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- Overview
Employment Termination in Ecuador
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.
There is no notice stipulated notice period and employers are only required to adhere to whatever agreement spelled out in the employment contract.
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.
A probationary period can be defined upon hiring an employee, up to a maximum of 90 days.