Labor & Employment Law Advisory

Solutions for Employers and Employees

At Tempo Legal, we offer tailored legal solutions in Labor Law designed for both employers and employees. Our goal is to ensure regulatory compliance, protect labor rights, and effectively resolve disputes while adapting to each client's specific needs.

With extensive experience across various sectors—from large corporations to startups and SMEs—our team combines technical expertise, innovative strategies, and a practical approach to achieve effective results.

For Employers

We provide strategic advisory in HR management, contract drafting, and internal policy design, helping you comply with current labor regulations while optimizing your operations. Our services include labor audits, workforce restructuring strategies, and representation in legal disputes.

For Employees

We protect your rights in cases of wrongful termination, workplace harassment, unpaid severance, and other legal disputes. We represent you before the Ministry of Labor and other legal authorities to ensure you achieve a fair resolution.

 

Juan Alberto Gómez, Attorney at LawAb. Juan Alberto Gómez

Looking for reliable, hassle-free legal advice at a fair price? At Tempo Legal, we help you incorporate your business, register your trademark, or resolve any legal and accounting matters. Your first consultation via WhatsApp is FREE! Get clear, fast solutions.

Professional Experience:

Partner at Gómez & De La Torre Law Firm, Legal Director at Rainforest Foundation, and External Consultant at Benalcázar Abogados.

Specialization & Achievements:

Expert in Civil and Commercial Procedural Law, with over $10 million in assets recovered through strategic litigation and successful settlements.

Advisor to Industry Leaders:

Has represented and advised Banco Pichincha, Banco del Austro, Oriente Seguros, Chaide & Chaide, Colegio Alemán Quito, and Grupo Logístico Mosquera Aulestia GMA, among others.

Our Featured Services

For Employers

Employment Contracts
  • Drafting and review of individual and collective agreements.
  • Creation of specialized contracts for remote work, confidentiality, and non-compete agreements.
  • Contract updates to ensure compliance with current labor regulations.
Strategic Workforce Management
  • Advisory on employee recruitment, selection, and termination processes.
  • Implementation of internal policies that promote diversity and productivity.
  • Strategic design for workforce restructuring and mass layoffs.
Regulatory Compliance
  • Labor audits to identify risks and prevent penalties.
  • Occupational health and safety advisory, ensuring compliance with legal standards.
  • Training for HR teams and executives on labor regulations.
Internal Regulations
  • Creation of tailored internal regulations aligned with labor laws.
  • Review and update of existing regulations to ensure effectiveness.
  • Training on the implementation of regulations to foster compliance.
Labor Dispute Resolution
  • Mediation and negotiation in internal disputes.
  • Representation in judicial and administrative proceedings before the Ministry of Labor (complaints).
  • Collective bargaining with labor unions or organized worker groups.
Remote Work and New Working Modalities
  • Creation of specific policies and contracts for remote work.
  • Advisory on regulatory compliance in digital environments.

For Employees

Wrongful Termination & Dismissal Defense
  • Legal representation in summary or wrongful dismissals.
  • Claims for severance pay and owed benefits.
Employee Benefits Claims
  • Management of outstanding payments for settlements, statutory bonuses, and profit-sharing.
  • Claims for unpaid overtime and unacknowledged benefits.
Workplace Harassment and Discrimination
  • Legal advice and representation in complaints regarding workplace harassment or mobbing.
  • Defensa en casos de discriminación laboral por género, edad u otras causas.
Workplace Accidents and Occupational Illnesses
  • Management of claims for workplace accidents and occupational illnesses.
  • Representation before IESS (Ecuadorian Social Security Institute) and other government entities to secure compensation.
Employment Contract Regularization
  • Formalization of informal or verbal employment relationships.
  • Identification and removal of unfair or unlawful clauses in employment contracts.

Our Experience & Track Record

At Tempo Legal, we specialize in delivering comprehensive legal solutions for both employers and employees, backed by a solid track record across diverse industries.

