Labor issues

Individual labor relationships are regulated by the agreement between the employer and the employee and by the labor legislation which establishes a variety of inalienable rights (limited working hours, supplementary annual salary, vacation bonus, annual and special leaves, severance pay, among others).

It is possible to establish temporary labor contracts for pre-determined periods (e. g. civil construction period). The labor contracts are not formally regulated, but in case of temporary labor relationships must be in writing.

The collective bargaining between employees, employers and government by industry (not by company) is regarded as one of the most critical factors affecting the direction of labor relations.

Key matters for collective bargaining are salary issues such as mandatory minimum salary for each category, increase rate, wage scheme, etc., as well as non-salary controversial relevant topics such as occupational health and safety, labor conflict resolutions, among others.

In particular, with the aim of preventing the labor conflicts that may arise during UPM pulp mill construction and operation phases, the Uruguayan Government issued a Resolution that lays down conflict prevention and settlement mechanisms that must be adopted by contractors and suppliers (both employers and employees), before taking any action that may affect the regular development of working activities.

Working protocols for UPM pulp mill construction phase have been approved. These regulate relevant topics related to housing, transport, food of contractor´s employees, safety and security conditions and employee training.

Affiliation to the social security system is mandatory in Uruguay. The social security system covers risks related to invalidity, retirement, sickness, maternity/paternity leave, unemployment and death

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