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Ecuador

Employee Rights and Protections

Explore workers' rights and legal protections in Ecuador

Termination

In Ecuador, labor laws provide specific regulations regarding the termination of employment contracts. These guidelines are essential for both employers and employees to understand.

Lawful Grounds for Dismissal

The Labor Code of Ecuador (CĂłdigo del Trabajo) outlines specific reasons that justify a lawful dismissal by an employer. These include:

  • Serious Misconduct: Acts such as repeated absenteeism, insubordination, theft, or workplace violence.
  • Physical or Verbal Abuse: Abuse towards the employer, their family, or colleagues.
  • Inexcusable Inefficiency: Repeated failure to meet job performance standards.
  • Habitual Drunkenness or Drug Use: If it affects work performance.
  • Disclosure of Company Secrets: Actions that damage the company's interests.

To justify the termination, employers must provide evidence to support these reasons.

Notice Requirements

Generally, Ecuadorian labor law does not require a formal notice period for employers terminating an employee for just cause. However, there are some exceptions:

  • Dismissal during Trial Period: Employers can terminate the contract within the 90-day trial period but may need to provide some notice depending on the specific agreement.
  • Job Stability: Employees who have worked for at least one year cannot be dismissed without prior notice. This implies a notice period of at least three months for those with nine months of tenure.

Severance Pay

Ecuador mandates severance pay for employees dismissed without just cause or when the employee terminates the agreement due to the employer's breach of obligations. Employees are entitled to the following:

  • Standard Severance: Calculated as one month's salary for each year of service with a minimum of three months' salary.
  • Desahucio: An additional bonus equivalent to 25% of the last monthly remuneration for each year of service.

Important Considerations

  • Employees with disabilities are entitled to an additional 18 months of salary as severance pay.
  • Collective bargaining agreements or individual contracts may provide for more generous severance terms.

Discrimination

Ecuador is committed to promoting a fair and inclusive society through strong anti-discrimination laws. These laws safeguard individuals from discrimination in various sectors, such as employment, education, and access to public services.

Protected Characteristics

Ecuadorian law forbids discrimination based on a comprehensive list of protected characteristics, as outlined in the Constitution of Ecuador:

  • Age
  • Civil Status
  • Disability
  • Ethnicity
  • Gender
  • Gender identity
  • Health status (including HIV/AIDS)
  • Immigration status
  • National origin
  • Political opinions
  • Pregnancy
  • Race
  • Religion or belief
  • Sexual orientation
  • Socio-economic status

Redress Mechanisms

Individuals who experience discrimination have several options for seeking redress in Ecuador:

  • Internal Complaints: Many organizations have internal grievance procedures to handle discrimination complaints.
  • DefensorĂ­a del Pueblo: The Ombudsman's Office (DefensorĂ­a del Pueblo) is a public institution responsible for protecting human rights, including investigating discrimination claims.
  • Labor Courts: Employees who face discrimination in the workplace can lodge a complaint with specialized labor courts.
  • Constitutional Court: The Constitutional Court is the highest authority on constitutional matters, including cases of discrimination.

Employer Responsibilities

Employers have a crucial role in preventing discrimination in the workplace. Ecuadorian law sets out responsibilities for employers, including:

  • Non-Discrimination Policy: Creating and clearly communicating an anti-discrimination policy that applies to all aspects of employment.
  • Training and Awareness: Educating employees on discrimination, relevant laws, and the company's non-discrimination policy.
  • Complaint Procedures: Setting up a transparent and accessible mechanism for employees to report discrimination concerns.
  • Prompt Investigation: Thoroughly investigating all discrimination complaints and taking appropriate remedial action when necessary.

Positive Actions

Ecuadorian law encourages employers to implement "positive actions" or "affirmative actions" to promote equality and address historical disadvantages faced by certain groups.

Working conditions

Ecuadorian labor laws establish baseline standards to ensure a safe and healthy work environment. These regulations encompass work hours, rest periods, and ergonomic considerations.

Work Hours and Overtime

Ecuador follows a standard workweek of 40 hours, with a maximum of 8 hours per day, Monday through Friday. Special circumstances can allow for a reduced workweek (down to 30 hours) upon mutual agreement between employer and employee, with limitations on the duration.

Overtime work is permitted, but with limitations and additional compensation. Any hours exceeding the 40-hour limit are considered overtime and must be paid at a premium rate:

  • 1.25 times the regular wage: Applies to the first two hours of overtime each day.
  • Double the regular wage: Applies to any subsequent overtime hours each day and all overtime hours on weekends and holidays.

Rest Periods

Ecuadorian law mandates specific rest periods for employees to ensure recuperation and prevent fatigue. These include:

  • Daily Lunch Break: A minimum of one hour for employees working more than six hours a day.
  • Weekly Rest Period: A continuous 36-hour rest period each week, typically over the weekend. This extended break allows for sufficient time away from work demands.

Ergonomic Requirements

While ergonomic considerations aren't explicitly mandated in Ecuadorian labor law, there are underlying principles that indirectly address them. The general obligation for employers to guarantee "health, hygiene and safety conditions" translates to a workplace designed to minimize musculoskeletal risks.

Health and safety

Ecuador prioritizes worker well-being through a comprehensive framework of health and safety regulations. Understanding these regulations is crucial for both employers and employees. This guide explores key aspects, including employer obligations, employee rights, and enforcement mechanisms.

Employer Obligations

Ecuadorian law mandates employers to establish and maintain a safe and healthy work environment. The Ministry of Labour, through its Directorate of Occupational Safety and Health, outlines these obligations:

  • Risk Prevention: Employers must proactively identify and mitigate workplace hazards. This includes conducting risk assessments, implementing control measures, and providing personal protective equipment (PPE).
  • Training and Awareness: Employees must receive ongoing training on safety procedures, hazard recognition, and emergency protocols.
  • Safe Work Practices: Employers are responsible for developing and enforcing safe work practices to minimize the risk of accidents and illnesses.
  • Medical Evaluations: Depending on the industry and potential hazards, employers might be required to provide pre-employment and periodic medical evaluations for workers.
  • Accident Reporting and Investigation: All work-related accidents and illnesses must be reported to the Ministry of Labour and the Social Security Institute. Additionally, employers must investigate incidents to prevent future occurrences.

Employee Rights

Ecuadorian workers have fundamental rights concerning workplace safety and health:

  • Right to a Safe Workplace: Employees have the right to work in an environment free from foreseeable risks to their health and safety.
  • Refusal of Unsafe Work: Workers have the right to refuse work they believe is unsafe, without fear of retribution.
  • Access to Information and Training: Employees have the right to be informed about workplace hazards, safety procedures, and receive relevant training.
  • Reporting of Unsafe Conditions: Workers can report unsafe work conditions or practices to the Ministry of Labour without fear of retaliation.

Enforcement Agencies

The Ministry of Labour, through its Directorate of Occupational Safety and Health, is the primary enforcement agency for workplace safety regulations. They conduct inspections, investigate accidents, and impose fines for non-compliance.

The Social Security Institute also plays a role in workplace safety. They offer technical assistance and collaborate with the Ministry of Labour in enforcing regulations.

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