Uruguay
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- Capital City
Montevideo
- Currency
Uruguayan peso ($U, UYU)
- Languages
Spanish
- Population size
3,518,552
Employment termination in Uruguay
Termination process
Employers have the right to terminate employees, provided prior notice is provided, along with a severance package.
Notice period
There is no officially stipulated notice period in Uruguay.
Severance pay
The figure varies based on whether the workers' payment cycle is monthly or daily (except for dismissal with cause, which in the Uruguayan system implies misbehavior by the employee). The length of employment agreement also impacts severance:
Fixed-Term Contracts: When employees work until the end of the term agreed in their labor contract, they won't be entitled to severance compensation. In case they are terminated earlier, salaries until the end of the term agreed must be paid.
Indefinite Term Contracts: Employees are entitled to severance payments which includes one months salary for every year employed up to six months of salary.