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02/27/2007

WORKERS' SICK LEAVE UNDER PUERTO RICO LAW

Under Act No. 180 of July 27, 1998, employees in Puerto Rico accrue sick leave at a rate of one  day each month, provided that they work no less than one hundred and fifteen (115) hours a month.

The law specifically states that the enjoyment of sick leave does not excuse compliance of those standards of conduct validly established by the employer, such as atten­dance, punctuality, medical certificates if the absence exceeds two (2) working days, and periodic reports on the continued illness.

For accrual purposes, the use of sick leave shall be deemed as time worked, and shall be paid on the basis of an amount which is not less than the regular hourly wage earned by the employee in the month the leave was accrued. For individuals with variable wages such commissions  other compensation structures that are not at the full discretion of the employer, the regular hourly wage is computed by dividing  by fifty-two (52) weeks the total commissions or incentives earned during the year.

Sick leave not used by the individual during the year will accrue for subsequent years up to a maximum of fifteen (15) days.

Before Act No. 180 became law, vacation, sick leave and other benefits were regulated by a system of wage orders known as “mandatory decrees”. Employees accrued leave depending on the industry the employer belonged to. There were numerous decrees with different rates of vacation accruals.

The new law took into account this situation and provided  that employees covered by a decree as of August 1, 1995 with accrual rates  higher or lower  than what was provided by the new law would continue under the same terms of the decree. The enjoyment of the higher benefit continued for as long as an employee continued to work for the same employer.

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