Uruguay: Government extends flexibility for unemployment insurance to all sectors

The Ministry of Labor has extended the partial unemployment benefit, announced Wednesday for sectors of commerce and some services, to the rest of activity areas. The purpose is to make conditions for access to partial benefits more flexible, so that workers paid by month can access them.

The mechanism is for all employees with fixed or variable monthly remuneration covered by the Social Security Administration (Banco de Previsión Social - BPS).

Partial unemployment

Workers must be in a situation of partial suspension of their activities. Suspension takes place when during one month workers are subject to a reduction of work days by a minimum of six working days or when the total hours of their regular working hours are reduced by 50% or more of the legal or usual number during normal periods. 

Workers must meet the other requirements established by the Unemployment Insurance Law, such as the requirement that in the 12 months preceding the grounds for benefits they must have been on the payroll for a total of 180 days, and in the case of day workers, they must have worked a total of 150 days. These periods may be accrued in one or several industrial or commercial companies affiliated with BPS.

Amount of benefit

The amount of the benefit is 25% of the monthly average of computable nominal remuneration collected in the six months immediately preceding existence of grounds for benefits. The ultimate amount to be collected will be calculated in proportion to the period of time covered by the benefit.

Remuneration to be taken into account includes that generated by activities in connection with which benefits are generated.

Payment of benefits will not be subject to conditions regarding leave not taken by the worker.

Special situation

The mechanism takes into account the special situation of workers who at March 18, 2020 are not entitled to benefits. This situation may be due to their previously having collected layoff benefits for the maximum term (4 months), without 12 months having gone by since the last benefit was collected.

The Resolution affords them the possibility of coverage by partial unemployment insurance, provided they meet the requirements mentioned (reduction of activity and minimum computation period). 

Term

The Resolution shall be effective for a term of 30 days, extendible by the Executive Branch for a like period.