© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.

On December 15, 2023, the Ministry of Labor fixed the minimum statutory wage (“SBU”) for 2024 at US$460.00.

The salary increase is equivalent to 2.223% with respect to year 2023, considering the projected economic growth and inflation rates, such increase percentage shall be applied for the calculation of the minimum sectorial commissions wages.

© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.

On May 20, 2024, Ministerial Agreement MDT-2024-060 issued by the Ministry of Labor (hereinafter referred to as the “Agreement“) was published in Official Supplement 561.

The Agreement contains the new technical standard for the implementation of the preferential employment right as established in the Organic Law for the Planning and Integral Development of the Special Amazon Territorial Circumscription (hereinafter referred to as the “Law“).

Below are the key points outlined in the Agreement:

1. Special Amazon Territorial Circumscription

Institutions, whether public, private, mixed, or community-based, operating within the provinces of Morona Santiago, Napo, Orellana, Pastaza, Sucumbíos, and Zamora Chinchipe (hereinafter referred to as “mandatory employers“), are obligated to adhere to the provisions set forth in the Agreement.

2. Preferential Employment Right

The 80% of the workforce of mandatory employers must consist of Amazonian residents, distributed as follows:

• 60% from local residents, defined as inhabitants within the area of influence;
• 20% from residents of the province where operations are conducted; and,
• 20% from other Amazonian residents.

This provision does not apply if there is a lack of qualified workforce as stipulated in Article 41.1 of the Law.

3. Amazonian Residents

Amazonian residents include:

• Individuals belonging to Amazonian peoples and nationalities;
• Those born within the circumscription;
• Individuals who have resided for at least the past 6 years or have been registered in at least the past 3 electoral processes within the circumscription.

4. Inclusion of Amazonian Peoples and Nationalities

At least 10% of the workforce of mandatory employers with more than 25 workers must consist of individuals belonging to Amazonian peoples and/or nationalities.

5. Personnel selection process

Mandatory employers must use the “Public Employment Service” platform of the Ministry of Labor for hiring personnel.

If the required personnel are not available, the Ministry of Labor will certify the non-existence, which will serve as a document enabling application for legal exception.

6. Sanctions

Non-compliance will be penalized by the Ministry of Labor with fines according to the annual income of mandatory employers of up to 256 mandatory statutory wages (currently $117,760 USD).

Recidivism will be penalized with double the fine.

© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.

On October 22, 2024, through Ministerial Agreement MDT-2024-200, the Ministry of Labor authorized changes to the workday schedule in Ecuador due to the ongoing electrical crisis. The new work schedule options are as follows:

• Monday to Thursday: from 7:00 AM to 5:00 PM.
  
  
• Thursday to Sunday: from 7:00 AM to 5:00 PM.

Work shifts must not exceed 40 hours per week. Any hours worked beyond this limit must be compensated with the corresponding legal surcharges.

Here are the main conditions for implementing the Electric “Pico y Placa” system:

• Mutual agreement: The workday schedule modification must be mutually agreed upon by both the employee and the employer, and a temporary amendment to the employment agreement must be signed.
  
  
• Mandatory weekly rest: Employees are entitled to an additional rest day, resulting in three consecutive days off.
  
  
• Duration: There is no fixed deadline for this measure. Agreements will end either once the energy crisis is resolved or by mutual agreement of the parties.
  
  
• SUT Registration: The agreement must be registered in the Unified Labor System (SUT) within 30 days of signing the agreement.

© TobarZVS 

This publication contains information of general interest and does not constitute legal opinion on specific issues. Any analysis will require legal advice from the Firm.