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NEWS AND BULLETINS

REFORMS TO THE EMPLOYMENT TERMINATION FOR CAUSE REGULATIONS

By Tobar ZVS en LABOR CONSULTANCY .

On March 19, 2025, Ministerial Agreement No. MDT-2024-041 was published in the fourth supplement of the Official Register No. 01, establishing the regulations governing the administrative process for employment termination due to just cause.

 

These reforms aim to streamline the procedure and align it with the formal requirements set forth in the General Organic Code of Processes (COGEP).

 

Key aspects of the reform:

 

  1. Requirements for the Approval Request:

 

    • Power of attorney, if acting through a legal representative or judicial attorney.

    • Supporting documents proving representation if the applicant is legally incapacitated.

    • Legible copy of the applicant’s identity card, passport, or Taxpayer Identification Number (RUC).

    • Available evidence supporting the claim, including all relevant details for consideration.

    • Other documents required by law depending on the case.

    • Updated compliance certificate from the IESS (for employers).

 

  1. Hearing Process: Defined Phases:

    • Preliminary phase, Validation of procedural requirements, presentation of preliminary exceptions, and determination of the discussion points.

    • Evidence and final arguments.

 

  1. Appeals: Key Changes:

 

    • Any affected party may now file an appeal against Labor Inspector´s resolution. This right is no longer exclusive to Fire Department Chiefs.

    • The Regional Labor Directorate has one (1) month to resolve the appeal.

    • Parties may request a hearing during the appeal process.

 

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NEW MINISTER OF LABOR REPEALED SIX (6) MINISTERIAL AGREEMENTS S ...

On December 4th, 2023, the new Minister of Labor, Ivonne Núñez, repealed the Ministerial Agreements signed by former Ministry of Labor, Patricio Donoso Chiriboga on November 21st, 2023.

 

As follows, a detail of the repealed Ministerial Agreements: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

NEW AGREEMENT WILL RULE THE ADMINISTRATIVE PROCEDURE FOR TERMIN ...

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.

By ZVS Tobar in LABOR CONSULTANCY

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