Understanding Uruguay's Working Hours and Labor Regulations

Uruguay's labor framework grants significant autonomy to industry unions and employers during negotiations, with the government playing a supportive role. The Ministry of Labor serves as a mediator in disputes, while collective agreements between unions and employers establish standards for wages, working conditions, and employee benefits.

Standard Working Hours and Overtime Regulations

Uruguay's labor laws define standard working hours as 8 hours per day, with weekly limits of 44 hours for commercial sectors and 48 hours for industrial workers (though industrial administrators are capped at 44 hours). These standards vary by industry and work arrangement, including shift patterns and flexible schedules.

Industry-Specific Variations

Automotive repair and metal industries: Transitioning from 48 to 46 hours weekly by 2025, with pay maintained at 48-hour levels
Apparel sector: Standard weeks of 44 or 43.5 hours
Dairy distribution: Reduced to 44 hours with 48-hour compensation

For detailed industry specifications, consult Uruguay's National Institute for Employment and Vocational Training.

Overtime Compensation Structure

Under Law 15,996 (1988) and Decree 550/89, overtime pay is calculated as follows:

Regular days: 100% premium above standard hourly rate
Holidays/weekend days: 150% premium

Overtime is rounded to the nearest half-hour, with a weekly maximum of 8 hours requiring employee consent. Exceptions require Ministry of Labor approval.

Special Work Arrangements

Commercial sector employees must receive breaks during their shifts:

Continuous work: 30-minute paid break
Non-continuous work: 2.5-hour unpaid break (reducible to 1 hour by agreement)

Weekly rest periods typically span 36 consecutive hours, extendable to 48 hours through scheduling adjustments. Night work (10 PM–6 AM) attracts a 20% premium for shifts exceeding 5 hours.

Holiday Provisions

Uruguay recognizes five paid statutory holidays: January 1, May 1, July 18, August 25, and December 25. Work on these days warrants double pay. Monthly salaried employees receive fixed compensation covering all holidays.

Employment Contracts and Probation Periods

While written contracts aren't mandatory, they're increasingly common. Contracts may be indefinite or fixed-term (for seasonal/temporary roles), with minimum 6-month terms under Decree 308/021.

Probation Period Guidelines

6–8 month contracts: 45-day probation
9–11 month contracts: 60-day probation
12+ month contracts: 90-day probation

During probation, employers may terminate without cause or severance. Post-probation dismissals require justification or compensation.

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Uruguay Labor Laws 2024: Working Hours, Overtime & Employment Contracts