During the year 2023, there were significant changes in the workplace in our country, which affected both individual and collective aspects of labor relations as well as administrative and social security issues.

Among the most relevant changes is the modification of our Collective Bargaining System through the approval of Law 20,145; updating the powers and powers of the General Inspection of Labor and Social Security (IGTSS) in inspection procedures; as well as the approval of the Retirement Reform under Law No. 20,130, among other important developments that will impact the world of work.

With the excuse of the year that is beginning, we propose to review them, including those that could have gone unnoticed:

1. Modification of our Collective Bargaining System

The new norm introduced significant changes to the Collective Bargaining Law of the private sector, collecting some of the observations made in 2010 by the International Labor Organization (ILO), based on the complaint timely presented by the Chamber of Industries and the Chamber of Business and services.

In substantial terms, five modifications were established, some of them with great relevance for collective labor relations ( https://bit.ly/3wgffxx ). For example, the possibility is enabled for workers collectively (when there is no union organization) to negotiate directly with their employer in the company, without interference from branch unions; and the automatic "ultraactivity" of the agreements is eliminated. Now, the duration or term of future agreements becomes an aspect that is clearly the responsibility of the parties. If a period of validity is agreed, the agreement will expire at the end of this period, unless the parties expressly agree otherwise. In addition, legal status is required for the exchange of information during negotiations.

2. IGTSS – MTSS inspection procedure

Since March 1, 2023, administrative procedures initiated before the IGTSS are governed by a new specific and faster procedure (Decree 371/022).

Among the changes introduced are new powers granted to labor inspectors during inspection visits, the regulation of the role of union delegates during them and the presentation of labor documentation to companies, electronically. In addition, the decree defines an inspection and procedural approach to cases of workplace and sexual harassment and includes the protection of non-specific personality rights of workers (art. 7 of the Constitution).

Finally, it is worth mentioning as a novelty with respect to the sanctions provided for the verification of non-compliance with labor standards, that for those infractions classified as “minor” a reduction of 30% of the fines imposed is established if they are paid within the following 10 days. upon your notification.

3. Social Security Reform and compatibility between employment and retirement

Law No. 20,130, known as the "Social Security Reform Law", establishes the creation of a new Common Pension System that is already in force and will be gradually implemented through a process of integration with the retirement and pension regimes. existing.

The rule maintains the structure of a mixed pension system (composed of contributions for intergenerational solidarity and private individual savings administered by the AFAPS), as well as the percentages of retirement contributions. However, one of the most important changes is, without a doubt, the gradual increase in the retirement age for people born after 1973.

From a business perspective, one of the most relevant aspects of the regulations also focuses on the compatibility between retirement and paid work activity , which makes it possible for older people to continue working, either as dependent or independent employees, on time. full or part-time, without affecting your right to receive retirement benefits (Decree No. 231/023).

4. Paid hours for pregnancy checks

Through Law No. 20,129, it was established that pregnant workers in both the public and private sectors have the right to be absent for up to four hours a month with pay to attend prenatal consultations.

Subsequently, effective January 1, 2024, an extension of said benefit to the spouses, common-law partners or partners of pregnant women was approved, so that they can accompany them during controls.

These workers now also enjoy four hours of free time per month, which must be counted as time worked and cannot be deducted from their salary. As a requirement to use the benefit, in both cases it is necessary to notify the employer at least two days in advance and present a certificate issued by the doctor. The regulations also contemplate the possibility of extending the hours of absence, in case of medical justification.

5. Adjustment to the teleworking regime in Free Zones

Accountability Law No. 20,212 (corresponding to fiscal year 2022), incorporated two adjustments to the remote work regime in Free Zones, which came into effect on January 1, 2024.

Through a modification to article 14 of the Free Zone Law No. 15,921, the Executive Branch was granted the power to establish the conditions and limitations for teleworking. Among the factors to be considered, the following must be taken into account: the distance between the worker's home and their usual place of work, the number of employees who depend on the Free Zone user, the importance of the associated investment, etc.

In addition, it is stipulated that teleworking may not be subject to a minimum number of dependent employees by the Free Zone user. This is surely the most important point for companies and implies a future modification to Decree No. 319/022 which indirectly determines a minimum number of workers on the payroll to make it viable for them to use the modality.

6. Modification to Employment Promotion regulations

The Accountability Law No. 20,212 also introduced modifications to the provisions of the Employment Promotion Law No. 19,973, particularly in relation to youth work.

The "I Study and Work" Program was expanded from the public sector to the private sector, aimed at young people between 16 and 20 years old in formal or non-formal education who seek to acquire their first work experience. Companies that participate in the program receive a monthly state subsidy for each worker hired, and if they decide to keep the employee on their payroll after the initial hiring period, they have access to exemptions on employer contributions until the worker reaches 25 years of age.

In addition, Law 20,075 modified the "Training Internships in Companies" regime, establishing that the minimum salaries in the sector must be respected in all contracting modalities (since it allowed hiring for 75% of the award of the category).

Despite these changes, the subsidies granted by MTSS to companies to encourage them to comply with the standard and its contracting modalities remain in force.

7. Occupational Risk Prevention Plan – companies between 5 and 50 workers

In 2023, Decree No. 52/023 was approved, which eliminated the obligation to implement Occupational Prevention and Health Services (SPST) for companies with between 5 and 50 employees (except in those cases in which risks are identified that require a special protection for workers and in which the IGTSS may require the implementation of the service).

As a counterpart to this “exoneration”, the obligation to prepare an Occupational Risk Prevention Plan carried out by a qualified technician (e.g. Prevention Technician) was established . This plan must be updated at least every 6 months, or when there are changes in working conditions, production process, etc. It must have a clear identification of hazards, risk assessment, proposed corrective measures, compliance schedule, etc.

The exhibition of the plan is required during inspections by the agency or when companies are ordered to present it. It is expected that in the coming months the agency will begin monitoring compliance with this regulation.

8. Tips electronically

Law No. 20,243, approved in December 2023, establishes the right of every employee who performs functions in which it is common to receive tips, to have them transferred through digital payment systems.

For these purposes, the employer will be obliged to provide customers with the option of adding tips to the total amount of the transaction, using the same electronic payment method used to purchase the service or product.

The above is, without prejudice to clarifying that the possibility of receiving cash tips persists, regardless of the payment method chosen by the client to pay for the product or service. Along the same lines, financial institutions in the payment system must adopt the necessary measures to guarantee the correct application of the standard, and the charging of commissions, surcharges or discounts on funds that come from this concept is prohibited. 

Finally, it is important to highlight that the regulations establish that the employer cannot dispose of tips or determine the way in which they are distributed among the staff, leaving this definition exclusively in the hands of the workers.

9. New criteria for salary adjustments in foreign currency

In November 2023, the Ministry of Labor and Social Security established a new criterion for the application of adjustments to salaries that are agreed in foreign currency. The same will apply as long as there is no different solution through Salary Councils.

The new procedure (which replaces the criterion determined in 2009) involves making a comparison, converting the salary in foreign currency to Uruguayan pesos and applying the increase according to the percentage established by the Salary Councils of the sector of activity.

The biggest difference is that now the evolution of the average exchange rate of the months in which the adjustments are made must be considered. Once the comparison has been made, if the percentage variation in the salary is less than the adjustment provided by the Salary Council, a complementary percentage adjustment will be applied until it is equal to the percentage adjustment of the salaries agreed in pesos.