activity 5.2- employment rights in your country

7/27/2019 Activity 5.2- Employment Rights in Your Country

1/3

Activity 5.2: Employment rights in yourcountry

1-.Chinese government introduced such a wide-ranging lawcovering all aspects of employer-employee relationshipbecause they want to have higher employment in thecountry, so that the government look good and also tohelp people that are the most discriminated to get a job.

2.-I think this may damage business interests because theymight not want to hire someone with a disability becausemaybe they prefer to have someone normal. Also it mightdiminish a business interest maybe the holiday that thegovernment says a employee must have are too muchand the company will not like this because they will bepaying a worker and not having the amount of effort they

want on a worker.3.-Ecuadorian legislation requires that foreign companieswho wish to start activities in Ecuador be legallyconstituted in the country.Labour agreements in Ecuador must be subject toEcuadorian law.labour contracts must undergo an online approval processwith the Ministry of Labour Relations through its webpage.The Ecuadorian Constitution establishes, as a importantprinciple in Labour Law, that in case of doubt on the

contract provisions, it would be resolved in the mostfavourable way to the worker.The employers obligations according to the EcuadorianLabour Code, Ecuadorian Social Security Law, among

others, include: Paying the corresponding salary;


2/3

Granting the minimum benefits stated by theLabour Code;

Retaining the corresponding tax and socialsecurity contribution from the employeessalary;

Financing a private retirement plan in additionto the public retirement pension, when theemployee has worked for the same employerfor 25 years;

Providing the hired personnel with the requiredwork tools and security equipment (ifapplicable) to render services;

Registering as employer before the EcuadorianSocial Security Institute (IESS);

Affiliating employees to the IESS; and Retaining and paying social security

contributions.All social benefits paid by the employer are tax deductible.

Two weekly days offAs a general rule, for every consecutive five days ofwork, employees are entitled to enjoy two paid daysoff.HolidaysThe Labour Code states that the following days aremandatory holidays:1 January, Good Friday, 1 May, 24 May, 10 August, 9

October, 2 November, 3 November and 25 December.Annual vacationThe employee is entitled to enjoy 15 paid days of vacationper every year worked. After the first five years worked inthe company, employees are entitled to enjoy one extraday per year worked with a maximum of 15 extra days.Only these extra days can be denied by the employer,paying the correspondent compensation.Christmas bonusTo be paid until 24 December and equivalent to a twelfth


3/3

of all wages earned in the year, not including socialbenefits or bonuses described in this section.School bonusTo be paid until 15 April (Coast Region and GalapagosIslands) or 15 August (Highlands and Amazon Regions),equivalent to one minimun legal salary, which is changedevery year. The minimum legal salary was set in US$292,00 for 2012.Profit sharingThe Labour Code states that employees are entitled toparticipate in the 15 per cent of the employers profits.This benefit must be paid until 15 April, every year.Reserve fund

According to the Labour Code, employers are required todeposit in an account, a monthly salary per year worked,from the second year of work for each employee. The totalfund would be available to the employee upon retirement.However, a recent governmental decision established thatthe employer must pay that extra monthly salary on a prorata basis in the employees normal monthly salary.

Minimum wage compensation.If a company has profits, itmust assure every employee to receive the amount ofUS$350.70 per month.

http://latinlawyer.com/reference/topics/62/jurisdictions/32/ecuador/

activity 5.2- employment rights in your country

Documents