Castellán

Since the beginning of the health emergency due to Covid-19 and the development of telecommuting as a form of employment, a large number of countries have approved special 'visas' to protect the situation of these workers, who choose to legally live and work remotely from abroad.

The case of Uruguay: The adopted migration solution 

In our country, a specific procedure was created to protect the situation of these workers and modified the applicable regulations in terms of migration procedures (approved by Decree 238/022). This is the 'Provisional Identity Sheet for Digital Nomads' (HIP ND), a temporary residence permit granted for a period of up to 180 days and whose authorization depends on the National Directorate of Migrations (DNM).

(i) The application for this document is done online (through the State's processing portal) and the approval of the procedure by the DNM takes approximately thirty days.

(ii) Once admitted, it is possible to schedule an appointment for the issuance of the Uruguayan document before the National Directorate of Civil Identification (DNIC). At this stage, the interested party must appear in person (with the original documentation).

(iii) Subsequently, the document is ready to be collected (either by the worker or by a duly authorized representative) within five business days.

Regarding the length of stay, it is possible to apply for an extension for another 180 days, thus completing one year in the country. To do this, a Criminal Record Certificate for the previous 5 years before entering Uruguay (from all addresses where the person has resided for more than 6 months) must be submitted. In addition, a Certificate is required to prove that the foreigner has received the minimum vaccines required by the Ministry of Public Health.

On the other hand, it should be noted that in December 2022 a bill was presented to Parliament proposing the approval of a new legal residence procedure applicable to these workers. Although the proposal (which is still under review) also involves a temporary residence, it extends the length of stay to two years, foreseeing its renewal -only once- for the same period.

Considerations on labor and social security matters 

Regarding the exercise of work activity, Law No. 18,250 provides that migrant persons will have equal treatment as nationals. In the same vein, its regulatory Decree No. 394/009 establishes that natural or legal persons who employ foreign workers in a dependent relationship in the national territory must comply with all current labor regulations.

However, in the case of digital nomads, the particularity lies in the fact that they are not employees of companies established or installed in the country. Nor is the activity they carry out 'for Uruguay', even if they are physically within the national territory.

In terms of social security, Decree No. 238/022 expressly states that digital nomads are not required to register with social security agencies. This is understood as they work 'for abroad' and therefore continue to make the corresponding contributions in their country of origin, thus avoiding double contributions.

However, there is a silence in the regulation regarding the labor regime applicable to these figures. That is, which legislation should be followed regarding the rights and obligations of the employment relationship, both in terms of salary and other working conditions.

On the other hand, the Promotion and Regulation of Telework Law (No. 19,978) does not explicitly cover these cases either. Its scope is limited to remote work carried out within the country, for companies based in the same country, and therefore does not contemplate the situation presented.

As a result, it is necessary to resort to the General Law of Private International Law (Law No. 19,920), which provides that in these cases the parties can freely choose the law applicable to the employment relationship, under the principle of autonomy of will.

Final reflection 

It is clear that the world of work must adapt to reality and in this sense, being our country an unquestionably attractive destination for foreigners, due to its political-economic stability and quality of life, we view positively that Uruguay considers the migratory situation of those people who choose geographic freedom, taking their work activity with them.

Montevideo, May 18, 2023.