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Employment Termination in Uruguay

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Termination process

Employers have the right to terminate employees, provided prior notice is provided, along with a severance package.

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Notice period

There is no officially stipulated notice period in Uruguay.

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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 misbehaviour 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 labour 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 pay for every year employed up to six months of pay.
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Probation periods