All investment enters the contract of entrepreneurship

Ecuadornews:

This new figure was born in the National Labor and Salary Council (CNTS). The proposed reform of the labor code will pass to the Assembly for approval.

The employment contract for entrepreneurship has divided the specialists. That proposal was approved on May 15 by the National Labor and Salaries Council (CNTS), which brings together the Government, employers and workers.

It is a special contract for undertakings and new investments, regardless of their size, which consists of increasing the “testing stage” of the workers from three months to a maximum of three years. The first concern, according to the lawyer Francisco Jiménez, is because there are no economic limits in the figure of entrepreneurship or new investments.

“In the end you are thinking more about the economic returns than to guarantee the stability of the worker.” He explained that large capital businesses should be more controlled and “could not be called ventures. That figure is for small and medium businesses.

” That trial period will vary according to the term that employers put in order for their businesses to run. To access this contract, the interested parties will deliver their business plans to the Ministry of Labor for approval.

The document should establish the time (of maximum three years) that a business will take to generate profitability. It will also detail the number of employees required by the enterprise.

The exact format and features of the plan have not yet been defined in the proposal. If the company fails before the period approved by the State portfolio, the employees can be dismissed with all the benefits of the law, without this becoming an untimely dismissal.

The employer is responsible for taking the items by eviction. Article 184 of the Labor Code establishes that the eviction is the notice with which one of the parties informs the other of its willingness to terminate the contract. It also indicates that the employer will reward the worker with 25% of the equivalent to the last monthly remuneration for each of the years of service rendered.

“This initiative promotes solidarity among all the links; The rights of the workers will always be respected, “said Patricio Alarcón, president of the Ecuadorian Business Committee. Entrepreneurs consulted said that this contract will prevent greater losses from being recorded, in the case of failure in an initiative.

“If so, the items that would generate the dismissal by eviction are less than the compensation for untimely dismissal,” said one of them, who preferred not to be cited. If the venture is successful, the worker will sign an indefinite contract. Wilson Araque, director of the Observatory of Small and Medium Enterprises, said that this change will boost investment because citizens will have more options to undertake.

Labor lawyers are in disagreement to sign an indefinite contract after profitability is generated. Javier Barba is one of them. He said that figure will generate instability. According to the current code, once the test stage (90 days) is passed, an indefinite contract is signed.

But with the figure of entrepreneurship, says Barba, the spectrum of the test increases (to three years) until the business generates profit. “This would affect the employee because he would perform his duties without guarantees of stability,” he acknowledged.

Although Rodrigo Gómez de la Torre, of the Chamber of Agriculture and member of the CNTS for the employers, considers that the test time does not increase, rather it guarantees that the worker does not lose his rights. “One way to discourage investment is putting labor demands on an employer, who risks, gets into debt and in many cases fails,” he said.  (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/inversion-contrato-emprendimiento