The Puerto Rico Supreme Court recently ruled that an employer did not have just cause under local employment law to dismiss an employee who required additional medical treatment after the expiration of the job reserve period established by the Puerto Rico Worker’s Compensation Act. The June 26 decision in Méndez Ruiz v. Techno Plastics Industries, Inc., saw the Court conclude that the dismissal lacked justification under Puerto Rico’s Unjustified Dismissal Statute, also known as Law 80. What do employers with operations in Puerto Rico need to know about this decision?

Case Background

Silmarie Méndez Ruiz experienced a workplace accident while working at Techno Plastics Industries on July 10, 2018, and reported it to the State Insurance Fund Corporation (SIFC).

• She was initially placed on rest until July 21, 2018, and then was allowed to continue treatment while working.
• By July 6, 2019, Méndez Ruiz was working with SIFC’s authorization. She worked without interruption from January 28, 2019, to February 10, 2021.
• On April 22, 2021, SIFC issued a leave recommendation until May 1, 2021.

However, Techno Plastics terminated Méndez Ruiz on April 26, 2021, alleging that the12-month reserve period provided by the Puerto Rico Worker’s Compensation Act had expired and her absences from work were no longer protected.

The Law Court’s Decision

The Supreme Court ruled that the expiration of the 12-month reserve period did not justify the employee’s termination, as she had already...

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