Labor reform in Ecuador will have 5 critical points

The Assembly has until March 24 of this month to approve or reject the draft Labor Reform Ecuador, which presents five critical points.

 Maternity

 The workers, concluded the license or maternity or paternity leave, is entitled to an optional and voluntary unpaid leave until completing the 12 months to understand the care of children or daughters of the couple. That is, the license for the mother can be extended from three to 12 months and the father of 15 days to one year.

 Workday

 By agreement between the employer and the worker, the working day may be reduced from 40 to 30 hours per week. To do so, the company must meet seven requirements, including optimizing their expenses and lower wages at 25% of its managers. Companies must demonstrate losses prior to application and low of 30% of their income the previous year quarter. The reduction in working hours shall not exceed six months, renewable once for another fiscal year.

 Youth Labor

 The youth labor contract is the agreement by which at a person between 18 and 26 years of age is linked. The minimum number or percentage of workers aged between 18 and 26 years in business will be regulated by the Ministry of Labour. The employer’s contribution to IESS will be covered by the central government to two basic worker salaries for one year. If the worker’s remuneration is greater than two basic wages, the difference will pay the employer contribution. The remuneration paid to young workers be considered a deductible expense on income tax when the employer contribution covers the entire state.

Internships

The labor reform bill determines that the duration of the internship will be regulated by the regulatory body of the higher education system. This can not continue for more than six months without creating dependency ratio.

Unemployment

 The project creates the Unemployment Insurance, the financial benefit for members of the IESS who lose their jobs. To access this benefit, one must have over 24 accumulated contributions and must be unemployed for more than 60 days. The unemployment insurance fund will be financed by the 2% of worker’s compensation and 1% employer. The insurance will last up to five months.

Original source in Spanish: http://www.elcomercio.com/actualidad/puntos-criticos-contiene-reforma-laboral.html