Quevedo & Ponce - Noticias Legales
No severance compensation for public servants in cases of voluntary retirement to benefit from retirement: New binding jurisprudential precedent for Ecuador
- February 6th, 2025
- Quevedo & Ponce
The Resolution No. 03-2025 of the National Court of Justice of Ecuador, issued on January 29, 2025, establishes the impropriety of severance compensation in cases of voluntary retirement for the public sector.
According to the ruling, “a worker who has decided to terminate their employment relationship through voluntary retirement to benefit from retirement cannot receive the severance compensation provided for in the second paragraph of Article 184 of the Labor Code,” arguing that they would be benefiting twice from the termination of the employment relationship.
What is severance?
This legal concept arises when the worker notifies the employer in writing of their intention to terminate the employment relationship. The law also considers severance when both the worker and the employer mutually agree to the termination in writing.
How is severance compensation calculated?
When a worker terminates their employment through severance, the employer must pay them a bonus equal to 25% of their last monthly salary for each year worked. The employer has 15 days to pay this bonus and other rights owed to the worker.
At Quevedo & Ponce, we advise public servants to ensure compliance with legal provisions and protect their labor rights. Contact us for guidance on this important precedent and its impact on the labor field.
Más Artículos
Transformación Societaria y Sociedades Anónimas Deportivas: Efectos de la sentencia constitucional que dejó sin vigencia la Ley Orgánica de Solidaridad Nacional
La Corte Constitucional del Ecuador declaró la inconstitucionalidad total de la Ley Orgánica de Solidaridad Nacional, al determinar que fue aprobada vulnerando el principio de unidad de materia y el procedimiento legislativo ordinario. Esta decisión deja sin efecto las obligaciones impuestas a las Sociedades por Acciones Simplificadas (S.A.S.) y a las Sociedades Anónimas Deportivas (S.A.D.), restableciendo el marco normativo previo y reafirmando la supremacía del control constitucional y la necesidad de mantener la coherencia normativa en el sistema jurídico ecuatoriano.
Mediation: An effective and legal way to resolve conflicts in Ecuador
Mediation is a conflict resolution process whereby the parties, assisted by a neutral third party called a mediator, seek to reach a voluntary agreement on a negotiable matter, in an extrajudicial and definitive manner. This mechanism promotes fast, confidential, and fair solutions that have the same legal validity as a final judgment, fostering dialogue and a culture of peace in Ecuador.
Mediación: una vía eficaz y legal para resolver conflictos en Ecuador
La mediación es un método alternativo de solución de conflictos mediante el cual las partes, asistidas por un tercero neutral llamado mediador, procuran un acuerdo voluntario sobre materia transigible, de carácter extrajudicial y definitivo. Este procedimiento permite alcanzar soluciones ágiles, confidenciales y con el mismo valor jurídico que una sentencia ejecutoriada, fomentando el diálogo y la cultura de paz en Ecuador.
New Rules for Communal and Savings Funds: A Framework of Control and Transparency
The Superintendence of Popular and Solidarity Economy (SEPS) has established new rules for the incorporation, governance, and liquidation of communal and savings funds, effective as of November 20, 2025. This regulatory framework strengthens the transparency, monitoring, and financial security, ensuring that these community-based entities can manage resources, grant loans, and contribute to the development of the popular and solidarity economy.
Nuevas Reglas para Cajas Comunales y de Ahorro: Un Marco de Control y Transparencia
La Superintendencia de Economía Popular y Solidaria (SEPS) ha establecido nuevas reglas para la constitución, gobierno y liquidación de cajas comunales y de ahorro, vigentes a partir del 20 de noviembre de 2025. Este marco normativo fortalece la transparencia, la supervisión y la seguridad financiera, asegurando que estas entidades comunitarias puedan gestionar recursos, otorgar créditos y contribuir al desarrollo de la economía popular y solidaria.
