The self-employed worker law that prohibits confiscation enters into force. These are your six key points

from this On December 16, 2022, the Law for the Defense and Development of the Self-Employed Worker and the Retailer came into force (after its publication in the Official Gazette) after it was approved on November 17 by the current National Assembly. Its treatment process, from the debate and the entry into force, has lasted at least thirteen years.

Now, through this regulation, at least six key points for the work of this productive sector of society.

1. Duties and rights of retail merchants.
2. Creation, expansion and improvement of retail centers for collection, distribution and commercialization that have the necessary facilities, nurseries, medical centers, child development centers, among others.
3. A National Information and Registration System will be created.
4. Right of affiliation to the Ecuadorian Institute of Social Security (IESS) in a special regime with all the benefits.
5. They will have preferential financing of up to 25 basic salaries and access to the housing bonus.
6. Confiscation of products from self-employed workers and retailers is prohibited.

The new regulations were published in the third supplement of the Official Gazette No. 2113 published on December 16.

There it is remembered that the first debate had been held on June 23, 2009 by the National Assembly and that the second debate was held on October 26, 2010, being approved on February 14, 2011 by 103 votes. However, this bill was fully objected to by then President Rafael Correa on March 17, 2011. The then president argued that this law contained issues that were already addressed in the Popular and Solidarity Economy Law that was about to be sent to the Assembly.

In accordance with the current law on the subject of vetoes, the Assembly could have dealt with the issue one year after the total veto, however, he was encouraged to resume it only eleven years later, and approved it.

The law indicates that any natural person who, within the national territory, engages in self-employment and/or retail trade will be covered by this law.

The self-employed or self-employed worker is the person who carries out activities of manufacturing, production, distribution and/or commercialization of goods and/or provision of services, in a personal, itinerant or fixed, habitual or temporary manner, without a relationship of dependency and whose capital operation does not exceed 36 unified basic salaries of the private worker. On the other hand, the retailer has the same characteristics, but is considered a retailer because he sells and does not manufacture products.

Between the self-employed workers rights and retailers, it is named:

• Right to work using adequate spaces in accordance with the legal regulations issued by the decentralized autonomous governments.
• Free training in various occupational fields.
• Access to social security.
• Obtaining preferential lines of financing in the public sector up to 25 basic salaries.
• Access to preferential financing plans and programs for housing, through the financial entities of the public sector or the popular and solidarity financial sector and the respective ministries.
• Participation in the empty chair in accordance with the Constitution of the Republic.

As soon as to obligations of the people dedicated to these activities are established:

• Develop their activities in accordance with legal regulations issued by the decentralized autonomous governments.
• Market and distribute, preferentially, goods and/or services generated by national production.
• Submit to regulation and control processes.
• Respect the quality standards, as well as the weights, measurements and prices, of the goods and services they produce and/or market.
• Register, before the competent authority, in the National System of Information and Registration of self-employed workers and of retail merchants, in order to have a database that allows determining their condition and establishing and implementing public policies in your profit.

In summary, the State undertakes to guarantee the exercise of their rights, through the various levels of government.

The Autonomous Governments will include within their development plans, programs and projects and in their immediate annual budget, budget items for the creation, expansion, improvement and administration of product collection centers, distribution and marketing centers, commercial passages, fairgrounds and markets, in which the self-employed and retail traders carry out their activities. These establishments will have all the basic services, with child development centers, soup kitchens, medical centers, nurseries and training centers for the self-employed and retail traders.

An important article of the law is the one that prohibits all forms of confiscation, requisition, confiscation, seizure, appropriation, dispossession or any other punitive measure that involves the deprivation of manufacturing, producing, distribute and market goods and services, self-employed workers and retailers, andn public spaces authorized by the competent authority.

But they are also prohibited from manufacturing, producing, distributing and marketing all kinds of goods or services that are prohibited by law or are of dubious origin.

Additionally, the law establishes a series of transitory provisions with deadlines to fulfill various tasks.

Six months

The decentralized autonomous governments of the country within a period of six months, counted from the validity of this law, will harmonize their legal regulations in accordance with the Constitution and this law.

Twelve months

The State will put into operation a national program of training, technical assistance and financing in order to improve the competitiveness and efficiency of self-employed workers and retail merchants.

Twelve months

The State, through the competent body, in coordination with the decentralized autonomous governments, will implement the National System of Information and Registration of self-employed workers and retail merchants.

Ninety days

The President of the Republic will issue the regulations for the application of this law. (YO)