Employ and run payroll with ease in

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

Services available in this country:
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  • Capital City

    Montevideo

  • Currency

    Uruguayan peso ($U, UYU)

  • Languages

    Spanish

  • Population size

    3,518,552

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

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.