ECUADOR Law and Practice Contributed by: Sebastian Corral Guevara, Miguel Pizarro Páez, María Fernanda Mencías Pérez, José Cisneros Pazmiño, Roque Bustamante Espinosa and Jorge Pizarro Páez, Flor Bustamante Pizarro & Hurtado
4.3 Working Time The ordinary working time in Ecuador is eight hours per day and 40 hours per week. However, the Labour Code establishes several special working time regimes depending on the nature of the activity or the operational needs of the employer. These include reduced working hours (subject to prior authorisation from the Ministry of Labour in exceptional circum - stances), extended working days of up to ten hours per day provided that the weekly limit of 40 hours is not exceeded, special shifts for activities requir - ing continuous operations, part-time employment, night work, transportation services and underground mining. Adolescent employees (15–18 years old) may work a maximum of six hours per day and 30 hours per week. Night work performed between 7 pm and 6 am is sub - ject to a 25% wage surcharge. Employees working continuous shifts are entitled to at least 48 consecu - tive hours of weekly rest. Hours worked in excess of the ordinary working schedule constitute overtime. Supplementary hours worked immediately after the ordinary working day are generally limited to four hours per day and 12 hours per week and are compensated with a 50% surcharge (or 100% when worked between midnight and 6 am). Extraordinary hours worked on mandatory rest days or public holidays are generally paid with a 100% sur - charge. Remote work is recognised under Ecuadorian law and may be performed on an autonomous, mobile, partial or occasional basis. Employees enjoy the same rights as on-site workers, including the right to digital dis - connection for at least 12 consecutive hours within each 24-hour period. Although the Labour Code does not expressly recog - nise a compressed four-day work week, recent min - isterial regulations have introduced procedures allow - ing flexible distribution of the 40-hour weekly working schedule, including daily shifts of up to ten hours in authorised cases.
4.4 Termination of Employment Contracts Ecuador is not an employment-at-will jurisdiction. Employment contracts may only be terminated on the grounds expressly established in the Labour Code, including mutual agreement, expiration of a valid fixed-purpose contract, resignation, justified termina - tion through the visto bueno procedure, force majeure, permanent incapacity or death of the employer or employee, and business closure in the circumstances provided by law. Unjustified dismissal entitles the employee to statu - tory severance compensation, calculated according to the employee’s length of service and remunera - tion, together with payment of all accrued employ - ment benefits, including proportional 13th and 14th salaries, unused vacation and any other outstanding statutory entitlements. Ecuadorian law does not establish a separate col - lective redundancy procedure. Workforce reductions are generally implemented through the ordinary ter - mination mechanisms provided by the Labour Code, including business closure or force majeure where the statutory requirements are met. Collective bargaining agreements may establish additional obligations. Trade unions participate in collective bargaining through the procedures established in the Labour Code. Once collective bargaining has commenced, employees participating in the process benefit from statutory protection against dismissal, while elected union officers enjoy special employment protection during their term of office and for one year thereafter. 4.5 Employee Representations Under Ecuadorian labour law, employers are not gen - erally required to inform or consult employees before adopting ordinary management decisions. Employee representation is mandatory only in specific circum - stances expressly provided by law, such as collective bargaining, trade union activities and certain admin - istrative or disciplinary proceedings. Companies employing ten or more employees must establish a Joint Occupational Health and Safety Com - mittee composed of an equal number of employer and employee representatives. Employee representatives
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