Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Puerto Rico Heading Towards At-Will Employment

By Erika C. Collins, Genesis Sanchez Tavarez & Yonatan Grossman-Boder on June 12, 2018
Email this postTweet this postLike this postShare this post on LinkedIn

On May 30, 2018, the Puerto Rican Senate voted in favor of overturning an Act that provided significant protections to Puerto Rican employees. The repeal would roll back the current law, Act No. 80, which prohibits employees from being terminated without just cause, thus making it significantly easier for employers to terminate employees.

Currently, private and public sector employees in Puerto Rico who are hired for an indefinite period of time cannot be terminated without just cause. This means that under Act No. 80, an employee currently can be terminated only if the employer has legally justified reasons that are: 1) present; 2) can be proven, and; 3) tend to affect the wellbeing and normal course of the business. Under the current law, reasons that constitute just cause can include: improper behavior by the employee, poor job performance, lateness, negligence, inefficiency, failure to follow protocols and security measures, lack of productivity, lack of competence or ability to perform in a reasonable manner as expected by the employer, constant or repetitive complaints by clients, multiple violations of an employer’s rules, defamatory comments, or divulging privileged information.   If an employer violates the Act, the company is liable for up to two weeks of pay based on the employee’s highest recent salary for each year of service completed, potentially leading to a large statutory award.

In order to attempt reforming the current state of the law, the Puerto Rican Governor announced on May 28th a proposal that would have permitted any employee to be terminated for any reason, other than an illegal reason, thereby potentially converting all employees into “at-will” employees. The repeal came about as a part of the restructuring of Puerto Rico’s debt. As part of the restructuring, the Junta de Supervision Fiscal (“JSF”), the supervisory board for Puerto Rico’s economy, wanted to eliminate Act No. 80 in order to make Puerto Rico more business friendly and increase the availability of jobs. Indeed, it seemed that this broad proposal was a compromise by the Governor and the JSF, as the JSF had previously been advocating for eliminating Christmas bonuses and reducing paid time off.

Nonetheless, the Puerto Rican Senate tempered the broad proposal, and modified the proposal so that only new hires will be employed at-will, and individuals formerly covered by Act No. 80 would remain protected and require just cause for any termination. The Puerto Rican Senate also modified the implementation date so that it would go into effect immediately after passage instead of waiting until January 1, 2019. While the proposal now has passed in the Senate, there may not be the necessary support needed to pass the House of Representatives. The House of Representatives started Public Hearings on the proposal on June 4th, 2018 to determine the expected impact of the repealing of Act No. 80.

The proposal still has significant hurdles to clear before it overturns the current law. Unions, such as the Central Puertorriqueña de Trabajadores (CPT), have called for the House of Representatives to vote against the repeal. Furthermore, the change may have a major impact on the labor force in Puerto Rico as it is expected that if the bill passes the House, Puerto Rican workers may unionize at higher rates in order to secure the same protections through bargaining. Currently, only about 10% of private sector workers in Puerto Rico are in a union. The change also may lead to an increase in litigation for unfair dismissal. While employers do not need to make any immediate changes, we will continue to monitor the progress of this proposal closely and blog about any updates as it may have a major impact on the employment landscape in Puerto Rico.

Photo of Erika C. Collins Erika C. Collins
Email
Photo of Genesis Sanchez Tavarez Genesis Sanchez Tavarez

Genesis Sanchez Tavarez is an associate in the Litigation Department. Her practice encompasses a broad range of high-profile complex litigation matters across the country, with a particular emphasis on product liability, antitrust and contract disputes. Genesis has experience representing clients at all stages…

Genesis Sanchez Tavarez is an associate in the Litigation Department. Her practice encompasses a broad range of high-profile complex litigation matters across the country, with a particular emphasis on product liability, antitrust and contract disputes. Genesis has experience representing clients at all stages of litigation. Her experience also spans a wide array of industries, such as pharmaceuticals, professional sports, and consumer products.

Genesis has previously undertaken three client secondments while at Proskauer. As a summer associate, she worked as a labor relations associate in the labor department of the Broadway League. In her first year, Genesis spent five months serving as Special Assistant Corporation Counsel in the Commercial and Real Estate Division of the New York City Law Department. More recently, as a second year, Genesis spent six months at Takeda Pharmaceuticals USA where she served as counsel in US Litigation & Investigations.

Genesis is also member of Proskauer’s Diverse Lawyers Network as well as Proskauer’s Hispanic Lawyers Affinity Group and Black Lawyers Affinity Group. In 2022, Genesis served as a member of the Summer Program Committee. Genesis was also a Proskauer Silver Scholar.

Prior to joining Proskauer, Genesis earned her J.D. From Columbia Law School, where she was a part of the Immigrants’ Rights Clinic and the Refugee and Asylum Moot Court, vice president of the Latinx Law Student Association, and a staffer on the Human Rights Law Review Journal’s Jailhouse Manual. Genesis was also a visiting scholar at King’s College London in their Master of Laws (LLM) program. Additionally, Genesis has a Bachelor of Arts in Political Science, Justice Studies, and Public Administration.

Email
Show more Show less
Photo of Yonatan Grossman-Boder Yonatan Grossman-Boder

Yonatan (Yoni) Grossman-Boder is a special labor relations counsel in the Labor & Employment Law Department. Yoni assists clients in a wide range of labor and employment law matters, including litigations, administrative proceedings, arbitrations, internal investigations, labor-management relations and claims of employment discrimination…

Yonatan (Yoni) Grossman-Boder is a special labor relations counsel in the Labor & Employment Law Department. Yoni assists clients in a wide range of labor and employment law matters, including litigations, administrative proceedings, arbitrations, internal investigations, labor-management relations and claims of employment discrimination, harassment, retaliation, and wrongful termination. He frequently represents clients across a variety of industries and sectors, including educational institutions, financial services, media and entertainment companies, health services and professional services.

Yoni clerked for the Honorable Richard M. Gergel of the U.S. District Court for the District of South Carolina.  While attending Duke University School of Law, Yoni served as the publication and lead articles editor of Law and Contemporary Problems.

Prior to coming to Proskauer, Yoni served as a legal intern at the New York Human Resources Administration Employment Law Unit. As a legal intern, he worked on a variety of employment matters, including employment discrimination investigations and litigation. While a summer associate at Proskauer, Yoni co-authored an article on retiree health care benefits under ERISA titled “Understanding M&G Polymers v. Tackett,” published by Benefits Magazine in April 2015.

Read more about Yonatan Grossman-BoderEmail
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    International Labor and Employment Law
  • Organization:
    Proskauer Rose LLP

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo