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Hire compliantly inUruguay Talk to an Expert

POPULATION

3.4m

CURRENCY

$ (UYU)

CAPITAL CITY

Montevideo

Overview

Uruguay, officially the Oriental Republic of Uruguay, is a country in South America. Known for its stunning landscapes, diverse culture, and rich history, Uruguay is a popular destination for tourism and cultural exploration. From the bustling streets of Montevideo to the serene landscapes of the Uruguayan countryside, Uruguay offers a wealth of cultural and natural attractions.

Uruguay's economy is diverse, with key sectors including manufacturing, services, and agriculture. The country is a major exporter of goods and a popular tourist destination, attracting visitors from around the world with its beautiful cities, historic sites, and world-renowned cuisine.

The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

The information provided in this article is provided for general informational purposes only. Accuracy, completeness, or reliability is not guaranteed. This content does not constitute legal, professional, or other advice and should not be relied upon. Any use of the information is at your own risk. Users are responsible for independently verifying any information. All materials are provided "as is," without any warranties of any kind, express or implied and Atlas Technology Solutions, Inc. disclaim all liability arising from use of, or reliance on, this content

Local Employment Regulations

Last updated on March, 22nd, 2023

Employment Contracts

Employment contracts in Uruguay may be either verbal or written. It is recommended to execute an employment contract in writing. Many employment relationships also are governed by collective agreements.

Working Hours

In Uruguay, standard working hours for the industrial sector are fixed at 48 hours per week, eight hours a day over six days. In the commercial sector, the limit is 44 hours a week and eight hours a day. Overtime hours generally are paid at 100% over the standard wage on regular days and 150% over the standard wage on non-working days such as holidays and Sundays. Overtime is limited to eight hours a week.

Public Holidays

In Uruguay, the public holidays are:

New Year's Day
Labor Day / May Day
Constitution Day
Independence Day
Christmas Day

Employment Termination/Severance

The rights and responsibilities for terminating an employment contract in Uruguay are generally detailed as part of an individual or collective agreement. This includes the process for dismissing an employee and any requisite notice period. Employers are not required to pay severance if the employee breaches the employment contract. Severance is one month of the employee’s salary per year of service up to six months.

Compensation

Employees are entitled to a 13th-month salary bonus in Uruguay, which must be paid in two parts distributed in June and December.

Population 3.4m

95.9%

Urban Population

92%

Internet access

73.8%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Last updated on March, 22nd, 2023

Vacation Leave

Employees in Uruguay are entitled to paid vacation leave of at least 20 days after one year of employment and receive an extra day of vacation leave after every four years of service.

Sick Leave

Employees receive up to one year of leave for illness in Uruguay. Eligible employees receive benefits through Uruguay’s social security system, Banco de Previsión Social (BPS).

Maternity/Paternity Leave

Female employees receive 14 weeks of paid maternity leave in Uruguay. Up to six weeks can be taken before birth and the remaining eight weeks taken after birth. Fathers receive 13 days of paid paternity leave in Uruguay.

Health Insurance Benefits

The National Integrated Health System includes both the private sector and the public sector. Public health services in Uruguay are managed by the Administración de los Servicios de Salud del Estado (ASSE) or State Health Services Administration. In addition to public health services, health services are also provided by Las Instituciones de Asistencia Médica Colectiva (IAMC) or Collective Medical Care Institutions, which are private organizations.

Unemployment 8.4%

63.9%

Labor force population share

46.8%

Female share of labor force

82%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage