The government initiated reforms to the Labour Code

Ecuador would reform its Labour Code

With the development of the project that was sent to the National Assembly for approval, the President initiated the development of the Code of Industrial Relations, to replace the current Labour Code.

Why propose a new code? “Since the current is anachronistic,” was the response of the Ecuadorian President, who explained that, among other proposals, the thirteenth and fourteenth salary will be divided for 12 (one year) and is payable in proportion to workers if they wish to. The thirteenth is a full compensation paid to workers in December. While the fourteenth corresponds to a full basic salary (now at $ 318).

It will also be proposed a reform to form labor organizations by economic branch, which are those within the 22 sectoral committees. Currently, unions are formed in each company with the signatures of 30 workers.

The regulations currently governing are from 1938 has undergone some changes in the last 75 years of its life.