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Employment Termination in Ecuador

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Termination process

Employee contracts can be terminated if a reasonable just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses. That aside, notice should be provided in advance – provided both parties agree to it.

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Notice period

There is no notice stipulated notice period and employers are only required to adhere to whatever agreement spelled out in the employment contract.

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Severance pay

Without the appropriate termination notice, employees are entitled to receive a severance package equivalent to one month’s salary multiplied by the number of years the worker has stayed with the employer, up to 25 years.

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Probation periods

A probationary period can be defined upon hiring an employee, up to a maximum of 90 days.