For major corporations, we have managed workforces of over 500 employees—ensuring labor law compliance, drafting effective internal policies, and leading organizational restructuring to optimize operations. We have also partnered with SMEs and startups, helping them establish efficient, sustainable employment structures that support growth from day one.

For employees, our priority is to defend their rights in cases of wrongful termination, workplace harassment, unpaid severance, and benefit claims. We have represented employees to achieve fair outcomes and ensure their voices are heard.

Whether you are a business seeking legal stability and operational efficiency or an employee defending your rights, our tailored, strategic approach is designed to deliver effective results in any scenario.

Clients & Sectors We Have Advised

We have advised organizations across various sectors, including:

Healthcare · Education · Technology · Services · Corporate Groups · Foreign Companies

FAQ

General Overview of Labor Law

What Does Ecuador's Labor Code Regulate?

The Labor Code is the legal framework governing employment relationships in the country. It establishes rights and obligations for both employers and employees, covering aspects such as hiring, salary payment, working hours, statutory benefits, severance pay, contract termination, and labor dispute resolution procedures. This legal instrument aims to guarantee fair working conditions and protect the rights of both parties.

What Are Non-Waivable Employee Rights?

Non-waivable rights are those established by law that cannot be waived or modified through agreements between employer and employee. These include the right to a fair wage, IESS social security affiliation, 13th and 14th-month bonuses, paid annual leave, profit sharing, job security during pregnancy and lactation, and dismissal compensation. Even if an employee signs an agreement waiving any of these rights, such agreement is legally null and void.

What Is "Visto Bueno" (Unilateral Contract Termination) and When Does It Apply?

"Visto Bueno" is an administrative legal procedure that allows an employer or employee to terminate an employment contract for justified cause. Valid grounds include breach of duties, serious misconduct, harassment, or breach of trust. This process must be requested before the Labor Inspectorate (Inspectoría del Trabajo), which evaluates the evidence submitted and issues a resolution approving or denying the request.

Benefits and Compensation

How Is Employee Profit Sharing Calculated?
  • 15% of the company's net annual profits are distributed as follows:

    • 10% allocated among all employees, proportional to the time worked.
    • 5% allocated among employees with family responsibilities, based on the number of dependents.
How Are the 13th and 14th-Month Bonuses Calculated?
  • 13th-month bonus: Equivalent to one-twelfth (1/12) of the total compensation received during the year, payable by December 24.
  • 14th-month bonus: Equivalent to one Unified Basic Salary (SBU), paid in August or April depending on the region (Coast/Highlands).
What Rights Do Female Employees Have During Maternity Leave?
  • Female employees are entitled to:
    • 12 weeks of paid leave.
    • Job protection during pregnancy and up to one year following childbirth.
    • Daily two-hour lactation breaks until the child reaches nine months of age.
What Is Included in a Final Settlement Upon Employment Termination?

The final settlement must include:

  • Unpaid or pending salaries.
  • Prorated unpaid 13th and 14th-month bonuses.
  • Accrued and unused paid leave.
  • Profit-sharing distribution (if applicable).
  • Statutory compensation or severance, depending on the cause of termination.

Dismissals & Dispute Resolution

What Should I Do If I Was Dismissed Without Receiving My Final Severance Settlement?

You can submit a formal claim to your employer and, if no response is received, file a complaint with the Ministry of Labor. This authority will seek resolution through mediation or, if necessary, refer the case to the judicial courts.

What Is Unlawful Dismissal ("Despido Intempestivo") and How Is Severance Calculated?

Unlawful dismissal ("despido intempestivo") is the unilateral termination of an employment relationship without statutory cause. Severance compensation is calculated based on length of service—typically equivalent to one month's salary for each year of service—subject to legal limits.

What Is Labor Mediation and When Is It Used?

Mediation is a mechanism to resolve employment disputes quickly and amicably through the intervention of a mediator from the Ministry of Labor. It is utilized for disputes regarding severance settlements, unpaid statutory benefits, or disagreements upon contract termination.

