The Ministry of Labor has issued the guidelines to regulate the contract for specific works or services within the ordinary course of business, and define the activities to which this contract applies.[1] The main provisions are:
Scope of Application
- Staff can be hired to perform specific works and/or services:
- as part of the typical, habitual or non-habitual work of the employer´s productive process.
- As part of projects by the Ecuadorian State, or for contractors o subcontractors of such projects.
- For service programs and projects for priority, vulnerable or at-risk groups, or that require special protection services in situations affecting rights in the areas of child development, care services for seniors, care services for disabled persons or special protection services provided by the Ministry of Social and Economic Inclusion through its collaborators.
Terms of the Contract
- The contract will be executed in writing and must include the following as a minimum: (i) type of work under the contract; (ii) how it will be performed; (iii) remuneration and method of payment; (iv) duration of the contract; (v) location where the work will be performed; and (vi) a statement as to whether any penalties are established and the manner of determining these.
- A probationary period can only be set on the first occasion the worker is hired.
- The contract must state the email address and means of contacting the worker, which the employer may use for subsequent call ups. The worker will report any change to this information; but if the worker fails to do so, there will no longer be an obligation to hire him/her for new works.
Remuneration
- Remuneration cannot be less than the minimum basic salary or sectoral salary.
- Remuneration can be paid daily, weekly, every two weeks or monthly.
- Social security contributions and other statutory benefits will be paid based on hours worked and the pay agreed with the worker.
Duration and Termination of the Contract
- The duration will be for however long the given service is provided for, the work or project is performed, or the duration of ancillary services between the user and service supplier.
- Upon termination of the contract, the employee is terminated and paid the severance bonus owed due to the termination. The compensation for dismissal does not apply.
- The grounds for the labor inspector´s approval for dismissal and the grounds for termination established in the Work Code will apply to this type of contract.
New Works or Services
- In subsequent call ups, the parties may agree new terms according to the nature of the new work, activity or service.
- If new call ups are necessary, the employer´s obligation will expire six months after the end of the last project.
- For the performance of new works or services, and while the obligation to call up former employees is in effect, the employer must hire the same workers who provided their services, up to the number of job positions required for the new work or service, and according to the requirements for the activity and level of specialization.
- Once the call up is received, the worker must go to the workplace within seven days. If the worker does not show up, after the seven days the employer is free to call other workers and will not be obliged to call the former worker on future occasions.
- If there are available job positions which fit the worker´s profile, and this worker is not called up, this will constitute unfair dismissal.
- There will be no obligation to call the workers when:
- The previous work relationship ended for reasons other than the conclusion of the work or activity for which the worker was hired.
- The worker does not fit the profile required to perform the new work or service.
- The period in which to call up the worker has expired.
[1] Ministerial Decree No. MDT-2020-136, see at: http://www.trabajo.gob.ec/acuerdos-ministeriales/
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