Labor laws relating to individual rights and  obligations are governed by detailed legislation.

The working day is limited to 8 hours a day, totaling  44 hours a week in commercial activities and 48  hours a week in industrial activities. In business  activities, each employer can adjust the opening  and closing hours. The rules state that stores can  also be opened on Saturday and Sunday.

Wages are fixed in each case with the employee or,  in some cases, are negotiated within agreements  with unions. It is not possible to reach an  agreement to grant the workers a fee lower than  the national minimum wage established by the  Executive Branch.

Paid annual vacation

The workers are entitled to be paid an annual leave of  twenty continuous days, which is increased by one day  every four years.

Vacation salary

Workers are entitled to receive, an additional payment  named as vacation salary, for better enjoyment of the paid  annual leave.

Thirteenth Mandatory Salary

The Thirteenth Mandatory Salary must be paid to all  employees of the private sector. It consists on one twelfth  of the total salary received by the employer in the previous  twelve month. This extra salary is charged twice: the first in  June an the other half in December. 

Compensation for lay off

The employer has the power to fire the worker, and the  payment of compensation is mandatory. In the case of a  monthly employee, the compensation is the equivalent of 
a monthly salary for each year worked for the company,  with a maximum of six monthly salaries and their incidents. 

In the case of a day employee, the calculation relationship  is similar to that of a monthly one, but based mainly on the  actual working hours.

Foreign staff 

Foreigners working in Uruguay for more than six months  obtain a temporary (up to 2 years) or permanent residence,  which is granted without further requirements than a 
document proving no criminal records in the country of  origin of the worker and some others certificates.

The only restricted activities for foreign workers are:

- Fishing: The captain and at least 50% of the crew must be  Uruguayan
- Uruguayan airline, the crew must be Uruguayan and at  least 75% of the employees must be Uruguayan citizens.
- Tax free zone: 75% of the employees must be Uruguayan  citizens.

Social Security

The social security system covers the risk of invalidity,  old age retirement, sickness, accident, maternity,  unemployment and death. Membership is compulsory,  except for foreign people working in Free Zone. Also, some  foreign workers may choose to be excluded from the social  security system, under international treaties signed by  Uruguay.

The government agency leading the security system  “Banco de Prevision Social” is responsible for collecting all  the contributions made by companies and employees and 
to maintain the labor file of each worker.