Employer of Record in Puerto Rico

Businesses can only operate smoothly in Puerto Rico if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Puerto Rico below, to avoid any compliance issues.

Onboarding Process

We can help you get a new employee started in Puerto Rico quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.  

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment.

Payroll Cycle in Puerto Rico

The payroll cycle in Puerto Rico is usually Weekly, with employees being paid as stipulated in employment contract.

In Puerto Rico, work permits and visas are necessary for employers hiring foreign workers. Since Puerto Rico follows U.S. immigration laws, the process for obtaining work permits and visas aligns with the regulations in the U.S. Employers must submit applications to USCIS and meet specific requirements based on the visa type. The key visa types include the H-1B for specialty occupations, L-1 for intra-company transferees, O-1 for individuals with extraordinary abilities, and TN for citizens of Canada and Mexico. Employers must also be aware of the associated fees, processing times, and renewal periods for work permits to ensure compliance with U.S. immigration laws.

Mandatory Leave Entitlement in Puerto Rico

The annual leave entitlement in Puerto Rico is 6 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

An Employer of Record (EOR) helps businesses manage annual leave, paid time off (PTO), and local holidays across the globe, including in Puerto Rico. By partnering with an EOR, companies ensure full compliance with local labor laws in Puerto Rico when it comes to annual leave and time-off management.  EOR providers like Playroll offer platforms that simplify tracking and managing employee time off in Puerto Rico. By outsourcing this responsibility to Playroll, you can streamline leave management, ensure compliance, and free up time to focus on other business priorities.

Public Holidays in Puerto Rico

Puerto Rico observes 19 national public holidays, with certain dates, such as Memorial Day and Thanksgiving, varying each year based on the U.S. federal calendar.