Doing Business in Puerto Rico Blog: Business Coaching, News & Developments

MATERNITY LEAVE IS PAID BY EMPLOYERS

Pregnant working women in Puerto Rico are entitled to a rest period that includes four (4) weeks before and four (4) weeks after childbirth.

The working woman may opt to take only one (1) week of prenatal rest and extend up to seven (7) weeks the postnatal rest she is entitled to, provided she presents a medical certification to her employer showing that she is able to work up to one (1) week before childbirth.

Every female worker who adopts a preschool-aged child, that is, a child who is five (5) years of age or less and is not registered in school pursuant to the legislation and legal procedures in force in Puerto Rico, shall be entitled to the same benefits under the maternity leave as a female worker has who gives birth to a child. In said case, the leave shall start to count as of the date in which the child joins the family unit.

In order to claim said right, the female worker must notify the employer at least thirty (30) days in advance [of her intention to adopt a child, plans for maternity leave and reinstatement to her job.

Furthermore, she shall submit evidence to the employer of the adoption procedures issued by a competent organization.The employer shall pay the working mother during said rest period her full salary, wages, day wages or compensation that she has been receiving for her work.

This payment shall be made at the time the employee begins to enjoy her maternity leave or maternity by adoption leave. Provided, That the average salary, wages, day wages or compensation that she has been receiving during the six (6) months prior to commencing her rest period shall be used as the basis to compute her full salary, wages, day wages or compensation; or, if it is not possible to apply said six-month period, the salary, wages, day wages or compensation the working woman was earning at the time she began to enjoy the leave or special rest period approved by law.

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.

WORKERS VACATION LEAVE UNDER PUERTO RICO LAW

Under Act No. 180 of July 27, 1998, employees in Puerto Rico accrue vacation leave at a rate of one and one quarter (1 ¼) days each month, provided that they work no less than one hundred and fifteen (115) hours a month.

For the accrual of said benefits, the use of vacation leave shall be deemed as time worked, Vacation leave 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 employees who receive commissions or other incentives that are not at the full discretion of the employer, the total commissions or incentives earned for the year can be divided between fifty-two (52) weeks, to compute the regular hourly wage. Vacation leave shall be granted annually but an employee cannot claim the leave until it has accrued for one year.

The employer can schedule the leave in such a way as not to disrupt the normal operation of the enterprise; but leave shall be enjoyed consecutively, unless through an agreement between the employer and the employee, it is apportioned, provided that the employee enjoys at least five (5) consecutive working days of vacation leave during the year.

The employer and the employee may agree to allow up to two (2) years of vacation leave to be accrued. An employer, who fails to grant leave after accruing the maximum, must grant the total leave accrued to date, and pay the employee twice the corresponding salary for the period in excess.  The employer may allow the partial liquidation of accrued leave in excess of ten (10) days upon written request of the employee. In the event the employee terminates his/her employment, the employer must pay the employee the total leave accrued to such date, even though it is less than a year.

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 of vacation higher or lower than what 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.