Easily manage employment in

Puerto Rico
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Make employment in Puerto Rico easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Puerto Rico, all in one easy-to-use platform.

Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    San Juan

  • Currency

    United States Dollar ($, USD)

  • Languages

    Spanish and English

  • Population size

    3,285,874

Services available in this country:
Employer of Record ProductContractor Management
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Grow your teamTaxesTypes of leaveEmployment TerminationBenefits Guide

Employment termination in Puerto Rico

Termination process

In line with Puerto Rico’s Unjust Dismissal Act, permanent employees (i.e. those employed on an indefinite-term contract) can only be terminated for “just cause” otherwise, they’ll be entitled to severance pay by the employer.

Notice period

There’s no mandatory notice period in Puerto Rico.

Severance pay

Severance benefits in Puerto Rico are determined by when an employee was hired, that is:

  • Severance for workers employed on or before 26 January 2017 is equal to three months’ salary plus two weeks’ pay for each year of service.

  • The same calculation applies to workers hired after 26 January 2021 although their severance compensation is limited to nine months’ pay.

Probation periods

Probation periods in Puerto Rico range from nine months for general employees to 12 months for managerial positions and executives.