Puerto Rico: Termination of employment

Original authors: Shiara Diloné-Fernández, Elizabeth Pérez-Lleras, Littler.

Updating author: Edwin J. Seda-Fernández, Adsuar Muñiz Goyco Seda & Pérez-Ochoa, P.S.C.

See the legal services provided by the authors of International > Puerto Rico, including any discounts/offers for subscribers.

Summary

• Under Puerto Rico law, an employer may terminate the employment of an employee recruited on an indefinite basis only for "just cause". (See General)
• Neither federal nor local law requires employers to give employees advance notice of termination, or payment in lieu of notice, except in certain cases. (See Notice periods)
• Local statute stipulates the circumstances that may constitute "just cause" for dismissal - these relate either to the employee's conduct/performance or to the employer's operations/business. (See Just cause for dismissal)
• If an employer dismisses a relevant employee without "just cause", the employee is entitled to receive statutory compensation from the employer, based to the employee's length of service and salary. (See Unjustified dismissal)
• Constructive dismissal is considered to be a termination without "just cause", entitling the employee to receive statutory severance compensation. (See Constructive dismissal)
• Various redundancy-related circumstances constitute "just cause" for dismissal, and a number of statutory rules govern selection for redundancy and the preferential re-employment of redundant ex-employees in the six months after their employment is terminated. (See Redundancy)
• Private-sector employees are not required by law to retire at any age, and employers must not generally oblige employees to retire because they have reached a particular age. (See Retirement)
• Other than in cases of dismissal without "just cause", employers are not required by federal or local law to make severance payments when employees' employment is terminated. (See Severance payments)
• Local law places few restrictions on "separation agreements", stating the terms of the termination and providing for the employee to receive severance benefits. (See Separation agreements and releases)
• An employee who believes that they have been dismissed without "just cause" may bring a claim for severance compensation against the employer, while an employee who believes that they have been dismissed on grounds such as unlawful discrimination or retaliation may seek remedies including reinstatement and damages. (See Contesting dismissals)