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Labor claims, inspections and penalties in Uruguay: conciliation, the fast labor trial and Labor Inspectorate fines

Last verified: 2026-10-27 · Status: Stable

Before suing, a worker must request conciliation at the MTSS (the Individual Labor Dispute Center in Montevideo or the Labor Offices elsewhere); the request interrupts the time bar, and if no hearing is held within 30 days the worker can sue. Labor trials are fast and free for workers: 15 days to answer, a single hearing within 60 days, partial judgment on undisputed items, judgment within 20 days, and unpaid labor credits carry an automatic 10 percent surcharge, 6 percent annual interest and indexation. The Labor Inspectorate can warn, fine 1 to 150 days' wages per affected worker (double for repeat offenders) or close an establishment for up to six days.

USD figures use UYU 40.214 per US dollar, the BCU quotation for DLS. USA BILLETE on 26 October 2026, retrieved from the BCU quotations service on 27 October 2026; conversions are for orientation only.

Key facts

Claims below which no lawyer is required at MTSS conciliation	20 URLey Nº 18.572 art. 3, as of 2026-10-27 · in force
Unidad Reajustable, September 2026	1940.77 UYUIMPO values table, as of 2026-10-27 · in force
Days after which the worker may sue without completed conciliation	30 daysLey Nº 18.572 art. 6, as of 2026-10-27 · in force
Time to answer a labor claim (ordinary process)	15 daysLey Nº 18.572 art. 9, as of 2026-10-27 · in force
Single hearing set within	60 daysLey Nº 18.572 art. 13, as of 2026-10-27 · in force
Automatic surcharge on unpaid labor credits	10 %Ley Nº 18.572 art. 29, as of 2026-10-27 · in force
Annual interest on labor credits in judgments	6 %Ley Nº 18.572 art. 16, as of 2026-10-27 · in force
Labor Inspectorate fine range per worker affected	1 to 150 days' wagesLey Nº 15.903 art. 289, as of 2026-10-27 · in force
Time bar for actions after the end of employment	1 yearLey Nº 18.091 art. 1, as of 2026-10-27 · in force

The rule

1. Before any labor trial, conciliation must be attempted at the Centro de Negociación de Conflictos Individuales de Trabajo in Montevideo or the MTSS Labor Office elsewhere, according to the employer's domicile or the place of work. The written request must state the facts and itemize the amounts claimed and needs a lawyer unless the claim is below 20 UR. The hearing is called with at least three days' notice; if the employer does not attend or does not identify a responsible third party, that counts against it later, and an agreement reached can be enforced directly.
Example: With the UR at UYU 1,940.77 in September 2026, 20 UR is UYU 38,815.40: smaller claims can be filed without a lawyer. / About US$965.Ley Nº 18.572 (Labor procedure), Art. 3 and 4, 2009-09-13 official text · verified 2026-10-27

2. Filing the conciliation request interrupts the prescription period, and so does filing the claim or any court step to protect the credit. If conciliation has not ended within 30 days of the request, the worker can obtain a certificate and sue.Ley Nº 18.091; Ley Nº 18.572, Ley 18.091 art. 3 and 4; Ley 18.572 art. 6, 2009-09-13 official text · verified 2026-10-27

3. In the ordinary labor trial the claim must itemize every amount, the defendant answers within 15 days with all defenses, there is no counterclaim, the court sets a single hearing within 60 days, issues a partial enforceable judgment for undisputed items at that hearing and gives final judgment there or within 20 days with liquid amounts. Appeals are filed within 10 days and the appeal court rules within 30 days. Claims up to UYU 81,000 (updated yearly by the Supreme Court) follow a single instance procedure with ten days to answer.Ley Nº 18.572 as amended by Ley Nº 18.847, Art. 8, 9, 10, 13, 14, 15, 17, 19 and 21, 2011-11-25 official text · verified 2026-10-27

4. Unpaid labor credits automatically carry a 10 percent surcharge from the date they fall due. Judgments add 6 percent annual interest from that date, indexation under Decreto Ley 14.500 and the damages of Ley 10.449 art. 4 where applicable (up to 50 percent of minimum wages owed). Proceedings are free for workers, including taxes and registry fees.
Example: UYU 200,000 of unpaid overtime due 18 months before judgment: 10 percent surcharge UYU 20,000 plus 6 percent annual interest, about UYU 18,000, plus indexation. / UYU 200,000 is about US$4,973; UYU 38,000 of surcharge and interest about US$945.Ley Nº 18.572; Ley Nº 10.449, Ley 18.572 art. 16, 28 and 29; Ley 10.449 art. 4, 2009-09-13 official text · verified 2026-10-27

5. Breaches of ILO conventions, laws, decrees, resolutions, Wage Council decisions and collective agreements controlled by the Labor Inspectorate (IGTSS) are punished by warning (entry in the Registry of Labor Infringers), fines graded by seriousness between 1 and 150 days' wages per worker affected, converted into UR and doubled for repeat offenders, or closure of the establishment for up to six days with full pay for workers, ordered by the MTSS for clear fraud on the State or harm to workers.
Example: An overtime recording breach affecting 20 workers on UYU 2,500 a day can be fined between UYU 50,000 and UYU 7,500,000. / About US$1,243 to US$186,502.Ley Nº 15.903 as reworded by Ley Nº 16.736, Art. 289, 1996-01-05 official text · verified 2026-10-27

6. Specific fines also apply: double the year end bonus owed to each worker for not paying it. Labor inspectors record their visits, findings and orders in the company's Labor Record Book.Ley Nº 12.840; Decreto Nº 278/017, Ley 12.840 art. 7; Decreto 278/017 art. 14, 1960-12-22 official text · verified 2026-10-27

7. Actions arising from employment time bar one year after the day following the end of employment, and labor credits five years after they became payable.Ley Nº 18.091, Art. 1 and 2, 2007-01-07 official text · verified 2026-10-27

Stage	Time	Article
Conciliation request at MTSS	Hearing with at least 3 days' notice	Art. 3, 4
Certificate to sue if conciliation not finished	After 30 days	Art. 6
Answer to claim	15 days	Art. 9
Single hearing	Within 60 days of the answer	Art. 13
Final judgment	At hearing or within 20 days	Art. 15
Appeal	10 days; appeal court rules within 30 days	Art. 17

Timeline of an ordinary labor claim (Ley 18.572)

Worked example

A former employee claims UYU 600,000 (about US$14,920) in overtime and severance differences 11 months after leaving. The conciliation request stops the one year clock; if the company settles at the MTSS hearing the agreement is directly enforceable, otherwise the worker sues and the company has 15 days to answer and should expect a hearing within about two months.
Paying the undisputed part early avoids the partial judgment and limits the 10 percent surcharge to the disputed items.

Step by step

1. When a conciliation summons arrives, prepare payroll, pay slips and the Labor Record Book for the claimed period.
2. Attend the hearing and name any third party responsible (for example a contractor).
3. Evaluate settlement: amounts paid late carry 10 percent plus interest and indexation.
4. If sued, answer within 15 days with all defenses and evidence.
5. Keep records for at least five years after each payment.

Common traps

Not attending conciliation or not naming a responsible third party creates presumptions against the employer.
Surcharges run automatically from the due date, not from the judgment.
Fines are computed per worker affected, so a payroll wide breach multiplies quickly.
The one year time bar runs from the end of employment, but credits reach back five years.

Sources

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