What Evidence Is Needed to Report Workplace Harassment?

Evidence may include emails, text messages, audio/video recordings, witness statements, and any proof demonstrating harassment. It is essential to gather all available documentation before filing a formal complaint.

Regulatory Compliance and Audits

What Should I Do If I Was Dismissed Without Receiving My Final Severance Settlement?

You can submit a formal claim to your employer and, if no response is received, file a complaint with the Ministry of Labor. This authority will seek resolution through mediation or, if necessary, refer the case to the judicial courts.

What Are the Most Common Penalties for Labor Non-Compliance?

Penalties include fines for:

  • Failure to register employment contracts.
  • Failure to enroll employees in IESS (Ecuadorian Social Security Institute).
  • Non-compliance with working hours and mandatory rest periods.
  • Non-payment of statutory benefits.
What Are Internal Work Regulations and When Are They Required?

It is a mandatory document for companies with more than 10 employees. It establishes rules regarding working hours, leave permits, workplace conduct, equipment usage, and disciplinary procedures. It must be officially approved by the Ministry of Labor.

Hiring & Employment Contract Types

What Are the Most Common Types of Employment Contracts in Ecuador?

Based on current Ecuadorian labor legislation through 2025 and recent regulatory updates, the following employment modalities are standard and fully align with the Labor Code. Below is a detailed overview of each contract type:

What Are the Most Common Types of Employment Contracts in Ecuador?

In Ecuador, the most common types of employment contracts are as follows:

  1. Indefinite-Term Contract (Permanent Employment):
  • Without a pre-established termination date.
  • Fixed-Term Contract:
  1. It is the most widely used contract type for permanent employment relationships.
  • Has a specific duration, generally not exceeding two years.
  • It may be renewed only once, after which it converts into an indefinite-term contract.
  1. Casual Employment Contract
  • Designed for casual or occasional activities outside the core business operations.
  • Its duration cannot exceed 180 days within a one-year period.
  1. Project-Based / Task-Based Contract:
  • Terminates once the specific project or task for which the employee was hired is completed.
  • Common in industries such as construction and temporary projects.
  1. Productive Sector Contract
  • Used in agricultural, manufacturing, or industrial activities tied to specific production processes.
  • Includes terms and statutory benefits tailored to the specific nature of the business operations.
  1. Part-Time Employment Contract:
  • Designed for work schedules not exceeding 30 hours per week.
  • Salary and statutory benefits are calculated proportionally to the hours worked.
What Is the Emergency Employment Contract ("Contrato Emergente") in Ecuador?

The emergency contract ("contrato emergente") was introduced in Ecuador as a special legal framework under recent labor reforms, designed to promote economic recovery and facilitate hiring in sectors impacted by extraordinary circumstances, such as economic crises or public health emergencies.

Key Features of the Emergency Contract:

  1. Duration:
  • Temporary duration of up to one year, renewable only once.
  • If renewed a second time, it automatically converts into an indefinite-term (permanent) contract.
  1. Work Schedule Flexibility:
  • Allows for a flexible distribution of working hours to adapt to the operational needs of the employer.
What Key Elements Must an Employment Contract Include?

It must include:

  • Identification of the parties.
  • Job description and key responsibilities.
  • Contract duration (if applicable).
  • Working hours and schedule.
  • Salary, compensation, and additional benefits.
  • Workplace location.
  • Additional provisions, such as confidentiality or non-compete clauses, where applicable.
Is It Mandatory to Register Employment Contracts?

Yes, all employment contracts must be registered through the Ministry of Labor's official platform. This registration ensures regulatory compliance and safeguards employee rights.

What Is a Remote Work Contract (Telework) and How Does It Work?

A telework (remote work) contract allows employees to perform their duties outside the employer's physical premises, typically from home. This contract must specify:

  • The required technological tools and equipment.
  • Employee and employer duties and responsibilities.
  • Working hours and availability schedule.
  • Equipment usage policies and confidentiality obligations.

