Yes, employers may fire an employee at any time. Most terminations are deemed wrongful terminations, for which the following –additional - compensation applies from day one (or 91 if a trial period was agreed to):

• One additional monthly wage for each year of work, with a minimum of three years.

Applicable January 1st 2024, Ecuador has set the minimum wage at $460/month for the general worker (different worker categories have different minimum wages).

Wages are due at least every month, but some parties agree to weekly or fortnight payments.

 14 wages are provided for in the year, with an additional wage (1/12 of the yearly remuneration) paid by December 24 of each year; and a minimum wage to be paid by March 15 on the coastal region (i.e. Guayaquil) and August 1st in the Sierra (Quito), and Amazon regions.

Employees can choose, in January of each year, if they want to receive these over wages on said dates or prorated every month.

Yes. All labor relationships are subject to a Social Security contribution to be paid over any and all components of the employee’s remuneration (this includes fixed and contingent wages, bonuses, transportation, etc.). For full-time, indefinite contracts, as follows:

-       Employee: 9.45%

-       Employer: 11.15%

Yes, employees have the right to 15 consecutive days of paid vacations (to be enjoyed after the first year of work), with one day increasing every year (up to 30) from their 15th year of work.

Yes, Ecuadorian laws provide that employees, including complementary services personnel, are entitled to 15% of the company’s pre-tax profits, due in April of the following year.

Even if a company has no employees, some Authorities have stated that said funds need to be deposited in a government account.

No, labor relationship conflicts can only be mediated before a Government Approved Mediation Center, or tried before a labor judge.

Competent judges are:

• If against the employee, the employee’s domicile judge.
• If against the employer, or any of its representatives: wherever the company has a legal establishment.