Global EOR Services in Uruguay
Find, Hire & Pay Employees in Uruguay
Global Employer of Record (EOR) services in Uruguay offer a seamless solution for companies aiming to hire employees in the region without setting up a local legal entity. By managing compliance, payroll, taxation, and employee benefits in accordance with Uruguay regulations, Global EOR services enable businesses to focus on growth while navigating the complexities of local labor laws with ease.
Why Use Global EOR Services in Uruguay?
An Employer of Record (EOR) in Uruguay enables foreign companies to hire employees without setting up a local legal entity. The EOR:
Acts as the legal employer
Drafts and signs employment contracts under Uruguayan law
Registers employees with social security (BPS)
Processes payroll in UYU and manages statutory withholdings
Administers statutory benefits (health, pension, unemployment, etc.)
Files taxes and reports to government agencies
Ensures compliance with labor laws and collective bargaining agreements
Manages legal terminations, severance, and labor claims
Uruguay: A Country Overview
Uruguay, located in South America between Brazil and Argentina, is known for its political stability, modern infrastructure, and progressive labor and social policies. The country has a high standard of living, well-developed service sectors, and is increasingly attractive for foreign investment. Key industries include agriculture (beef, soy, rice), forestry, technology, and logistics.
Uruguay offers strong protection of property rights, transparent institutions, and a highly educated workforce, making it a favored destination for regional headquarters, tech hubs, and back-office operations.
Capital: Montevideo
Currency: Uruguayan Peso (UYU)
Population: ~3.5 million
Official language: Spanish
Main industries: Agriculture, forestry, IT services, logistics, renewable energy, tourism
Main exports: Beef, soy, dairy products, cellulose pulp, rice
Main trading partners: China, Brazil, EU, Argentina, USA
Employment Policies and Standards in Uruguay
Employment Contracts
Contracts may be verbal or written (written strongly recommended).
Types: Indefinite-term (default), fixed-term (for specific tasks/duration, must be justified).
Collective bargaining agreements (CBAs) apply in many sectors — must be observed.
Working Hours
Standard: 8 hours/day, 44-48 hours/week (depending on sector).
Overtime: Paid at 2x normal rate (or 2.5x on holidays and rest days).
Leave Entitlements
Annual leave: 20 calendar days after 1 year (increases with seniority: +1 day every 4 years of service).
Public holidays: ~12 national holidays (paid).
Sick leave: Paid through social security (BPS), usually after 3rd day.
Maternity leave: 14 weeks (6 before and 8 after birth) — 100% pay (via social security).
Paternity leave: 10 calendar days (paid).
Special leaves: Bereavement, marriage, union activity (as per law/collective agreements).
Payroll, Taxes & Contributions
Personal Income Tax (IRPF): Progressive, up to 36%
Employer contributions (approx % of gross salary):
Pension: 7.5%
Health: 5%
Labor reconversion fund: 0.125%
Occupational risk insurance (variable)
Labor credit guarantee: 0.025%
Employee contributions:
Pension: 15%
Health: 3%-8% (depending on dependents)
Labor reconversion fund: 0.1%
Payroll must be processed in UYU through local bank accounts, with payments to BPS and tax authority (DGI).
Health & Safety
Employers must:
Ensure a safe working environment (Law 19.161)
Provide health and safety training
Implement workplace accident prevention measures
Insure workers for occupational risks
Termination & Severance
Indefinite-term contracts:
Can be terminated without cause (but severance is due unless gross misconduct proven).
Severance: 1 month’s salary per year of service (prorated), up to 6 months maximum.
Notice period: Not required, but immediate payment of severance applies.
Fixed-term: Severance owed if terminated before term, except for cause.
Non-Discrimination
No discrimination allowed on grounds of gender, race, religion, political opinion, union membership, age, disability, or sexual orientation.
Equal pay for equal work is enforced.
Opening a Legal Entity in Uruguay
Foreign companies may establish:
Sociedad Anónima (SA) – most common for larger operations
Sociedad de Responsabilidad Limitada (SRL) – common for SMEs
Branch office – foreign company extension
Process
Reserve company name
Draft and register bylaws
Obtain taxpayer ID (RUT) from DGI
Register with BPS, Ministry of Labor, and local municipality
Open local bank account
Timeline: Typically 6–8 weeks
Popular Global EOR Providers Supporting Venezuela
(They often partner with in-country firms for local compliance.)
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