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
New Labor Rights under the Organic Law on Persons with Disabilities
The new Organic Law on Persons with Disabilities, published in July 2025, repeals the previous 2012 law and introduces significant changes in the labor sphere. It strengthens the inclusion of persons with disabilities in employment, more clearly defines the rights of substitutes and caregivers, and establishes new obligations for employers.
Nuevos derechos laborales bajo la Ley Orgánica de las Personas con Discapacidad
La nueva Ley Orgánica de las Personas con Discapacidad, publicada en julio de 2025, deroga la anterior ley de 2012 e introduce cambios importantes en el ámbito laboral. Refuerza la inclusión de personas con discapacidad en el empleo, define con mayor claridad los derechos de los sustitutos y cuidadores, y establece nuevas obligaciones para los empleadores.
S.A.S. and Sports Joint Stock Companies: New rules under the Organic Law of National Solidarity
The Organic Law of National Solidarity reinforce the restrictions applicable to Simplified Joint Stock Companies (S.A.S.) by expanding the list of prohibited activities — including mining and strategic sectors — to ensure that these entities remain focused on ventures with lower regulatory risk. Additionally, it introduces the Sports Joint Stock Company, a new legal form designed to professionalize the management of sports clubs and teams, subject to strict controls to prevent illicit activities.
S.A.S. y Sociedades Anónimas Deportivas: Nuevas reglas bajo la Ley Orgánica de Solidaridad Nacional
La Ley Orgánica de Solidaridad Nacional refuerza las restricciones para las Sociedades por Acciones Simplificadas (S.A.S.), ampliando la lista de actividades prohibidas, como la minería y sectores estratégicos, para mantenerlas enfocadas en emprendimientos de menor riesgo regulatorio. Además, introduce la Sociedad Anónima Deportiva, una nueva figura jurídica para profesionalizar la gestión de clubes y equipos deportivos, con controles estrictos para evitar actividades ilícitas.
Ecuador and the Netherlands Strengthen customs control and Intellectual Property protection
The new Agreement on Mutual Administrative Assistance in Customs Matters between Ecuador and the Kingdom of the Netherlands, published in the Second Supplement of the Official Register No. 63 (June 19, 2025), strengthens efforts to combat smuggling, counterfeiting, and commercial fraud. Through information exchange and coordinated surveillance mechanisms, it also reinforces the protection of intellectual property rights, benefiting authorities, operators, and rights holders.