The new year, 2017, has brought significant changes to Puerto Rico employment laws. The changes are due to a new government administration and the enactment of the “Labor Transformation and Flexibility Act.”
The changes Puerto Rico employers need to be aware of are:
- New definition of employment contract;
- New vacation leave accrual;
- Regulations on the assignment of expatriates to Puerto Rico;
- Changes in statute of limitations;
- New religious accommodation requirements;
- New way of calculating daily overtime, meal penalties, and seventh day of work pay;
- Flexible work schedules;
- Changes to the Christmas bonus;
- Substantial changes to the Closing Law applicable to retail employers;
- New severance formula for terminations without just cause; and
- Changes to the employment probationary period.
If you have employees in Puerto Rico, have you revised your employee handbook to reflect these changes? If your answer is NO, HR Works, Inc. can help. We have developed a set of legally-compliant, attorney-reviewed Puerto Rico handbook policies and can work with you to add them to your handbook or update your existing policies.
HR Works Virtual HR Helpline clients should contact the helpline (585-381-8340 x1 firstname.lastname@example.org) if you have any questions.