Other Frequently Asked Questions

What Obligations Does an Employer Have When Liquidating a Company?

The employer must notify employees, process all statutory severance payouts, and fulfill all labor obligations before ceasing operations.

What Are Considered Family Dependents in Profit-Sharing Calculations?

Family dependents include minor children, a legal spouse, and parents who are financially dependent on the employee.

How Are Night Shifts, Overtime, and Supplementary Hours Regulated in Ecuador?

In Ecuador, labor regulations establish the following regarding night shifts, overtime, and supplementary hours:

1. Night Shift:

• Performed between 19:00 and 06:00.
• Wages are paid with a 25% surcharge over the regular hourly rate.
2. Supplementary Hours:
• Refers to hours worked between 05:00 and 19:00 exceeding the standard work schedule (8 daily hours or 40 weekly hours).
• Paid with a 25% surcharge over the regular hourly rate.
3. Overtime Hours:
• Hours worked outside the regular schedule, performed at night (19:00 to 06:00).
• These hours carry a 50% surcharge over the regular hourly rate.
4. Legal Limits:
• Employees may not work more than 4 overtime hours per day or 12 hours per week.
• Supplementary and overtime hours must be mutually agreed upon by employer and employee and properly recorded.
5. Timekeeping and Payment:
• Employers are required to maintain time records of hours worked and pay the corresponding surcharges in payroll slips.

If these conditions are not met or proper payment is withheld, the employee may file a complaint with the Ministry of Labor or initiate judicial proceedings.

What Should Be Done If an Employer Fails to Provide IESS Social Security Affiliation?

The employee may submit a formal complaint to IESS or the Ministry of Labor, demanding retroactive enrollment and payment of outstanding contributions.

How Are Unpaid Leaves of Absence Managed?

The employee may request unpaid leave, and the employer retains discretion to approve or deny it. Such leave does not affect the continuity of the employment relationship.

What Protection Against Dismissal Do Pregnant Women and Caregivers of Individuals with Disabilities Have in Ecuador?

In Ecuador, individuals caring for family members with disabilities and pregnant women enjoy special protection against dismissal, governed by the Labor Code and complementary legislation:

  1. Pregnant Women:
  • They cannot be dismissed during pregnancy or up to one year following childbirth, except in cases of termination for just cause duly proven before a labor authority.
  • If an ineffective dismissal occurs, the employee may claim statutory compensation equal to 12 months of her last salary, in addition to all other labor entitlements.
  1. Individuals Caring for Family Members with Disabilities:
  • Employees responsible for a family member with a disability are likewise protected against ineffective dismissal.
  • In the event of unjust dismissal, the employee is entitled to special statutory severance and the right to seek reinstatement.
  1. Legal Actions:
  • In cases of ineffective dismissal, the employee may file a complaint with the Ministry of Labor or initiate legal proceedings to demand full redress of their rights.

These measures aim to guarantee job security and safeguard the rights of individuals in vulnerable situations.

Why Choose Tempo Legal?

We differentiate ourselves through our responsiveness, agility, and business-focused vision.

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Direct Consultation with Specialists:

Your case will be managed from day one by a senior legal counsel, ensuring complete legal accuracy and strategic clarity.

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Proven Track Record in Ecuador:

Over 250 organizations advised and 120 data protection projects endorse our technical expertise.

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Comprehensive Legal and Accounting Approach:

We integrate corporate and labor decision-making with tax compliance to deliver a 360° business management strategy.

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Global Mobility and Soft Landing:

We facilitate legal representation and tax domicile services for foreign investors and international companies.

Your inquiry will be reviewed by an attorney from the Tempo Legal team.

Whether your company requires legal, corporate, labor, accounting, or data protection guidance, we can help you determine the optimal roadmap to operate with regulatory compliance and legal certainty in Ecuador.

Complimentary Legal Assessment

Receive an initial evaluation of your current legal standing.