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Puerto Rico

How to Hire Workers in Puerto Rico | Employer of Record (EOR) in Puerto Rico

Expand your business into Puerto Rico with confidence using our Employer of Record (EOR) services. We handle all aspects of local employment, including payroll, benefits, and compliance with Puerto Rican labor laws. Our personalized approach ensures that your business operations in Puerto Rico run smoothly, giving you peace of mind as you grow your presence in this dynamic market.

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Puerto Rico, known for its beautiful beaches, vibrant culture, and strategic location, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Puerto Rico, offering comprehensive solutions for building your contingent workforce.

With a population of over 3.2 million people, Puerto Rico boasts a skilled and bilingual workforce. From the historic streets of Old San Juan to the lush rainforests of El Yunque, the country offers a unique blend of culture and natural beauty.

When expanding your business into Puerto Rico, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into Puerto Rico. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Fixed-Term Contracts

Fixed-term contracts are permitted in Puerto Rico for a specific period or project but must be reasonably limited in duration to justify their temporary nature. They should not be repeatedly renewed. Cumulatively, they should not be longer than three years. Depending on the facts, they can be deemed indefinite. For example, if work continues beyond the expiration of the term, the contract will be deemed indefinite. Fixed-term contracts are exempt from the just cause requirement for termination.

Probationary Periods

Probationary periods are permitted and automatically applied. Executive, administrative, and professional (“exempt”) Workers are automatically subject to a 12-month probationary period. For all other Workers (“non-exempt”), the period is nine months.

Holidays

There is no right to paid holidays or mandatory observance of public holidays in the private sector. What holidays are observed are determined by the company. In addition to the US Federal Holidays, Puerto Rico also considers the following to be public holidays: Epiphany (January 6) American Citizenship Day (March 2) Emancipation Day (March 22) Birthday of Jose de Diego (April 19) Puerto Rican Independence Day (July 5) Birthday of Don Luis Munoz Rivera (third Monday in July) Constitution Day (July 24) Birthday of Jose Barbosa (July 27) Discovery of Puerto Rico Day (November 19) Emancipation Day (December 2)

Vacation

Non-exempt Workers accrue paid vacation at a rate of one-half day for each month where 130 hours or more were worked. Vacation should be taken in a single consecutive period unless a supervisor authorizes splitting the time. Accrued but unused vacation must be paid at the time of termination. Workers may cash out up to 10 days of vacation with the employer’s approval. Exempt Workers’ vacation benefits are not statutory. They must be outlined by the employment agreement.

Sick Leave

Non-exempt Workers accrue sick leave at a rate of one day for each month where 130 hours or more were worked. Unused sick leave carries over year to year, but cannot exceed 15 days. Exempt Workers’ sick leave benefits are not statutory. They must be outlined by employment agreement.

Working Hours

The regular fulltime workweek for non-exempt Workers is generally work 8 hours per day and 40 hours per week.

Overtime

Non-exempt Workers are entitled to 150% of wages for work performed in excess of the regular workweek. Exempt Workers are not entitled to overtime. Rather, they are compensated for each week of work regardless of hours worked.

Mandatory Bonuses

All Workers with at least 1,350 hours or more worked during the period of October 1 to September 30 of the prior year are entitled to a Christmas bonus, which is generally equivalent to 2% of the salary earned, not to exceed $600. During the first year of employment, Workers can qualify for only half of the Christmas bonus. Bonuses must be issued between November 15 and December 15.

Termination

Termination requires just cause (e.g. improper conduct, poor performance, etc.) or the payment of a statutory severance equal to three months’ salary plus two weeks’ salary for each year of service, capped at nine months total. 

Resignation

There are no statutory requirements for Worker resignation.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.