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.
This was made after reviewing two opposing resolutions issued by two different Circuit Courts, namely the resolutions issued by the 16th Labor Court of the First Circuit and the 1st Labor Court of the Nineteenth Circuit.
On August 19th, Chilean Congress approved, with 22 votes in favour and 14 opposing, a Labour Reform that will modify significantly the current provisions addressing unions and collective bargaining proceedings.
It is expected that by the end of 2015 a total of 42 billion electronic invoices will be processed globally – 25 billion of these would be processed in Latin America according to Billentis' report "Entering a new era".
"Garden leave" is a concept present in many foreign legal systems and encompasses the idea of an employee away from work and staying home during the notice period arising from his/her employment agreement termination.
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”