Sick Leave
Under Act No. 180 of July 27, 1998, employees in Puerto Rico accrue sick leave at a rate of one day each month, provided that they work no less than one hundred and fifteen (115) hours a month. The law specifically states that the enjoyment of sick leave does not excuse compliance of those standards of conduct validly established by the employer, such as attendance, punctuality, medical certificates if the absence exceeds two (2) working days, and periodic reports on the continued illness.
For accrual purposes, the use of sick leave shall be deemed as time worked, and shall be paid on the basis of an amount which is not less than the regular hourly wage earned by the employee in the month the leave was accrued. For individuals with variable wages such commissions other compensation structures that are not at the full discretion of the employer, the regular hourly wage is computed by dividing by fifty-two (52) weeks the total commissions or incentives earned during the year. Sick leave not used by the individual during the year will accrue for subsequent years up to a maximum of fifteen (15) days.
Before Act No. 180 became law, vacation, sick leave and other benefits were regulated by a system of wage orders known as “mandatory decrees”. Employees accrued leave depending on the industry the employer belonged to. There were numerous decrees with different rates of vacation accruals. The new law took into account this situation and provided that employees covered by a decree as of August 1, 1995 with accrual rates higher or lower than what was provided by the new law would continue under the same terms of the decree. The enjoyment of the higher benefit continued for as long as an employee continued to work for the same employer.
Vacation Leave
Under Act No. 180 of July 27, 1998, employees in Puerto Rico accrue vacation leave at a rate of one and one quarter (1 ¼) days each month, provided that they work no less than one hundred and fifteen (115) hours a month. For the accrual of said benefits, the use of vacation leave shall be deemed as time worked, Vacation leave shall be paid on the basis of an amount which is not less than the regular hourly wage earned by the employee in the month the leave was accrued.
For employees who receive commissions or other incentives that are not at the full discretion of the employer, the total commissions or incentives earned for the year can be divided between fifty-two (52) weeks, to compute the regular hourly wage. Vacation leave shall be granted annually but an employee cannot claim the leave until it has accrued for one year. The employer can schedule the leave in such a way as not to disrupt the normal operation of the enterprise; but leave shall be enjoyed consecutively, unless through an agreement between the employer and the employee, it is apportioned, provided that the employee enjoys at least five (5) consecutive working days of vacation leave during the year.
The employer and the employee may agree to allow up to two (2) years of vacation leave to be accrued. An employer, who fails to grant leave after accruing the maximum, must grant the total leave accrued to date, and pay the employee twice the corresponding salary for the period in excess. The employer may allow the partial liquidation of accrued leave in excess of ten (10) days upon written request of the employee. In the event the employee terminates his/her employment, the employer must pay the employee the total leave accrued to such date, even though it is less than a year.
Before Act No. 180 became law, vacation, sick leave and other benefits were regulated by a system of wage orders known as “mandatory decrees”. Employees accrued leave depending on the industry the employer belonged to. There were numerous decrees with different rates of vacation accruals. The new law took into account this situation and provided that employees covered by a decree as of August 1, 1995 with accrual rates of vacation higher or lower than what provided by the new law would continue under the same terms of the decree. The enjoyment of the higher benefit continued for as long as an employee continued to work for the same employer.