Answer
Temporary residency allows a person to live in Uruguay for more than 180 days, but it is not intended for permanent settlement. It suits those who come to Uruguay for study, work, or another limited period.
With temporary residency, you may enjoy all rights except voting. The status is tied to its grounds and duration: work requires documents from the employer, study requires confirmation from the educational institution, and the status is issued for a limited period with the possibility of renewal.
Permanent residency is for those who intend to settle in the country permanently and meet its requirements. Therefore, the choice between temporary and permanent residence depends not on the name, but on the purpose of the move: a temporary contract or study is one scenario, long-term life in Uruguay is another.