Increased Liability under PR's Wrongful Discharge Law

Employers in Puerto Rico are now subject to stiffer  penalties when discharging workers without cause.  Act No. 128 of October 7, 2005, raised the statutory indemnity assessed to an  an employer when it  is deemed to have wrongfully discharge a worker.

Wrongfully discharge workers will be entitled to receive from their former employer two months pay if the discharge occurs within the first five years of employment; three months if it occurs between the fifth and fifteenth year and; six months after fifteen years of service.

In addition,the worker will  receive an additional week of pay for every year of employment -if the discharge occurs within the first five years of employment; two week's pay for every year of employment after the fifth and before the fifteenth year and; three weeks pay per year after fifteen years of service.

The salary used to calculate the indemnity will be the highest salary during the last three years of employment