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How Difficult Is It to Dismiss an Employee, and Why Is It Disadvantageous for Companies?

Yes, it is difficult to dismiss an employee in Uruguay, and it can be financially disadvantageous for an employer.

Work, income and business

Answer

Yes, it is difficult to dismiss an employee in Uruguay, and doing so can be financially disadvantageous for an employer. Dismissal entails compensation, so keeping an employee until retirement may be cheaper.

This situation makes companies cautious in the labour market. Before hiring, an employer thinks not only about salary, but also about future obligations, possible payments, and the cost of making a mistake when choosing an unsuitable person.

For employees, this means stronger protection once they are formally hired, but for applicants, it means a higher barrier to entry. Companies may take longer to choose a candidate and examine language skills, experience, and documents more closely because it is not easy to let an employee go.

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