Puerto Rico Labor Laws and Employment Policies Overview

Employment Law Overview

• Key Legislation:
  • Puerto Rico Labor Code
  • Puerto Rico Workers' Compensation Act
  • Puerto Rico Social Security Act
• Legal Characteristics:
  • Aims to protect employee rights and benefits
  • Sets standards for minimum wage, working hours, vacations, and severance pay

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Provisions:
  • Must include details on job description, compensation, working hours, termination conditions, etc.
• Language and Currency:
  • Contracts can be in Spanish or English
  • Currency is the US dollar

Working Hours Regulations

• Standard Working Hours:
  • 40 hours per week, 8 hours per day
• Rest Days and Breaks:
  • Minimum of 24 hours of rest per week
  • Minimum of 30 minutes of rest per day

Vacation Policy

• Annual Leave:
  • 6-15 days per year, depending on years of service
• Public Holidays:
  • 18 official public holidays
• Special Leaves:
  • Sick leave: 12 days per year
  • Maternity leave: 8 weeks paid leave
  • Paternity leave: 5 days unpaid leave
  • Parental leave: 12 weeks unpaid leave

Employee Severance and Contract Termination

• Notice Period:
  • No mandatory requirement
• Severance Pay:
  • Employees dismissed without just cause are entitled to severance pay
  • Severance pay is based on years of service, up to a maximum of 36 weeks of wages
• Unfair Dismissal Protection:
  • Employers must have just cause to dismiss an employee

Taxation

• Personal Income Tax:

  • Salary Range (USD)	Tax Rate
    0 - 9,000	0%
    9,000 - 25,000	7%
    25,000 - 41,500	14% +1,120USD
    41,500 - 61,500	25% +3,430USD
    61,500+	33% +8,340USD

• Social Security Contributions:

  • Employee: 7.65%
  • Employer: 13.75%

Health Insurance

• Insurance Policy:
  • Employees must participate in the government-provided health insurance plan
• Coverage:
  • Basic medical services

Compensation and Benefits

• Minimum Wage:
  • $1,160 per month
• Compensation Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Foreigners require a work permit or visa
• Application Process:
  • Apply through the United States Citizenship and Immigration Services (USCIS)

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Puerto Rico
• Common Provisions:
  • Prohibiting disclosure of confidential information
  • Prohibiting employment with competitors for a specified period

Training and Development

• Legal Requirements:
  • Employers must provide safety training
• Government Support:
  • Government provides training grants

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, etc.
• Enforcement Measures:
  • Employers must establish anti-discrimination policies

Remote Work Policy

• Legal Framework:
  • Remote work is permitted
• Tax and Insurance Implications:
  • Remote work may impact taxation and social security contributions

Authoritative Website Addresses

• Puerto Rico Department of Labor and Human Resources: https://www.trabajo.pr.gov/