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PC 565

Para derogar los Artículos 1.1, 1.2, 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10, 2.11, 2.12, 2.13, 2.14, 2.15, 2.16, 2.17, 2.18, 2.19, 2.20, 2.21, 6.1, 6.2 y 7.1 de la Ley Núm. 4-2017, según enmendada., mejor conocida como la “Ley de Transformación y Flexibilidad Laboral”; enmendar los Artículos 6 y 12 de la Ley 180-1998, según enmendada, mejor conocida como “Ley de Vacaciones y Licencia por Enfermedad de Puerto Rico” con el fin de ampliar las licencias de vacaciones y enfermedad; y para otros fines relacionados.

2025-2028 Session

Repeal Puerto Rico's 2017 labor flexibility law and expand employee vacation and sick leave protections, strengthening worker rights while potentially increasing employer costs.

Referido a Comisión(es)
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WeVote Research Nonpartisan
Bill Summary · PC 565

Legislative bill overview

Bill PC 565 proposes to repeal significant portions of Puerto Rico's 2017 Labor Transformation and Flexibility Law (Law 4-2017), while simultaneously amending the 1998 Vacation and Sick Leave Law to expand employee leave entitlements. The bill effectively reverses labor flexibilization measures and strengthens worker protections regarding time off.

Why is this important

This legislation directly affects Puerto Rico's labor market competitiveness and worker welfare. The 2017 law was designed to reduce labor costs and attract business investment through flexible employment terms; repealing it could increase operational costs for employers while improving job security and benefits for workers. The outcome will influence Puerto Rico's economic development strategy and workforce conditions.

Potential points of contention

  • Business impact: Employers may face increased labor costs from expanded leave entitlements and reduced flexibility in hiring/termination practices, potentially affecting competitiveness
  • Economic development trade-off: The 2017 law was meant to incentivize business investment; reversing it could discourage new employers from locating in Puerto Rico
  • Implementation scope: The bill repeals nearly all substantive provisions of the 2017 law without clearly detailing replacement mechanisms or transition periods for affected employers and employees
  • Fiscal implications: Expanded leave requirements may strain small businesses and require clarification on how leave costs are distributed between employers and the government

Compiled from official sources — confirm details with the bill’s official record.

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