Ecuador (EC)
Ecuador is one of the most popular expat countries in the Americas in 2026, especially for retirees, remote-income households, investors, teachers, entrepreneurs and families who want US-dollar living, affordable private healthcare, varied climates and established foreign-resident communities.
Employment Rights
Sick leave, dismissal protection and red flags in Ecuador.
Ecuador employment law is governed by the Código del Trabajo (CT), overseen by the Ministerio del Trabajo (MDT). All employees must be registered with the Instituto Ecuatoriano de Seguridad Social (IESS). Key features: strong protection against unjustified dismissal, mandatory profit sharing (15% of company profits), 13th-month salary (décimo tercero), 14th-month salary (décimo cuarto), and the Salario Básico Unificado (SBU) of USD 482/month from January 2026. Foreign workers require an employment visa (10-IX) or relevant work permit matching the role. Labour disputes are handled by Inspectorías del Trabajo for conciliation, then Juzgados del Trabajo (labour courts).
Sick leave
Rules: Employees absent due to illness must notify the employer and present a medical certificate from an IESS-affiliated physician or a licensed private doctor. The employer covers full salary for the first 3 days of illness. From day 4, IESS pays sickness benefit (subsidio por enfermedad) at 75% of the contribution base salary. To qualify for IESS benefit, the employee must have contributed for a minimum of 180 days in the 6 months before illness (or 189 days in the previous 8 months). Employer must maintain the employment relationship during illness; dismissal during certified sick leave is a cause of action for unjustified dismissal.
Doctor note: From day 1 — employee must notify employer of absence on the first day and present a medical certificate issued by an IESS policlínico or licensed private physician within 3 days. For IESS subsidy, an IESS-issued incapacity certificate (certificado médico de reposo del IESS) is required from day 4.
Employer pay: Days 1–3: employer pays 100% of contracted salary. From day 4: IESS pays 75% of the contribution base; employer must top up from the 4th day if the collective agreement or contract requires it. Maximum employer obligation: 3 days per sickness episode.
Long-term: IESS sickness benefit continues up to 182 days per illness episode (renewable with IESS approval). For permanent disability, IESS Seguro de Invalidez provides a pension of 40–70% of the reference salary depending on degree of incapacity and contribution history. Workers must apply to IESS Departamento de Riesgos del Trabajo or Seguro de Invalidez.
Dismissal protection
Law: Código del Trabajo Art. 188–193: unjustified dismissal (despido intempestivo) entitles the worker to indemnity = 3 months' salary for years 1–3, plus 1 additional month per year of service (max 25 months total). Justified dismissal requires the employer to obtain a visto bueno from the Inspectoría del Trabajo. Protected categories: pregnant women (inamovilidad from notification to 12 months post-birth); union representatives; workers within 6 months of retirement. Employers must pay all outstanding wages and benefits on the termination date.
Deadline to sue: Unjustified dismissal and unpaid wage claims: 3 years from the date the right becomes enforceable (Código del Trabajo Art. 635). File at the Juzgado del Trabajo of the province where work was performed. Conciliation attempt at Inspectoría del Trabajo recommended first. Bring: employment contract, payslips (roles de pago), IESS contribution history, and dismissal documentation.
Probation
Trial period (período de prueba): maximum 90 days under Código del Trabajo Art. 15. During probation, either party may terminate without cause and without severance or indemnity — but employee remains entitled to proportional accruals (décimo tercero, vacation, etc.) for days worked. After 90 days, full labour protections apply. Employer must not misuse repeated short contracts to extend probation beyond the legal 90-day limit. After probation ends: notice for employer termination is contractual; wrongful dismissal triggers visto bueno procedure or indemnity of 3 months' salary + 1 month per year of service.
Notice periods
Ecuador does not have a statutory graduated notice period for regular indefinite contracts. Employer must obtain a visto bueno from the Inspectoría del Trabajo for justified dismissal. Without visto bueno, dismissal is unjustified regardless of reason — triggering the 3-month + 1-month/year indemnity. Employee resignation: standard courtesy notice is 30 days but not legally mandated; employer may seek damages for abrupt resignation causing harm.
Working time
Max hours: 40 hours per week (Código del Trabajo Art. 47, as amended). Standard daily limit: 8 hours. Night work (19:00–06:00): maximum 7 hours per night, paid at a 25% premium. Workers in hazardous sectors have reduced hours per sector-specific regulations. Maximum overtime: 4 hours/day and 12 hours/week under CT Art. 55.
Min rest: Minimum 12 consecutive hours between shifts (CT Art. 34 — the "continuous rest" rule). Mandatory at least 1 full rest day per week (Sunday is the default, but it can be substituted by agreement). Annual national holidays: 12 mandatory paid holidays. Workers who work on mandatory holidays are entitled to triple pay.
Overtime: Overtime (horas suplementarias): hours 41–48/week paid at 150% (time + 50%). Extraordinary hours (horas extraordinarias): beyond 48 hours or at night paid at 200% (double time) under CT Art. 55. Maximum 4 hours/day overtime. Overtime must be agreed in writing; habitual undeclared overtime is a Labour Inspectorate violation.
Vacation
Minimum 15 working days paid annual leave after 1 year of service. One additional day per year of service after the 5th year (up to a maximum of 30 days total). Vacation cannot be waived — denial by employer creates liability. Vacation pay = regular salary + a 25% vacation premium. Thirteenth salary (décimo tercero): 1 month's salary payable by December 20 each year. Fourteenth salary (décimo cuarto): equal to the SBU (USD 482 in 2026), paid by March 31 in Sierra/Amazonía and August 31 in Costa/Galápagos. Profit sharing: 15% of net profits distributed to employees annually.
Anti-discrimination
The Constitution of Ecuador (Art. 11, 66) and the Código del Trabajo prohibit workplace discrimination on grounds of sex/gender, ethnicity, nationality, age, disability, marital status, pregnancy, religion, political opinion, sexual orientation and social status. Harassment (acoso laboral) and sexual harassment are criminal offences under the Código Orgánico Integral Penal (COIP). File discrimination complaints at the Inspectoría del Trabajo (MDT) or the Defensoría del Pueblo (defensoriadelpueblo.gob.ec). Criminal harassment: file with Fiscalía General del Estado. No fixed statutory deadline for discrimination claims — time-sensitive; act promptly.
Contract red flags
- !Employer asks you to start local work on tourist/visitor status without a work permit — working without an employment visa (10-IX) risks deportation and employer fines
- !Salary below the 2026 Salario Básico Unificado (SBU) of USD 482/month — this is the statutory floor; sector-specific minimums may be higher
- !Salary is split between payroll and cash or offshore payments with no SRI electronic payroll receipt (comprobante de pago electrónico) — IESS violations and tax risk
- !No IESS registration within 15 days of employment start — employer obligation under CT Art. 42(31); you should receive your IESS affiliation number
- !Contract says you are an independent contractor (contrato de servicios profesionales) but the arrangement shows subordination, fixed schedule and employer tools — false self-employment denies you CT and IESS protections
- !Décimo tercero, décimo cuarto, profit-sharing or overtime waived in the contract — minimum statutory rights are non-waivable under CT Art. 4
- !Employer holds your passport, visa documents or original degree certificates — illegal; refuse
- !Probation period stated as more than 90 days — 3 months is the legal maximum under CT Art. 15
- !Settlement document (acta de finiquito) presented in Spanish only without translation, or signed before full payment is made — always wait for liquidación completa
- !Non-compete or penalty clauses that are indefinite or tied to immigration threats (e.g., cancellation of work visa)
Employment Rights
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