Puerto Rico Termination Letter - General
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FAQ
Does the WARN Act apply to Puerto Rico and other territories of the United States, such as Guam? Yes. Territories of the United States are subject to U.S. laws.
In short, just cause for termination is severe misconduct, neglect or incompetence on the part of an employee. Usually, employers must provide employees notice or termination pay in lieu of notice before their employment can be terminated (these are called without cause terminations).
Does the WARN Act apply to Puerto Rico and other territories of the United States, such as Guam? Yes. Territories of the United States are subject to U.S. laws.
Are you required to provide a termination letter? Federally, and in most states, a termination letter is not legally required. In some states, currently including Arizona, California, Illinois and New Jersey, written termination notices are required by law.
Puerto Rico is not an 'employment at will' jurisdiction. Thus, an indefinite-term employee discharged without just cause is entitled to receive a statutory discharge indemnity (or severance payment) based on the length of service and a statutory formula.
Wage and hour coverage in Puerto Rico for non-exempt employees is governed by the US Fair Labor Standards Act (FLSA) as well as local laws.
4 of 26 January 2017 (the Labor Transformation and Flexibility Act (Law No. 4)), requires that termination be for 'just cause' (or the payment of a statutory severance). A termination is for 'just cause' if it is not motivated by legally prohibited reasons or the product of the employer's caprice.
285 indicates the just causes for resignation as follows: serious insult to the honor and person of the employee; inhuman and unbearable treatment accorded the employee by the employer or his representative; crime committed against the person of the employee or any immediate members of the employee's family; and.
Section 403 of PROMESA modified Section 6(g) of the Fair Labor Standards Act (FLSA) to allow employers to pay employees in Puerto Rico who are under the age of 25 years a subminimum wage of not less than $4.25 per hour for the first 90 consecutive calendar days after initial employment by their employer.
A just cause termination means that the employer has terminated your employment on the basis of serious misconduct that goes to the heart of your employment contract. A just cause termination means that the misconduct was severe enough such that your employment relationship cannot be repaired.
