Ecuador's labor laws provide a comprehensive framework for employee leave entitlements, ensuring that workers have adequate time off for rest, personal matters, and family responsibilities. These policies are designed to protect employee welfare and promote a healthy work-life balance, covering everything from annual vacations to specific provisions for parental and sick leave. Understanding these regulations is crucial for employers operating in Ecuador to ensure compliance and foster a supportive work environment.
The country's Labor Code outlines the minimum requirements for various types of leave, which employers must adhere to. While these statutory provisions set the baseline, some companies may offer additional benefits through internal policies or collective bargaining agreements, further enhancing employee well-being.
Annual Vacation Leave
In Ecuador, employees are entitled to paid annual leave after completing one year of continuous service with the same employer. This leave is an inalienable right and generally cannot be compensated in lieu of time off.
- Minimum Entitlement: Employees are entitled to 15 days of paid annual leave after one year of service. This typically includes weekends, meaning approximately 11 working days.
- Increased Entitlement for Seniority: After five years of continuous employment with the same employer, employees are entitled to an additional day of leave for each subsequent year of service. This additional leave can accumulate up to a maximum of 30 days.
- Payment: Annual leave is paid in advance, based on the employee's average salary.
- Accumulation: Employees can choose to accumulate their vacation leave for up to three consecutive years, taking it in the fourth year. In cases of technical work or positions of trust where replacement is difficult, an employer may deny vacation in one year to accumulate it for the following year.
- Termination: If an employee's contract is terminated and they have not utilized their accrued vacation, they are entitled to compensation for the unused leave, proportional to their time of service.
Public Holidays and Observances
Ecuador observes several national public holidays throughout the year, which are typically paid days off for employees. If a public holiday falls on a weekend, it is generally observed on the preceding or following weekday. If an employee is required to work on a public holiday, they are usually compensated at a higher rate, often double pay.
Here is a list of public holidays in Ecuador for 2025:
| Date | Day | Holiday Name | Type |
|---|---|---|---|
| January 1 | Wednesday | New Year's Day | National Holiday |
| March 3 | Monday | Carnival | National Holiday |
| March 4 | Tuesday | Carnival | National Holiday |
| April 18 | Friday | Good Friday | National Holiday |
| May 1 | Thursday | Labor Day / May Day | National Holiday |
| May 2 | Friday | Day off for Labor Day / May Day | National Holiday |
| May 23 | Friday | Day off for Battle of Pichincha | National Holiday |
| May 24 | Saturday | The Battle of Pichincha | National Holiday |
| August 10 | Sunday | Independence Day | National Holiday |
| August 11 | Monday | Day off for Independence Day | National Holiday |
| October 9 | Thursday | Independence of Guayaquil | National Holiday |
| October 10 | Friday | Day off for Independence of Guayaquil | National Holiday |
| November 2 | Sunday | All Souls' Day | Observance |
| November 3 | Monday | Independence of Cuenca | National Holiday |
| November 4 | Tuesday | Day off for All Souls' Day | National Holiday |
| December 25 | Thursday | Christmas Day | National Holiday |
Note: Some local holidays, such as Foundation of Quito (December 6), are observed regionally and may not apply nationwide.
Sick Leave Policies and Pay
Employees in Ecuador are entitled to sick leave in cases of illness or injury, provided they meet certain contribution requirements to the Ecuadorian Social Security Institute (IESS).
- Eligibility: Employees must have 180 days of continuous contribution to IESS within six months prior to the onset of illness, or 189 days within eight months before the start of illness.
- Duration and Pay:
- Employees are entitled to sick leave for up to two months (60 days).
- For the first three days of sick leave, the employer pays 50% of the employee's salary.
- From the fourth day onward, IESS covers the payment, typically at a rate of 75% of the average remuneration of the last three contributions for the first 70 days, and 66% for the remaining period, up to a maximum of six months.
- Medical Certificate: All sick absences require a professional medical certificate, which must be provided to the employer within 48 hours of the start date of the sick period.
- Additional Sick Leave: In cases of severe illness or surgery, additional sick leave may be granted with comprehensive medical documentation.
Parental Leave
Ecuadorian law provides comprehensive parental leave entitlements, including maternity, paternity, and adoption leave, to support new parents.
Maternity Leave
- Duration: Female employees are entitled to 12 weeks (84 days) of paid maternity leave. This period is typically distributed as two weeks before the estimated delivery date and ten weeks after childbirth.
- Pay: Maternity payments are shared between the Social Security system (IESS) and the employer. IESS covers 75% of the employee's average remuneration from the last three contributions, while the employer covers the remaining 25%.
- Multiple Births: An additional 10 days of leave are granted for multiple births.
- Child with Disability/Serious Illness: If the child is born with a disability or serious congenital disease, the mother may be entitled to an additional three months of leave. If the child is born with a disability, an additional 90 days may be granted.
- Reduced Working Hours: New mothers are entitled to work reduced hours (six hours instead of eight) for up to nine months after returning to work, to facilitate childcare.
- Protection Against Dismissal: Employers are prohibited from dismissing pregnant employees and those on maternity leave, except for specific reasons like liquidation or disability that prevents them from working.
Paternity Leave
- Duration: Fathers are entitled to 10 days of paid paternity leave for a natural birth.
- Increased Duration:
- 15 days for multiple births or births by C-section.
- 18 days if the baby is premature.
- 23-25 days if the baby is premature or has special needs, or is born with a degenerative, terminal, irreversible disease, or severe disability (75% or more).
- Pay: Paternity leave is generally paid in full by the employer.
- Mother's Death: In the unfortunate event of the mother's death during childbirth or while on maternity leave, the father is entitled to take over the remaining portion of the mother's maternity leave, up to 12 weeks.
Adoption Leave
- Duration: Adoptive parents are entitled to 15 days of paid leave from the date the child is legally delivered to them.
- Newborn Adoption: Employees who adopt newborn children are entitled to the same paid and unpaid leaves as biological parents.
Unpaid Parental Leave
- After the conclusion of paid maternity, paternity, or adoption leave, employees are entitled to an optional unpaid leave for up to nine additional months to care for their children during the first year of their life.
Other Types of Leave
Ecuadorian labor law also recognizes other specific types of leave to accommodate various employee needs.
- Bereavement Leave: Employees who suffer the loss of an immediate family member (spouse, common-law partner, relatives up to the second degree of consanguinity or affinity) are entitled to 3 days of paid bereavement leave.
- Childcare/Hospitalization Leave: Parents are entitled to 25 days of leave if their child is hospitalized or has a degenerative disease.
- Study Leave (Education Leave): Employees who have worked for more than five years with the same company and obtain a scholarship for studies abroad in fields related to their work activity may be granted a leave of absence for up to one year, with six months being remunerated. This typically applies to employers with 15 or more employees, and the number of scholarship holders should not exceed 2% of the workforce.
- Military Leave: When an employee is called to partake in Compulsory Military Service in the National Armed Forces, they are entitled to paid absence. The employer is required to pay a proportion of the salary: 100% for the first month, 50% for the second month, and 25% for the third month.
- Voting Leave: Employees are entitled to the necessary time off to exercise their right to vote. They may be required to show proof of voting, such as a stamped voting card.
- Unpaid Leave: While not legally required by labor laws, unpaid leave for personal matters, extended holidays, or educational goals can be negotiated between the employer and employee based on company policies.
- Sabbatical Leave: For staff members with over five years of service who are awarded a scholarship to study overseas in areas related to their profession, up to one year's leave can be allowed, with six months being remunerated.
