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Sunday, March 3, 2013

Hiring ecuadorians or Labor Law in Ecuador. March 2013.

From ExpatExchange Forum 
We lived in ecuador for two years and moved back to the US recently. While there we found an ecuadorian who we liked was going to lose his job at vistazul. So 5 of us expats got together and hired him as a caretaker for our houses. We much too late found out ecuadorian laws were against employers. We have since let him go after he completed his contract with us. It is costing us a lot of money in bonuses, vacations, holidays, school bonuses, all of which we paid him for along the way. Now he wants to sue us for extra severence pay. He only worked for us for one year. We are all retired and live on a tight budget but we just wanted to help this guy and his family out. Check carefully into Ecuadorian employment laws before hiring an Ecuadorian. I wish we had done so. Just an fyi
We not only paid him more than he was making before, but also paid his social security and whenever he asked for extra days off we gave him his full pay each week. We gave him off 5 days for Carnival for example so he could sell food on the playa. No good deed goes unpunished it seems.
We paid him well by Ecuadorian standards. Paid his social security, he worked 5 days from 9-12' then lunch from 12-2' then left at 4 pm. I would have liked a job like his when i was working in the states. So hire an ecuadorian but look into all the laws before you do and you might understand better.
I believe the intention of the new employment laws was good, as before, many employees were paid extremely low wages for long hours. However, the newer laws have made it extremely easy for workers to sue. And when they do, the often win. This is why I caution expats against hiring the part time cleaning lady, as they would have the ability to take legal action should they become angry with someone. Many Ecuadorians who used to have part-time help in the house, now do not for this reason. If you have a part time cleaning lady for a couple years and she decides to sue you, you can in some cases, be sued for back wages (full time) IESS (social security) payments, decimo tercera (the extra month's pay in December), etc. If it comes down to a he said/she said situation, in these situations, there is a high probability that the Ecuadorian will come out on top.
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