The Ecuadorian Congress has recently approved the publication of interpretative Law No. 2002-88 in Official Register No. 689 on October 23, 2002. This new law holds that Article 113 of the Ecuadorian Labor Code entitles employees to a "fourteenth" bonus; equivalent to one basic unified salary for general laborers.
The establishment of this additional remuneration stems the family wage earner’s economic needs during the back-to-school period, which are often not met by the employee’s normal monthly salary.
Although the Organic Legislative Functions Law establishes that the Ecuadorian Congress can interpret laws (and thus the above mentioned interpretative law has presumably complied with the prerequisites when it was published in the Official Register), the passage of this law has engendered political controversy. Because interpretive laws are deemed to have retroactive effect, the economic consequences of this new law to employers and the government are substantial, as neither of these sectors has budgeted for this global bonus. This law, although now in effect, will mostly be appealed to the Constitutional Tribunal. This entity will then have the duty to determine whether of not interpretative Law No. 2002-88 violates the Ecuadorian Political Constitution.
Constitutional arguments will be based on the assertion that this law is not just interpretative but a substantial modification to the Labor Code. For in light of the fact that minimum salary (as established by the code) has not been overturned, the law should have been presented to the President for his approval or partial/total veto.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On November 13, 2012, for the first time in 40 years, after extensive consideration by both Mexico’s House of Representatives and its Senate, the Senate approved a significant labor reform bill, with far-reaching and substantive implications for foreign companies doing business in Mexico and local Mexican employers alike.
Argentine law governs all labor activities in Argentina,
regardless of where the employee was first hired or where the
employment contract was entered into or signed, as well as the
On November 29, 2012, departing Mexican President Felipe de Jesús Calderón signed a comprehensive reform of México's Federal Labor Law (FLL), instituting more than 300 changes, effective December 1, 2012.
A new Venezuelan Labor Law came into force on Monday May 7th, 2012 as a result of its publication in the Official Gazette No. 6.076 of the Bolivarian Republic of Venezuela.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”