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Second Labor Reform of the Rosselló Administration

Updated: Feb 3

On March 21, 2018, the Governor of Puerto Rico announced, in a public conference, the second labor reform of his administration.

His current proposal is to eliminate, in a period of three years, Act No. 80 of May 30, 1976, as amended, which protects employees hired without a specific term of employment from being dismissed without just cause, and Act No. 148 of June 30, 1969, as amended, which regulates the Christmas Bonus in the private sector.

This will be the second time that this administration intervenes with Act No. 80 and Act No. 148; the first time being on January 26, 2017, when they amended Act No. 80 to provide a new formula to calculate the severance cap and to increase the probationary period and Act No. 148 to increase the number of hours that an employee needs to work in order to be eligible for the Christmas bonus and the percent used to calculate it.

Governor Rosselló also anticipated that he intends to uniform the vacation and sick leave period for the private sector to seven days, for each leave, and that he intends to increase the minimum wage for it to be $7.75 per hour by the year 2019 with yearly increments of up to $8.25 per hour by 2021.

Currently, Gov. Rosselló has not introduced any written project in the Puerto Rico Legislature regarding this proposed labor reform.