Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
International expansion is the perfect gateway to new markets, revenue growth, and strategic partnerships. However, navigating a foreign country’s employment and tax regulations can be challenging. Do you plan to expand your business into Uruguay? Employer of Record services may be the support you need to expand quickly and safely. An Employer of Record in Uruguay can help you establish a presence in the country without setting up a legal entity or branch office.
Employer of Record (EOR) services handle the complexities of payroll management, tax compliance, employment contracts, hiring and firing, social security management, employee benefits and insurance, and regulatory and employment law compliance in Uruguay.
With a high-quality EOR or PEO (Professional Employer Organization) partner, you can have peace of mind knowing that your operations are lawful in Uraguay.This freedom allows companies to channel valuable time and resources into core business activities that drive growth.
With an EOR in Uruguay, you can be confident that all your employment practices align with local laws and regulations.
Avoid the time and capital cost of incorporating a subsidiary or branch office in Uruguay. EOR services offer a cost-effective and efficient solution for entering the Uruguayan market swiftly with minimal administrative burden.
Concentrate on expanding your business and seizing growth opportunities by outsourcing talent acquisition, benefits administration, and payroll management to an expert EOR in Uruguay.
Operating in a foreign market is inherently risky. But an EOR partner like INS Global bears your employment-related risks and gives you stability and peace of mind as you do business in Uruguay.
Leverage our understanding of the local market, industry-specific challenges, and best practices to optimize your expansion efforts in Uruguay and 100+ countries globally.
EOR services help companies simplify their international expansion effort by eliminating the need for establishing a legal entity or branch office in Uruguay by hiring staff on your behalf through a preexisting company structure.
In addition, EOR services guarantee compliance with Uruguay’s labor laws and market regulations and policies. These measures help to protect your brand’s reputation and save time and cost expenses that can accrue when navigating complex legal and tax frameworks.
This streamlined approach encourages business dynamism and adaptability as you seize new opportunities in Uruguay.
Hence EOR services are a great choice for companies in these scenarios:
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately.
Partnering with an EOR in Uruguay like INS Global is simple and efficient. You can conclude such agreements in 4 steps:
An Employer of Record (EOR) and a Professional Employer Organization (PEO) in Uruguay are similar services but with some particularities.
For example, an EOR acts as the legal employer of your staff in Uruguay, handling payroll, tax compliance, HR administration, and employment contracts on your behalf. It assumes full responsibility for your employment matters while you focus on core business.
In contrast, a PEO provides a co-employment arrangement, sharing employer responsibilities with you. While PEOs offer HR support and administrative services, your company remains the legal employer.
Therefore, EOR services are great for mitigating risks and for flexible and quick market entry, while PEO arrangements ensure you are fully compliant will all HR requirements in your target market.
Uruguay’s Labor Code requires an employment contract for formalizing a working relationship. Although these contracts can be written or verbal, we recommend written agreements to minimize the potential for misunderstandings or disputes.
Employers should write the contract in Spanish and use the Uruguayan peso as payment currency.
The country’s law recognizes these 2 employment contract types:
The standard probationary period in Uruguay is 3 months.
Employers in Uruguay can terminate a worker’s contract, but must provide a 1 week notice and make a severance payment equaling an employee’s 1 month salary for every service they spent at the company. However, severance pay caps at 6 months and employers can forgo such payments if an employee is dismissed for improper behavior or misconduct.
The standard working week in Uruguay is 44 hours, or 8 hours daily. Although, employees in the industrial sector may be required to work 48 weekly. All work above 44 hours a week is considered overtime and by the employment contract or collective bargain agreements (CBA).
Workers in Uruguay are entitled to a 1-hour break daily, and the government mandates a general minimum wage of UYU 21,106.00 (Uruguayan peso).
Employees in Uruguay are entitled to a 13th-month salary or annual bonus. The bonus equals one month’s salary should be paid in two installments; one in June and another in December.
Employees in Uruguay are eligible for paid leave on the country’s 11 nationally recognized public holidays:
Employees in Uruguay are entitled to 20 days of paid leave annually. For every 4 years of work with the same employer, employees get 1 additional day of holiday (capped at 25 days).
Employees in Uruguay can receive paid sick leave for the first 3 days of absence. An employee is paid 70% of their wages by the social security agency in Uruguay known as the BPS (Banco de Previsión Social).
Female employees in Uruguay are entitled to 14 weeks paid maternity leave, consisting of 6 weeks of prenatal leave and 8 weeks postnatal, paid by the BPS.
