Ecuador: Regulation For The Implementation Of The Organic Law Promoting Youth Employment, Exceptional Working Day, Severance And Unemployment Insurance

Last Updated: 23 September 2016
Article by Daniel A. Palbuchta

The Labour Ministry, through the supplement to Official Gazette No. 820 dated 17 August 2016, has issued the regulation for the implementation of the Organic Law Promoting Youth Employment, exceptional working day, severance and unemployment insurance.

Hereunder a summary of the highlights of the previously mentioned norm:

Youth employment

  • Youth employment contracts shall be understood as those concluded with people between 18 and 26 years old, regardless of whether the contract´s completion is subsequent to the date in which the hired person turns 27 years old.
  • With the purpose of being elegible to the benefit embedded in Article 34.3 of the Labour Code, which establishes that the payment of the employer´s contribution to the welfare system in youth employment contracts shall be covered by the State up to two unified basic monthly salaries in general for one year (provided that the number of youth employment contracts does not exceed the 20% of the total of the payroll of the company), the contract entered into with youngsters aged between 18 and 26, shall be concluded in writing and registered on the Computerised system of the Labour Ministry.
  • The minimum number of young workers to be associated to each company regarding the net increase of workers generated on each final year, will result from the application of the following chart, in accordance with the respective activity:

1. AGRICULTURE AND FIELDS 3 for every 10

2. LIVESTOCK PRODUCTION 2 for every 10





AND CHEMICALS 2 for every 10


PRODUCTION 2 for every 10




12. ELECTRICITY, GAS AND WATER 1 for every 10

13. CONSTRUCTION 2 for every 10


15. TURISM AND FOOD 3 for every 10


17. FINANCIAL SERVICES 2 for every 10


19. TEACHING 1 for every 10


21 COMMUNITY ACTIVITIES 2 for every 10

In order to verify this association, the age of these workers to be taken into account is that at the time of linkage to the company.

Companies with less than 50 workers will not be subjected to control concerning a minimum percentage of youth employment.

Should the young employee be dismissed before twelve months of work, the employer shall return the amount subsidised by the Sate within -and up to- 30 days.

The mentioned amount shall not be returned only in the following scenarios:

  • Disassociation by termination requested by the employee;
  • Death or visto bueno (request for termination of contract) against the employee.

Internships in institutions, companies and foundations in the private sector

Internships should be taken to be the pre-professional training performed by students of higher education institutions in companies, institutions and foundations of the private sector with the purpose of applying their knowledge, developing their skills and specific abilities necessary to the fulfilment of their future career.

Companies with more than 100 stable employees are obliged to associate a number of interns not below 2% of the workers that hold a professional degree. The number resulting from the application of the mentioned percentage will be calculated concerning the workers that the company had at the beginning of the fiscal year and it can be complied with any time of the year considering that interns cannot hold that position for more than six months.

Inobservance of such requirement shall be sanctioned in accordance with Article 628 of the Labour Code por each month of inobservance and for each intern missing in order to complete the number to be reached by the company.

Extended working day

Extended working day enables work to be performed for more than eight hours a day, provided that the extension does not exceed forty weekly hours, nor ten hours a day, in schedules that can be distributed irregularly in five days a week, as long as mandatory rest is guaranteed for two consecutive days.

The hours that exceed the limit of forty weekly hours or 10 a day, shall be payed in accordance with Article 55 of the Labour Code.

This working day is only feasible when there is agreement in writing. The extended working day is to be applied exceptionally and, therefore, cannot be prolonged for more than six months in each fiscal period, except for express renovation of the agreement between the parties.

This working day excludes teenagers, pregnant women and people who, due to disability, cannot work under this regime. in addition to this, the extended working day shall not be applied to employees who work underground and in activities which, because of their nature, are to be performed during a determined period of time. In order to apply the extended working day, such request must be presented before the Regional Labour Director or the provincial delegate of the Labour Ministry and it must be accompanied by:

  • Agreement concluded between the parties, which must contain the specific new working day to be applied, the schedule in which it will be performed, the days in which the employee will undertake the task, the period during which the working day will last and the guarantee of receiving a minimum of 48 hours of mandatory rest. Should these requirements be met, the petition shall be approved immediately, otherwise, it will be denied, which allows the submission of a new request that meets all of the afore mentioned criteria.

Reduced working day

  • This modality is only applicable when companies have legitimately justified its necessity due to circumstances in which it is indispensable to temporally reduce costs or expenses of the company in order to guarantee an appropriate performance.
  • Should employers decide to adopt this measure, they shall present their request before the Regional Bureau of Labour, which must contain:
    • Identification of the authority to whom the petition is addressed to; o Full name of the employer´s firm and its legal representative;
    • Explanatory statements that justify the application of the measure; o Austerity plan to be executed by the company in order to change its status, including the additional measures that had been taken or will be taken with the purpose of facing the situation which motivates the reduction of the working day;
    • Specification of the time the reduced working day will last;
    • Schedule in which the working day will be performed.
  • The documents that must be presented are the following:
    • Agreement concluded between the parties, duly signed; o Last payed income tax filing; o Six last value-added tax filings; o Document that reflects up-to-date compliance with employer contributions.
  • Once the mentioned information has been presented, the Regional Labour and Public Service Director will verify whether they meet the respective criteria.
  • If the petition is not clear or does not meet the criteria, the authorities can request clarification of the request within 3 days.
  • The decision must be made within three days.

License or unpaid leave for childcare

  • This figure can be granted to both mother or father, starting from the termination of the maternity or paternity leave, respectively, until the date in which nine months have passed after the termination of those leaves.
  • Should the license be granted for a period shorter than nine months, it can be extended for one time only provided that it does not surpass the date previously mentioned. For this purpose, the mother or father shall present the respective petition 15 days in advance to the completion of the granted license or unpaid leave.
  • Once the license or unpaid leave ends, the female worker can invoke the breastfeeding leave embedded in Article 155 of the Labour Code at any moment before 12 months after giving birth have passed. However, in order to receive the benefits of severance, this shall be requested within the three days after the termination of the license or maternity/paternity leave.

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

Click to Login as an existing user or Register so you can print this article.

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”

Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions