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Legal coverage
Fixed-term contracts (FTCs)

Motifs autorisés (licenciement justifié):

Remarks

Motifs prohibés:

Travailleurs bénéficiant d'une protection particulière:

Severance pay:

Remarks

According to articles 185 and 188 of Labour Code, severance pay shall be paid considering lenght of service:
1) Up to three years of service, with the value corresponding to three months of remuneration; and,
(2) Over three years, with the value equivalent to one month of remuneration for each year of service, without in any case that value exceeding twenty-five months of remuneration.

Bonus for “desahucio” is due in the amounts to 25% of last monthly salary per year of service (which would be paid in case of desahucio according to article 184 of Labour Code).

If dismissal is for an alleged just cause but the prior approval (“visto bueno”) of Labour Inspector is denied, then an additional amount of one monthly salary deposited by the employer is paid to the employee, in addition to severance pay and bonus for desahucio. This situation only applies if the employer requests the suspension of the employee during the prior approval (“visto bueno”) procedure.

tenure ≥ 6 mois: 1 mois.

tenure ≥ 9 mois: 2 mois.

tenure ≥ 1 an: 3 mois.

tenure ≥ 2 ans: 4 mois.

tenure ≥ 4 ans: 6 mois.

tenure ≥ 5 ans: 7 mois.

tenure ≥ 10 ans: 12 mois.

tenure ≥ 20 ans: 22 mois.

Redundancy payment:

Remarks

There is no specific provisions concerning redundancies, but in case of dismissals generated by closure of enterprises, the employer must pay severance compensation for unjustified dismissal (despido intempestivo) and the indemnity correspondent to desahucio (articles 185, 188 and 193 of Labour Code).

tenure ≥ 6 mois: 1 mois.

tenure ≥ 9 mois: 2 mois.

tenure ≥ 1 an: 3 mois.

tenure ≥ 2 ans: 4 mois.

tenure ≥ 4 ans: 6 mois.

tenure ≥ 5 ans: 7 mois.

tenure ≥ 10 ans: 12 mois.

tenure ≥ 20 ans: 22 mois.

Notes

Section 188 of Labour Code provides rules for unjustified dismissal (“despido intempestivo”), providing that no prior notification is given.
According to the labour law of Ecuador, desahucio is a notice to be given when either party terminates the employment agreement without providing just cause for the termination. The party who decides to terminate must request a Labour Inspector to notify the other party about the termination, according to Sections 184, 545 (5) and 624 of Labour Court).