Puerto Rico Supreme Court Reaffirms Importance of Just Cause for Employee Terminations
Takeaways In the wrongful discharge case of Méndez Ruiz v. Techno Plastics Industries, Inc., the Court found an employee’s exhaustion of the 12-month Workers’ Compensation leave is not automatic grounds for a just cause termination. Puerto Rico does not recognize employment-at-will. Just cause analysis is necessary for terminations in Puerto Rico. Related link Méndez Ruiz v. Techno Plastics Industries, Inc. Article The Puerto Rico Supreme Court recently issued a decision reaffirming the importance of just cause for employment terminations in Puerto Rico. Méndez Ruiz v. Techno Plastics Industries, Inc. , No. 2025 TSPR 68 (June 26, 2025). Puerto Rico does not recognize employment-at-will. The Court reiterated that companies must establish the reasons for termination are not arbitrary, capricious, or unrelated to legitimate business reasons . Under Law No. 80 of May 30, 1976, the Puerto Rico Unjust Dismissal statute, employers must have “just cause” for dismissal of...