers, workers on temporary leave following an occupational disease or a work injury

Remarks

Laws No 16.074/1990 (Articles 69) establishes provisions for special severance indemnities of workers that have suffered occupational ilnesses and accidents. In this case, the worker will be entitled to triple severance indemnity if the woker has been dismissed during a professional illness leave or labour accident or after 180 days of the worker´s return to work.
Moreover, workers in a state of pregnancy or maternity leave may only be dismissed with the payment of statutory severance pay indemnity plus 6 months salary if the dismissal happens during pregnancy or after a period of 6 months of the worker´s reincorporation to work (Law No N° 11.577/50).
Workers who suffer from any illness and are in treatment also enjoy special protection (Law No 14.407/75) and in case of unfair dismissal are entitled to double severance indemnity for an employer who dismisses an employee during sick leave or after 30 days of the worker´s return to work.

Notification to the worker to be dismissed: no specific form required

Pay in lieu of notice: No

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Remarks

The only situation provided by Law, in which an approval of a judicial authority is needed, concerns the dismissals of trade union members.

Approval by workers' representatives: No

Notes / Remarks

Notes

It appears that there are no requirements to serve a notice to dismiss a worker.

Definition of collective dismissal (number of employees concerned): The Uruguay labour law contains no legal provisions on dismissals for economic reasons.

Prior consultations with trade unions (workers' representatives): No

Remarks

Although there is no statutory obligation to inform trade unions or other workers'representatives about collective dismissals, in practice, it is common the participation of the respective organization in the process.

Notification to the public administration: No

Notification to workers' representatives: No

Approval by public administration or judicial bodies: No

Approval by workers' representatives: No

Priority rules for collective dismissals (social considerations, age, job tenure): No

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: No

Severance pay:

Remarks

The worker is entitled to receive compensation from the empoyer at the end of the employment relationship at the initiative by the employer, except in cases in which the dismissal was for cause (gross misconduct), in which case the just cause must be doubtless proved.
The rules governing the determination of the amount of severance pay (IPD) differ according to whether the workers are monthly wage earners or day laborers (Laws No. 10,489 of 6/6/1944, No. 10,542 of 20/10/44 and No. 10,570 of 15/12/44)
Law No. 10.489 of 1944 (Article 4): For the monthly paid workers, the compensation for wrongful dismissal is one month wages for every year of service, and limited to six-month pay. The basis of calculation will depend on the form of hiring; the daily wage or the monthly payment. This base will be increased by all the incidences (salary benefits) that this worker has.

In the case of a day laborer, the seniority for the purpose of determining the number of days that correspond to the worker as compensation is calculated taking into account the day of dismissal backwards, year by year, the number of days made in each of the years during the entire period in which he has worked. The maximum possible compensation in all cases is 150 days.

Domestic workers are rules by Law No 12.597/1958, by which the compensation is only due when the worker has reached at least 1 years of lenght of service.

tenure ≥ 6 months: 0.5 months

tenure ≥ 9 months: 0.8 months

tenure ≥ 1 year: 1 months

tenure ≥ 4 years: 4 months

tenure ≥ 5 years: 5 months

tenure ≥ 10 years: 6 months

tenure ≥ 20 years: 6 months

Redundancy payment:

tenure ≥ 6 months: 0.5 months

tenure ≥ 9 months: 0.8 months

tenure ≥ 1 year: 1 months

tenure ≥ 2 years: 2 months

tenure ≥ 4 years: 4 months

tenure ≥ 5 years: 5 months

tenure ≥ 10 years: 6 months

tenure ≥ 20 years: 6 months

Notes

Although Uruguay does not have any statutory provision for unfair dismissals, the Tribunals may find find that the grounds for a claim for abusive dismissal are proved and can order the payment of damages which amount from 1 to 3 times the ordinary severance indemnity.