Quevedo & Ponce - Noticias Legales
The special emergent contract was declared unconstitutional by the Constitutional Court
- March 11th, 2025
- Quevedo & Ponce
The Constitutional Court analyzed the constitutionality of article 19 of the Organic Law of Humanitarian Support, related to the emerging special contract; and, by ruling 49-20-IN/25, determined that it violates the principle of intangibility of labor rights by allowing the employer to unilaterally terminate the contract without compensation. For this reason, it declared said provision partially unconstitutional, nullifying the possibility of finalyzing the contract before the deadline without payment of compensation.
Despite this ruling, the emergent contract remains in effect with the following characteristics:
- It can be signed for a maximum of one year, renewable once.
- It is not exclusively linked to the pandemic but can be applied to any temporary situation that justifies the need to ensure business sustainability.
- If the employer terminates the contract unilaterally before its term, compensation for unfair dismissal will be required.
- The contract becomes indefinite if the employment relationship continues after the term ends.
The Court also reminded the National Assembly to evaluate the Humanitarian Support Law and modify it if necessary, to ensure it meets its objectives. Additionally, it emphasized that the Ministry of Labor must oversee the proper use of the emergent contract to prevent violation.
At Quevedo & Ponce, we are experts in labor and constitutional law, providing effective consultancy on matters such as emergent contracts. Contact us to protect your rights and ensure successful legal solutions.
Más Artículos
Avoid Fines which rank from 2 to 20 Basic Salaries! – Gender Equality Plan for Companies in Ecuador
The Equality Plan must be registered before July 31, 2025, with the Ministry of Labor, or fines ranging from 2 to 20 basic salaries will be imposed on companies and public institutions that fail to comply with the law. This Plan ensures equal treatment and opportunities between women and men in the workplace, promoting inclusion and aiming to eliminate discrimination.
“Bimbo” Brand Rejected in Switzerland: The Importance of Cultural Perceptions in Trademark Registration
In the world of intellectual property, trademark protection involves not only legal aspects but also the social impact of the terms used. A recent case in Switzerland highlights how a trademark can be rejected if its name has immoral or insensitive connotations towards specific social groups.
Administrative Tribunal of Quito Protects the Rights of a Designation Of Origin Registered in the European Union and WIPO
Quevedo & Ponce successfully acted on behalf of the Consorzio Produttori e Tutela della DOP FONTINA in response to a lawsuit filed by an Ecuadorian company, which primarily argued that FONTINA was not registered in Ecuador. However, the Administrative Litigation Tribunal located in the Metropolitan District of Quito upheld the challenged administrative act, citing the risk of consumer confusion and applying Decision 486 of the Andean Community, emphasizing the importance of protecting designations of origin, even without formal registration in Ecuador.
How to Protect Your Business from Litigation: Basic Legal Tips
Litigation can pose risks to your company’s resources and reputation. To prevent such risks, it is essential to adopt preventive measures, including drafting clear and comprehensive contracts, ensuring compliance with labor laws, safeguarding intellectual property, maintaining transparent accounting practices, engaging the services of a specialized attorney, and promoting internal conflict resolution. With appropriate legal counsel, you can protect your business and ensure its uninterrupted growth, free from legal disruptions.
No severance compensation for public servants in cases of voluntary retirement to benefit from retirement: New binding jurisprudential precedent for Ecuador
This resolution specifically applies to public servants who retire (cease their duties) to benefit from retirement, as provided in Article 47 of the Organic Law of the Public Service (LOSEP)
