Castellán

In line with the objectives of Laws No. 19,691 and 19,689 that we previously reported on (https://www.castellan.com.uy/es/noticias/59/insercion-laboral-de-personas-con-discapacidad-en-el-sector-privado.html and https://www.castellan.com.uy/es/noticias/58/actualizacion-normativa-en-materia-laboral-y-de-seguridad-social.html), the regulations addressed in this document seek to facilitate the entry and reintegration into the labor market of people in vulnerable situations by promoting their training and professional development, and at the same time favoring the reactivation of employment in the private sector following the decline in activity due to the pandemic.

What requirements must companies meet?

In order to access the benefits, employers must be in good standing with BPS, DGI, and MTSS; they must not have unilaterally terminated labor contracts or sent workers with the same job category as the one they intend to hire to unemployment benefits within the 90 days prior to hiring (or during the duration of the contract).

The regulations apply to all private sector companies, except for those registered with BPS as service users and personnel suppliers (except for those workers not assigned to temporary services for third parties, who are included).

What benefits are provided?

Employers who hire workers under this framework will receive monthly subsidies for the payment of special social security contributions, which will be made effective through credits to be paid to BPS. The amounts and/or percentages of the subsidy vary depending on the different modalities described below.

Types of hiring

1- Young people:

Four hiring modalities are provided (with specific requirements such as the age of the workers, contract duration, amount of subsidy granted, etc. varying depending on the case), these are:

- first work experience: focused on young people without previous work experience;

- work practice for graduates: aimed at individuals with previous training seeking a first job related to their degree;

- temporary subsidy for unemployed young people: for individuals in continuous unemployment for more than 12 months, or discontinuous unemployment for more than 15 months (in the 24 months prior to hiring); and

- protected work: benefiting young people in unemployment situations from households with incomes below the poverty line.

Additionally, there is the option to carry out training practices in companies, as part of educational courses and professional training provided by educational institutions, with the aim of deepening and applying the knowledge acquired by the trainee in the labor market.

2- Over 45 years old:

For those who hire workers over 45 years old, two alternatives are regulated:
- temporary employment subsidy: for individuals in continuous unemployment for more than 12 months, or discontinuous unemployment for more than 15 months (in the 24 months prior to hiring); and

- protected work: aimed at individuals who are unemployed and also belong to households with incomes below the poverty line.
In both cases, contracts must be between 6 and 12 months, with the percentages and amounts of subsidies granted varying depending on whether the hired person is male or female, if they have dependents, if a part-time or full-time work schedule is agreed upon (up to the maximum established in the sector), etc.

3- People with disabilities:

The MTSS is empowered to grant a temporary subsidy to those who hire people with disabilities, in continuous unemployment for more than 12 months, or discontinuous unemployment for more than 15 months in the 24 months prior to hiring. Contract periods can range from 6 to 12 months. Like the other hiring modalities provided, subsidy amounts may vary depending on whether the hired person is male or female, if they have dependents, and if a part-time work schedule is agreed upon, etc.
It should be noted that the hired person under this scheme must be registered in the National Registry of Persons with Disabilities of MIDES

What other conditions must contracts meet?

In all cases, the minimum contract period must be at least six months, with a workload of at least 20 hours per week. It is possible to establish trial periods that may vary depending on the total duration of the contract.

A particularity is that, in case the hiring is terminated unilaterally by the employer after the trial period but before the contract end date, a tariffed dismissal compensation must be paid, calculated as if the contract had been of indefinite duration. This solution avoids possible claims from the worker for \"lost wages\" (salaries) that would have been generated until the original end date.

Furthermore, the maximum percentage of hiring that companies can carry out (cumulative among the different modalities provided in the law, in order to benefit from the incentives) is 20% of their permanent staff.

The possibility of hiring individuals who are relatives of the company's owner or owners within the fourth degree of consanguinity or second degree of affinity is excluded, as well as those who are currently active in BPS as workers or owners of other companies at the time of hiring.

Finally, it is important to note that contracts must be approved by the MTSS, so we suggest submitting requests at least 15 business days prior to hiring. The process is carried out through the Vía Trabajo Platform (http://viatrabajo.mtss.gub.uy/viatrabajoweb/servlet/inicio) by registering the employer, the worker, and submitting the required documentation.

Montevideo, November 1, 2021.