Governor Backs Off from Expanding Labor Reform

News Admin

On March 28, 2018, Governor Ricardo Rosselló withdrew his latest labor reform proposal.   The announcement was made in response to the Puerto Rico Financial Oversight and Management Board’s rejection of the Government’s latest financial plan.  Gov. Rosselló’s latest labor reform proposal included a series of initiatives to further expand the labor reform rolled out in late January of 2017.  The proposal included, among other measures, the reduction of vacation time accrual, the elimination of the Christmas’ Bonus and the severance pay for wrongful discharge, as provided under Law 80 of 1976, as amended.

As the Government’s development of a financial plan is an ongoing process, it is likely that these proposals and cost cutting measures that may impact the private employment area will continue to be revisited.  We will keep you posted.

For more information, please contact attorneys Carmen Lucía Rodriguez and Gerardo Hernández.

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