Governor Announces Intent to Expand Labor Reform

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Earlier this week, Governor Ricardo Rosselló announced a series of initiatives he seeks to present to the Island’s House of Representatives and Senate, which include measures directed to further expand the labor reform rolled out in late January of 2017. In essence, the Governor’s proposal will further transform the labor landscape of the Island, as it takes upon the core principles of our current system.

The reform as proposed will have a direct impact upon the employment of private sector employees, as it calls for:

  • The elimination, within the next three (3) years, of Puerto Rico Act 80, which provides protection to private sector employees against unjustified termination of their employment;
  • A reduction of the vacation and sick leave from fifteen (15) days a year to only (7) seven days per year;
  • The elimination of the Christmas bonus requirement for private entities employees;
  • An increase in the minimum salary, which would start in in 2019 from $7.25 to $7.75;
  • An additional increase of 50 cents in the minimum salary is projected to take place, two years later, on 2021, raising the minimum salary up to $8.25

For more information on the proposed amendments to Puerto Rico employment laws, please contact attorneys Carmen Lucía Rodriguez and Gerardo Hernández.

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