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NEWS AND BULLETINS

NEW AGREEMENT WILL RULE THE ADMINISTRATIVE PROCEDURE FOR TERMINATION OF EMPLOYMENT WITH CAUSE, COMMONLY REFERRED TO AS “VISTO BUENO”

By Tobar ZVS en LABOR CONSULTANCY .

On March 26, 2024, Ministerial Agreement MDT-2024-04 was published in the Second Supplement to Official Gazette 526. This agreement will rule the administrative procedure for termination of employment with cause, commonly referred to as “Visto Bueno”

The new agreement repealed the Ministerial Agreement MDT-2021-219 dated August 13, 2021.

The new Ministerial Agreement differs from the previous regulation, mainly, in the following aspects:

  1. Suspension of the employment relationship.- The authorization of the labor inspector is required for suspending the employment contract. The employer must provide justification for the need to suspend the contract.
    If the labor inspector approves the suspension, the employer will have 48 hours to deposit the amount equal to one (1) month of the employee’s remuneration.

  1. Serving of the “Visto Bueno” request.– The employees’ dependents, workers, or relatives may also be served with the “Visto Bueno” request on behalf of the employee.

  1. Authorization for representation. – It is mandatory for attorneys to be granted with a PoA in order to represent their clients.

  1. Firefighters’ right to appeal. – In cases set in Art. 623 of the Labor Act, i.e., employees of the Ecuadorian Fire Departments, a term of 3 days will be granted to appeal the decision of the Labor Inspector in front of the Regional Direction of Employment and Public Service.

© 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.

RELATED ARTICLES

NEW MINISTER OF LABOR REPEALED SIX (6) MINISTERIAL AGREEMENTS S ...

On December 4th, 2023, the new Minister of Labor, Ivonne Núñez, repealed the Ministerial Agreements signed by former Ministry of Labor, Patricio Donoso Chiriboga on November 21st, 2023.

 

As follows, a detail of the repealed Ministerial Agreements:

 

  1. Ministerial Agreement MDT-2023-156: Guidelines to regulate the special employment agreement for employees near to retirement.

 

  1. Ministerial Agreement MDT-2023-157: Guidelines to regulate the employment agreement for call centers.

 

  1. Ministerial Agreement MDT-2023-158: Reforms to regulation of the entrepreneurship employment agreement.

 

  1. Ministerial Agreement MDT-2023-159: Reforms to technical regulation of the employment termination with cause approval procedure (“Visto Bueno”).

 

  1. Ministerial Agreement MDT-2023-160: Reforms to regulation for the special employment agreement for productive sectors.

 

  1. Ministerial Agreement MDT-2023-161: Guidelines for the application of workday schedules.

 

© 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.

By ZVS Tobar in LABOR CONSULTANCY

ORGANIC LAW FOR SALARY EQUALITY BETWEEN WOMEN AND MEN ...

On January 22, 2024, the Organic Law for Salary Equality between Women and Men was published in the Official Gazette.

Here is what you need to know:

  1. The main criteria for establishing that a job will be considered of equal value to another are equality in: (a) skills and qualifications; (b) working conditions; (c) effort; and (d) responsibility.

  1. New obligations for employers:

    • Mandatory and continuous training related to the labor rights of men and women, gender equality, eradication of violence, and non-discrimination in the workplace, among others.

    • Develop actions aimed at raising awareness and visibility of the value of work performed without discrimination between men and women.

    • Report annually on actions and compliance with guidelines to achieve pay equality.

  1. New obligations that the Ministry of Labor must implement within the next 60 days:

    • Issue a certificate of compliance with salary equality.

    • Establish procedures for receiving claims or complaints from workers whose rights have been violated.

    • Establish procedures to sanctions the non-compliant employers.

  1. In the event of verification of the violation of the right to pay equality, the employer will pay the worker the corresponding difference in remuneration, retroactively, and establish the new remuneration on an equal basis.

  1. The Ombudsman of Ecuador will implement processes of observation, monitoring, and defense of the Law.

  2. Declare September 18th as the “Day of Equal payment ” in Ecuador.

 

© 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.

By ZVS Tobar in LABOR CONSULTANCY

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