Important Reminder: New Labor Reform Becomes Effective July 20, 2022
As discussed in our previous June 22, 2022 Alert “Act 41-2022 Reverts Provisions of the 2017 Labor Reform and Expands Workers' Rights”, Puerto Rico Act No 41-2022 (“Act 41-2022”) becomes effective on July 20, 2022. For employers that qualify as micro, small and medium-sized businesses, it becomes effective on September 18, 2022. Therefore, employers have until those dates to implement the provisions of Act 41-2022, which could imply the revision of policies, handbooks, employment contracts, and payroll and operational guidelines, among others.
Act 41-2022 amended many laws that impact employment in the private sector. Some of the most important changes are focused on the following areas:
- probationary period
- vacation and sick leave accrual
- annual (“Christmas”) bonus
- meal breaks
- day of rest
- discipline and employment termination
Accordingly, employers should ensure that their policies, handbooks, contracts, payroll practices and other operational guidelines are in line with the changes implemented by Act 41-2022.
The content of this McV Alert has been prepared for information purposes only. It is not intended as, and does not constitute, either legal advice or solicitation of any prospective client. An attorney-client relationship with McConnell Valdés LLC cannot be formed by reading or responding to this McV Alert. Such a relationship may be formed only by express agreement with McConnell Valdés LLC.
