Ecuador

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Country Snapshot

The GPS Country Snapshot includes 25 sections of information about labor law compliance in Ecuador. See a sample of popular sections below.

Termination of Employment

It is not mandatory to give notice to terminate a contract. Both employers and employees can terminate a contract without notice by paying a sudden dismissal bonus. Fixed-term contracts can be terminated by giving a notice of at least 30 days by the employer and 15 days by the employee. In case of termination without notice, employers must pay the employees compensation equal to 25% of their last monthly remuneration for each year of service with the employer. This compensation is in addition to any severance pay to which the employee is entitled.

Work Permits

Foreign nationals wanting to work in Ecuador are granted a temporary residence visa valid for up to 2 years, provided they submit proper documentation. Foreign employees who wish to work in public sector require special permission from the Ministry of Labor, while those working in private sector do not require any special permission.

Paid Annual Leave

All female employees in Ecuador have the right to 12 weeks paid maternity leave - two weeks before delivery and ten weeks after, extended by ten days in case of multiple births. They must submit a medical certificate issued by a doctor from the Ecuadorian Institute of Social Security (IESS), stating the probable date of delivery. In case of any premature birth or delivery under conditions of special care, maternity leave is extended by at least eight days. If the child is born with a degenerative, terminal or irreversible disease or with a degree of severe disability, the parent may take a leave of absence with pay for 25 days.

The benefits for maternity leave are paid by IESS at the rate of 75% of the wages of the employee for the duration of maternity leave. Remaining 25% is paid by the employers. Employees must have paid 12 consecutive monthly contributions, within the 12 months before prenatal rest.

Employers are prohibited from dismissing pregnant employees and those who are on maternity leave, except for liquidation or disability that makes them unable to work.

Working Hours

Standard working hours are eight hours per day or 40 hours per week. For underground works, maximum working hours are six hours a day. The working day for adolescents may not exceed six hours a day for a maximum period of five days a week. Two days' paid weekly rest is mandatory. Higher or lower working hours can be determined by collective agreements.

If an employee stops working eight hours a day without justified reason, he/she loses proportional part of remuneration. When work is interrupted due to accidental or unforeseen causes, force majeure or other reason beyond the control of employers and employees, employers have the right to increase working hours by three hours a day to recover the lost time without liability for overtime pay.

Maternity Leave

All female employees in Ecuador have the right to 12 weeks paid maternity leave - two weeks before delivery and ten weeks after, extended by ten days in case of multiple births. They must submit a medical certificate issued by a doctor from the Ecuadorian Institute of Social Security (IESS), stating the probable date of delivery. In case of any premature birth or delivery under conditions of special care, maternity leave is extended by at least eight days. If the child is born with a degenerative, terminal or irreversible disease or with a degree of severe disability, the parent may take a leave of absence with pay for 25 days.

The benefits for maternity leave are paid by IESS at the rate of 75% of the wages of the employee for the duration of maternity leave. Remaining 25% is paid by the employers. Employees must have paid 12 consecutive monthly contributions, within the 12 months before prenatal rest.

Employers are prohibited from dismissing pregnant employees and those who are on maternity leave, except for liquidation or disability that makes them unable to work.

Minimum Wage

Minimum wage is determined by the National Wage Council in Ecuador as Unified Basic Salary that represents the minimum living wage that is enough to satisfy the normal needs of the employee's life. No employee can be paid less than the minimum wage. The unified basic salary is USD 460 per month for 2024.

Country Profile

The GPS Country Profile contains detailed information on over 60 topics related to labor law compliance within Ecuador.
  • Type of Employment Relationship
  • Permanent Employment
  • Fixed-Term or Specific-Purpose Contracts
  • Temporary Employment Contracts
  • Part-time Employment
  • Young Worker Employment
  • Vendors and Independent Contractors
  • Types of Contracts
  • Probationary Period
  • Termination of the Contract of Employment
  • Grounds for Termination
  • Notice of Dismissal
  • Fair Dismissal
  • Redundancy
  • Unfair Dismissal
  • Suspension of Contract of Employment
  • Severance Benefits
  • Hours of Work
  • Work Week and Timekeeping
  • Night Work and Shift Work
  • Overtime
  • Remote Work
  • Required Time Off
  • Public Holidays
  • Annual Leave
  • Sick Leave
  • Maternity
  • Other Forms of Leave
  • Social Insurance and Retirement
  • Social Security Contribution
  • National Retirement Scheme
  • Dependents’/Survivors Benefit
  • Life and Disability Insurance/Benefit
  • Statutory Allowances
  • Compensation and Benefits
  • Minimum Wage (Basic Wage)
  • Bonuses, Profit Sharing and Other Compensation
  • Medical Insurance
  • Work Environment
  • Workplace Safety and Health
  • Prohibition of Discrimination
  • Prohibition of Harassment
  • Data Protection and Privacy
  • Whistleblowers and Retaliation
  • Workers’ representation in the organization
  • Freedom of Association
  • Registration and Recognition of Unions
  • Trade Union Personality
  • Collective Bargaining and Agreements
  • Disputes and Settlements
  • Strikes and Lockouts
  • Unfair Labor Practices
  • Taxation of Compensation and Benefits
  • Income Tax
  • Taxation of Employee Benefits
  • Tax Filing and Payment Procedures
  • Double Tax Relief and Tax Treaties
  • Visas and Work Permits
  • Visas
  • Work Permits and Residence Permits

 Country Snapshot

Get the full Country Snapshot with 25 sections of information about labor law in Ecuador.