In the Official Gazette No. 234 of January 20th, 2023, was published the “Organic Law to promote Women’s opportunities and the Violet Economy” (hereinafter, the “Violet Law”).
As follows, what needs to be known about the Violet Law:
✓ LABOR ASPECTS
1. Government obligations
– Guarantee labor equality between women and men through public policies.
– Generate incentives for women’s participation in different areas of society.
– Design and implement employment policies that shall be oriented to increase women’s labor participation.
– Employers’ recognition. – The Ministry of Labor shall create an award to recognize entities standing out on the implementation of equal treatment and opportunity policies.
2. Employers’ obligations
– Measures to prevent sexual harassment in the workplace.– Employers with more than 25 employees must establish specific regulation – codes of best practices, protocols, informative campaigns – aimed to prevent and address complaints on this matter.
– Equality plan.- Employers with more than 50 employees must have an equality plan in accordance with the provisions of the Violet Law, which shall be registered before the Ministry of Labor.
– Function designation and promotion procedure.- Employer must establish the job position profile and a clear process for measuring objectives in order to establish salary increases or promotions, without discrimination.
– Dependent children care service. – Employers with more than 50 employees must provide a care service for dependent children.
3. Employers’ prohibition. – In the selection processes, the Employer may not (i) request information not related to the abilities and responsibilities necessary for the job, nor (ii) ask discriminatory questions.
4. Shared maternity leave. – The parents may agree to share the 12 weeks of maternity leave. The father may take up to 75% of the maternity leave, i.e., up to 9 weeks.
5. Shared breastfeeding leave. – The parents may agree to share the breastfeeding leave. The father may fully enjoy the benefit or share it with the mother.
6. Mandatory intern’s quota. –
– In order to comply with the mandatory quota of interns, the employees under a dual education modality shall be considered.
– Female interns shall have an additional 0.5 to the total quota sum.
7. Equal remuneration. – The Violet Law clarifies the conditions that shall be met to apply the equal remuneration principle. That means, same (i) functions, (ii) professional conditions (training) and (iii) performance equality.
✓ TAX ASPECTS
8. Remunerations and contribution to Social Security -IESS- that corresponds to women hired for new positions shall be deducted up to an additional 140%, depending on the time of permanence of the employee.
9. If the new positions of women hired reach 50% of the total payroll, Employers shall be able to enjoy the tax incentive for up to 3 fiscal years.
✓ CORPORATE ASPECTS
10. Companies that within their corporate structure have 3 or more members on their Board of Directors shall ensure that for every 3 members one (1) of them is a woman.
For more information do not hesitate to contact our Labor Practice Director, Marta Villagómez (email@example.com).
This publication contains information of general interest and may not constitute a legal opinion on specific matters. Any particular analysis, shall require legal advice from the Firm.