January 11, 2024

Labor Developments in the New Year

Internal publications

Labor

 

  1. The Ministry of Work published the Table of Sectoral Minimum Salaries, which can be accessed at the following link.

 

  1. As of January 1, 2024, the Consolidated Basic Salary is USD 460 per month.

 

  1. The Ministry of Work has unofficially circulated a Guide for Equality Plans for companies. A resolution and a definitive text are expected soon. According to the Law to Promote the Violet Economy, all companies that have more than 50 employees must register their Equality Plans with the Ministry of Work by January 20, 2024.

 

  1. In decision 3-23-OP/24 on Friday, January 5, 2024, the Constitutional Court rejected the partial objection for unconstitutionality on the merits brought by the former president of Ecuador against certain norms of the reform to the Organic Law for the Planning of the Special Amazon Territory. The Court:

 

  • a) Declared the constitutionality of the right to preferential employment by which employers that carry out their activities in the jurisdiction of the Special Amazon Territory must hire at least 80% of the total payroll from workers resident in said Territory.
  • b) Declared the constitutionality of the progressive inclusion in up to 10% of the workforce of people who belong to indigenous peoples and nationalities of the Territory.
  • c) Declared the constitutionality of the penalties for non-compliance with preferential hiring within the Special Amazon Territory in accordance with the annual income of the employer and which may reach a maximum of up to 256 consolidated basic salaries (USD 117,760).
  • d) Declared the unconstitutionality of the requirements for a natural or legal person to be classified as a local supplier or producer in the Special Amazon Territory.
  • The National Assembly must now issue a decision, within the legal timeframes, on the partial objection by the former president of Ecuador, and adapt the draft to the Constitutional Court’s ruling of partial unconstitutionality.  

 

  1. The online Work System (“SUT” in the Spanish acronym) continues to be intermittent and is partially enabled.

 

  1. The President of Ecuador presented a question in a referendum concerning the regulation of fixed term employment contracts (eliminated in 2015) and hourly-rate contracts (eliminated by Order 8 and prohibited by the current Constitution).

Editorial Board

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