Special temporary unemployment benefit scheme

Within the framework of the health emergency decreed by the Executive branch of government in the face of the Coronavirus pandemic (COVID-19), the Minister of Labor and Social Security issued today, March 18, 2020, Resolution 143/2020, which creates a Special Unemployment Subsidy Regime, for the following sectors of the activity: commerce in general; food retail trade; hotels, restaurants and bars; cultural and leisure services and travel agencies.

This Special Regime benefits workers in the aforementioned sectors who are in a situation of partial suspension due to: (i) reduction in the number of days of work per month, with a minimum of six wages per month; or, (ii) have had to reduce by 50% or more the number of usual hours of work. In both cases, the Worker must appear on the work control form for at least six months from the request for the subsidy.

The benefit has a term of 30 days from March 18, 2020, which can be extended by the Executive branch of government for another thirty days.

It consists of a benefit of 25% of the monthly average of the worker’s wages received in the last six months.

It covers workers who: (i) have the right to common unemployment insurance; (ii) are currently pursuing common unemployment insurance; and even (iii) have exhausted the common unemployment insurance.

In the first case, the Worker can take advantage of this Special Regime and, once it has expired, take the benefit from the Common Regime.

In the second case, the Worker can suspend the Common Regime that he currently benefits, avail himself of the Special Regime and, once this is finished, restart the collection of the common insurance pending.

In non case can the Worker benefit simultaneously from both regimes. The Special Subsidy must be requested for the Banco de Previsión Social and it is the obligation of the Company to complete and provide the employee with all the documentation so that they can manage the collection of the benefit.

This communication does not pretend an exhaustive analysis of the matter and each case must be assessed punctually, taking into account the particularities of each one. With the firm hope of transmitting information that may be useful to you, we remain at your disposal to answer your doubts, via e-mail to (consultas@estudiomezzera.com.uy)

Dr. Rodolfo Mezzera
rma@estudiomezzera.com.uy