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Employment Termination in Puerto Rico

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Termination process

In line with Puerto Rico’s Unjust Dismissal Act, permanent employees (i.e. those employed on an indefinite-term contract) can only be terminated for “just cause” otherwise, they’ll be entitled to severance pay by the employer.

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Notice period

There’s no mandatory notice period in Puerto Rico.

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Severance pay

Severance benefits in Puerto Rico are determined by when an employee was hired, that is:

  • Severance for workers employed on or before 26 January 2017 is equal to three months’ pay plus two weeks’ pay for each year of service.
  • The same calculation applies to workers hired after 26 January 2021 although their severance compensation is limited to nine months’ pay.
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Probation periods

Probation periods in Puerto Rico range from nine months for general employees to 12 months for managerial positions and executives.

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