Impact of the LUC on AGRO

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Tractor rojo en el campo

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Urgent Consideration Law No. 19,889 introduced the following modifications that have an impact on the agricultural sector:

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  • Payment of salaries

  • Payment of fees

  • Modification to the National Colonization Institute (INC)

  • Strengthening of the National Meat Institute (INAC)

  • Creation of the National Farm Institute

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Each one is developed below:

Payment of salaries

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Articles 215 and 216 of Law No. 19,889, establishes that salaries may be paid in cash, or through accreditation in accounts in financial intermediation institutions or in electronic money instruments.

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At the beginning of the employment relationship, the payment method will be agreed, which will be valid for one year. Once that period has expired, if a new payment method has not been agreed, it will be extended for one year.

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The worker has the right to freely choose the institution in which he will receive his salary. In the event that he does not choose one, the employer is empowered to choose one, until the worker makes use of his possibility to choose the institution.

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The Executive Power will regulate the terms and modalities for the agreement between the worker and the employer regarding the form of payment of the workers who are currently in a dependency relationship,

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Payment of fees

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Professional fees for services rendered outside the dependency relationship may be paid in cash, up to the amount equivalent to UI 1,000,000 (approximately USD 107,000).

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The obligation to pay by means of accreditation in a bank account or electronic money instrument is eliminated for those fees for an amount less than that mentioned.

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INC

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What is it?

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The INC is the benchmark public body in land policy matters and one of the relevant public institutions in promoting rural development. This autonomous entity, created by Law No. 11,029, is in charge of adopting a set of measures to promote a rational subdivision of the land and its adequate exploitation, in order to increase and improve agricultural production and the establishment and welfare of the rural worker.

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Who has access to the INC lands?

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There is a legal definition of giving special priority, for entering the entity's lands, to families made up of young people and with school-age children as well as to organized small producers, working in groups, who are already carrying out associative exploitations of land, which exploit insufficient areas and / or with precarious tenures (Article 13 of Law No. 18,187).

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Currently, the colonist must work directly on the property and inhabit it (unless it is organized through the system of housing grouped in villages).

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The LUC adds more exceptions to the condition of inhabiting the property, establishes that the Director of the INC may authorize it if the settlers meet the following requirements:

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1) filing for a minimum period of ten years.

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2) compliance with the committed investment plan, if any.

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3) invoke well-founded reasons for the health, education or work of the settler or the members of the family nucleus.

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In the event that duly founded health reasons are invoked before ten years of filing, such obligation may be exempted with the affirmative vote of four members of the Board of Directors.

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INAC

The competences are extended to the National Meat Institute in everything that has to do with the meat chain, not only when sales are going to be made abroad but also internally.
It will have competence to advise, promote, analyze, coordinate and collaborate in the promotion and execution of activities in the animal production sector.

Authorization, registration and control of butchers throughout the national territory. (Before the LUC, control in the interior was the responsibility of the municipalities).


A period of 180 days is established from the effective date of this law for INAC and the Departmental Governments to implement the activities of authorization, control and registration and control of butcher shops and consumer sales premises.

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National Farm Institute

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The General Farm Directorate is replaced and the National Farm Institute is created as a decentralized body of the Ministry of Livestock, Agriculture and Fisheries, with technical autonomy.

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A period of 180 days is established for the Executive Power to present a bill with the tasks, competences, powers and what will be the integration of the same.

With the creation of a National Farm Institute, everything related to farming in general is hierarchical.

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