Last Updated June 10, 2019

Law and Practice

Contributed By Ferrere Abogados

Authors



Ferrere Abogados is the only multi-jurisdictional, purely South American law firm, and has 250 attorneys across Bolivia, Ecuador, Paraguay and Uruguay, offering international-class service and participating in the majority of important deals. The M&A practice group works in collaboration with the firm’s other areas to form a multidisciplinary team offering full-service legal advice. It represents a stellar list of international and local clients from a wide range of sectors, such as retail, energy, infrastructure, insurance, construction, media and information technology, agribusiness, food, pharmaceutical, banking and real estate. Activity includes acting as buyer’s or seller’s counsel in acquisitions, leading applications for concessions, advising on greenfield projects, and developing ex ante a BIT protection strategy for a major investment.

In the context of an M&A transaction, acquirers should be aware that employees who are terminated by the company have the right to receive compensation equal to one month's remuneration for each year (or fraction thereof) of service, up to a maximum of six months' remuneration. The employer is exempt from paying this compensation in the event of the employees' proven notorious misconduct. This amount increases in cases of dismissal during pregnancy, illness or occupational accident, for example.

If the target company is a free trade zone company, acquirers should bear in mind that, as a general rule, a minimum of 75% of the persons employed by such company must be native or naturalised Uruguayan citizens in order to maintain Free Trade Zone user status and the exemptions, benefits and rights granted by law. A recent law allows the reduction of this percentage upon Executive Branch authorisation, and also introduces certain flexibility for the services sector. Companies outside the free trade zone do not have such limitation.

The statute of limitations for labour claims is one year following the termination of employment, with five years retroactivity.

Ferrere Abogados

Juncal 1392

+598 2900 1000

ferrere@ferrere.com www.ferrere.com
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Authors



Ferrere Abogados is the only multi-jurisdictional, purely South American law firm, and has 250 attorneys across Bolivia, Ecuador, Paraguay and Uruguay, offering international-class service and participating in the majority of important deals. The M&A practice group works in collaboration with the firm’s other areas to form a multidisciplinary team offering full-service legal advice. It represents a stellar list of international and local clients from a wide range of sectors, such as retail, energy, infrastructure, insurance, construction, media and information technology, agribusiness, food, pharmaceutical, banking and real estate. Activity includes acting as buyer’s or seller’s counsel in acquisitions, leading applications for concessions, advising on greenfield projects, and developing ex ante a BIT protection strategy for a major investment.

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