Male employees get 13 days of leave from the day of childbirth. The employer pays the first 3 days, and the rest days are paid by the BPS.
The social security system in Uruguay is comprehensive and covers retirement pensions, health insurance, sick pay, and unemployment insurance.
Social Security contributions are mandatory for both the employer and the employee. They are based on the salary earned, including bonuses and commissions.
Employer and employee contributions are described below:
Contributions | Employer rates (%) | Employee rates (%) |
Retirement | 7.5 | 15 |
Health insurance | 5 | 3 – 8 |
Labour Restructuring Fund | 0.1 | 0.1 |
Labour Credit Guarantee Fund | 0.025 | 0 |
Uruguay levies individual income tax on resident and non-resident individuals at progressive rates, from 0% to 36%. Individuals earning below UYU 475,440 (Uruguayan peso) annually are income-tax exempt.
Uruguay’s income tax on non-resident individuals vary 7 to 25%.
The corporate tax rate in Uruguay is 25%.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
Expanding into Uruguay can take 4-12 months when incorporating a new subsidiary. However, using an established EOR can expedite the process to under a month.
The price of professional EOR services in Uruguay is a percentage of the worker’s monthly compensation. This price covers the management of all HR-related tasks required to ensure compliance with local employment laws.
Yes. An EOR in Uruguay is a safe, legitimate, and efficient way to handle employer responsibilities without establishing a specific corporate structure.
A professional EOR service can guarantee the following:
Independent contractors in Uruguay who interact with their clients within an EOR framework will retain full control of their work and may be eligible for regular employee benefits.
Absolutely. Our team of recruitment consultants experts can find the best local talent in Uruguay for your needs. We utilize our professional networks, in-depth knowledge of regional business practices, and commitment to ethical hiring practices.
Yes. An Employer of Record can tap into its online or offline pool of professional networks to help you find workers in various cities or regions within Uruguay. An EOR handles headhunting, interviews, and candidate selection in specific cities or regions in Uruguay, depending on your needs or preference.
You can employ however many or few employees you need to achieve your goals. Unlike some PEO or EOR service providers, INS Global has no minimum or maximum hiring requirement. We recognize that this flexibility can favor your business strategy in Uruguay, allowing you to scale up or down quickly at any time.
The option for your employees to work in a shared workspace is a good idea. But using a PEO service in Uruguay eliminates the need for a local business address.
Absolutely. We can manage the necessary visa and work permit processes for foreigners in Uruguay. Also, we can handle situations where the local employment laws, tax laws, or employee benefits differ for Uruguayans and foreigners.
EOR and PEO solutions help to streamline international expansion for enterprises of all sizes, from SMEs to multinational corporations. These HR-related solutions ensure the efficient and secure employment of foreign or local workers.
You can use staffing firms or umbrella corporations as third-party options for hiring independent freelancers in Uruguay directly.
The cost of hiring in Uruguay should factor expenses like salary, recruiting service fees, signing bonuses, and other direct and indirect expenses, including annual bonuses, foreign employee tax management, and social security contribution payments.
Employers in Uruguay manage payroll for all workers, usually at the end of every month. Employers are responsible for withholding and remitting amounts corresponding to employees‘ income tax and social security contributions.
The government mandates a general minimum wage of UYU 21,106.00 (Uruguayan peso) per month.
In Uruguay, several visa types are available for employees based on their specific circumstances and purposes of stay. These common visa types for employees include:
In Uruguay, employers are responsible for organizing and withholding employees‘ income tax payments and social security fund contributions every month.
Employees in Uruguay are entitled to a state pension, a 13th-month bonus, public holidays, paid leave (sick leave, annual leave, and parental leave), and health insurance.
Unilateral changes to an employee‘s contract are not permitted in Uruguay. Both parties must agree upon changes to an employee‘s working conditions.
The healthcare system in Uruguay is known as the National Integrated Health System (Sistema Nacional Integrado de Salud, SNIS). It aims to provide comprehensive healthcare services to all residents of Uruguay, including both citizens and legal residents. The system is funded through contributions from employers, employees, and the government.
Employers in Uruguay can terminate a worker’s contract but must notify the employee at least 1 week in advance and make a severance payment equaling an employee’s 1-month salary for every service they spent at the company.
The Ministry of Labor and Social Security (Ministerio de Trabajo y Seguridad Social) is responsible for regulating labor regulations in Uruguay.
Employees in Uruguay are eligible for paid leave on the country‘s 11 nationally recognized public holidays.
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