The Court of Appeals for the First Circuit confirmed the nullity of Act No. 41-2022

August 14, 2023

Great news for the companies and human resources professionals in Puerto Rico! The Court of Appeals for the First Circuit has upheld the decision of the Federal Court for the District of Puerto Rico that declared Act No. 41-2022 null and void ab initio. This decision significantly impacts the workplace; we must be aware of these changes.

Act No 41-2022 generated uncertainty and challenges for companies in Puerto Rico, but this court ruling provides clarity and legal certainty. As you know, this statute was signed by the Governor of Puerto Rico in June 2022, through which he introduced amendments to Act No 4- 2017, known as the Labor Transformation and Flexibility Act. Among the changes that Act No. 41-2022 intended to make were the following:
- increase leave accrual for full-time employees;
- establish the right to accrue vacation leave and sick leave for part-time employees;
- establish double-rate extraordinary compensation for students who work on the day
- reinstate the presumption of dismissal was unjustified;
- restore the presumption as to whether the person was a permanent or fixed-term
employee, and
- restore the principle of interpretation of ambiguous law provisions or contracts in
favor of employees.

After this decision, it was confirmed that Act No. 41-2022 was invalid and, therefore, never had legal effects.
We want to recognize your hard work in times of legal uncertainty that, after the publication of the decision, ends today. As those responsible for managing their companies' human capital, we know that it is essential to be proactive and be prepared to adjust strategies and policies based on the regulations governing employment in Puerto Rico. For this reason, it is always a pleasure for us to share updated and relevant information.

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