The Labor Code of Ecuador, in its articles 185 and 188, provides for the payment of bonuses for eviction (resignation) and compensation for early termination.

According to the same legislative body, eviction occurs when the worker wishes to terminate the employment relationship. Termination of activity can be done immediately or after notifying the employer for at least fifteen days.

In these cases, the employer has fifteen days to, in addition to the payment, prepare and register a settlement certificate in the system of the Ministry of Labor.

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The eviction bonus is calculated by multiplying 25% of the last received compensation by the number of years of service. This does not include parts of the year.

In cases of unilateral termination of the employment contract, except in cases where the employer accepts consent, compensation for damages is given along with eviction.

Compensation for early termination is calculated as follows: employees who have worked for up to three years are terminated from their three-month compensation; Those who were dismissed after three years of service are paid a base of three months and an additional year of benefits.

“Employers have 30 days to get workers to sign the settlement,” explains Barbara Terán, a professor at the Faculty of Law at the University of San Francisco de Quito.

However, it is possible for the parties (employee and employer) to agree on the terms of payment of the amount. What the employer cannot do is not pay the calculation or reduce its amount.

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“If the employer does not have the money to pay, he can agree with the worker to pay in installments or give him goods as payment. It is perfectly legal as long as it does not imply giving up inalienable rights,” says Terán. “For example: you can pay the outstanding tithes in installments, but you cannot not pay or reduce the amount due, because it is an inalienable right.”

On November 30, Daniela left her workplace due to eviction. She was not sure whether she should be paid until 15 or 30 days after the termination of employment, but she still received the money on January 8, 2024. She had to spend the Christmas and New Year holidays with almost no money.

His former employer claimed that the settlement document could not be entered on the Ministry of Labor website because the portal was down.

“Yes, they paid me well, but it took more than a month. I had to insist.” She even contacted someone from Human Resources at another company, who told her that she entered two severance payments into the system during the same period that Daniela’s former company said she couldn’t use the portal.