Find your employer of record in Ecuador

Undoubtedly, your Professional Employer Organization in Ecuador may tell you that local authorities do not have a strict visa policy. Indeed, it allows foreign citizens to stay up to 90 days without one. Nevertheless, you will need a temporary resident visa if you want to be there for more days.

Types of Visas

In essence, the visas you can use to study in Ecuador or to be among Ecuadorian employees are valid for two years. Besides, you can renew them before they expire. In this sense, the types of visas you can request in Ecuador are the following:

• Work Visa: It applies to foreigners who work for Ecuadorian companies.
• Student Visa: Foreigners can get this visa if they become students of a university or academic program in Ecuador.
• Retirement Visa: Are you a foreigner with the financial means to retire in Ecuador? This visa is for you.

On the other hand, all visas in Ecuador, including the ones you need to work in payroll outsourcing, are the responsibility of the Ecuadorian Embassy or Consulate. Furthermore, you may need to translate it into Spanish.

Above all, foreigners who have 21 months of living or working in Ecuador under a temporary resident visa can apply for a permanent resident visa.

In Ecuador, the standard VAT rate is 12.00%.

Termination Process

Indeed, no employment laws in Ecuador dictate how the termination process should be. Instead, it depends on employment agreements and collective agreements. Moreover, the reason for termination and the type of contract also influence it. 

Notice Period

As with the termination process, it is not a statutory obligation to use a notice period. On the contrary, employees in Ecuador stipulate it according to their employment contracts and collective agreements.

Severance Pay

In Ecuador, employers can calculate the financial compensation related to employment termination according to the Ecuadorian Labor Code. Therefore, EOR providers in Ecuador must provide a severance pay of one-month salary for each year of service.

Furthermore, severance pay must be pro-rated for any part-year worked. In addition, it has a minimum compensation of three monthly payments and a maximum of 25 monthly payments.

Finally, Ecuadorian employees can get a 25.00% sudden dismissal bonus of monthly wages from their employers. Above all, it applies to each completed year of service.

Probation Period

An Employer of Record Company in Ecuador can use a probationary period for new employees. However, it will depend on the employment agreement and the type of roles. Consequently, Ecuadorian employees have a probation period of three months or less.

Paid Time Offs

When you outsource your company payroll in Ecuador, you must know that your employees do not deserve paid leave until their service length is one year. In this case, Ecuadorian workers get a standard paid leave of 15 days.

On the other hand, employees who provide Contractor Management Services in Ecuador can increase their paid leave to 16 days. However, it involves a continuous service length of five years with the same employer.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 30 vacation holidays throughout the year.

Sick Days

In essence, Ecuadorian employees must contribute continuously to the Ecuadorean Social Security Institute (IESS) for 180 days to get paid sick leave. Nonetheless, this contribution must be within six months before the day the illness begins.

On the contrary, Ecuadorian workers must contribute continuously for 189 days to get it within eight months before the day the illness appears.

In addition, the EOR companies and other employers in Ecuador must cover their paid sick leave for the first three days. After that, the covering task passes to the IESS.

Above all, employees in Ecuador must provide a professional medical certificate within 48 hours of the sick period's beginning.