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UNITED STATES DEPARTMENT OF LABOR
W . N. DOAK, Secretary
BUREAU OF LABOR STATISTICS
ETHELBERT STEWART, Commissioner
BULLETIN OF THE UNITED STATES 1
C CO
BUREAU OF LABOR S T A T I S T I C S ] ..................... I l O . D D iJ
FOREIGN
LABOR
LAWS
SERIES
LABOR LEGISLATION
OF ECUADOR
NOVEMBER, 1931
UNITED STATES
GOVERNMENT PRINTING OFFICE
W ASHINGTON : 1931
For sale by the Superintendent of Docum ents, W ashington, D. C.
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Price 10 cent?
Acknowledgment
This translation of the labor laws of Ecuador was made under
the direction of Ethel Y . Larson, of the Bureau of Labor Statistics.
ii
Contents
Page
Introduction and summary_______________________________________________
Text of legislation:
Workmen’s compensation—
Law of October 6, 1928__________________________________________
Prevention of industrial accidents—
Law of March 4, 1927___________________________________________
Maximum length of working day, and weekly rest—
Law of October 6, 1928__________________________________________
Apothecary shops, drug stores, and pharmacies—
Regulatory decree of November 12, 1926______________
Barber shops—
Regulatory decree of November 12, 1926______________
Employment of women and minors—
Law of October 6, 1928__________________________________________
Individual labor contracts—
Law of October 6, 1928__________________________________________
Notice required for termination of employment contracts—
Law of October 6, 1928__________________________________________
Procedure in actions at law relating to labor—
Law of October 6, 1928__________________________________________
Retirement annuities and pensions—
Civil employees—
Law of March 8, 1928______________________________________
Bank employees—
Law of October 6, 1928--------------------------------------------------------General labor inspection service—
Law of July 13, 1926____________________________________________
Regulatory decree of July 29, 1926______________________________
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BULLETIN OF THE
U.S.BUREAU OF LABOR STATISTICS
No. 559
WASHINGTON
November, 1931
LABOR LEGISLATION OF ECUADOR
Introduction and Summary
The United States Bureau of Labor Statistics, continuing its series
of bulletins on labor legislation enacted in the Latin American coun
tries, presents in this volume the labor laws of Ecuador, which have
been compiled and translated from the original Spanish texts ob
tained through the State Department from the American consul
general at Quito.
W o rk m e n ’s Compensation
The law of October 6, 1928, provides that employers shall be liable
for accidents occurring to their employees while in the performance
of their duties and which arise out of and in the course of the occu
pation in w^hich they are employed, or which are due to a fortuitous
event or force majeure connected with the nature of the work.
The liability of the employer extends also to occupational diseases
or diseases caused directly by the exercise of the occupation.
Benefits
Workers injured in accidents shall be entitled to compensation as
follows:
(a) I f the accident causes the death of the worker, the employer is
required to pay funeral expenses, which shall not exceed 100 sucres,1
and in addition to pay to the family of the deceased worker compen
sation equal to three years’ wages.
(b) In case of permanent total disability for all work resulting
from the accident, the employer shall pay to the injured worker
compensation equal to three years’ wages.
( g) In case the accident results in permanent total disability for
the regular work of the employee, the employer shall pay him com
pensation equal to two years’ wages.
(d)
I f the accident causes permanent partial disability for the
occupation or kind of work in which the injured worker was regu
larly engaged, the employer shall pay compensation equal to two
years’ wages, but considering in this case as day wages the daily
reduction in his wages which he may have suffered as a result of the
accident.
* 1 sucre at par = 20 cents; 1 centavo = 0.2 cent.
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L A B O R L E G IS L A T IO N
OF ECTJADOB
(e)
I f the accident results in temporary disability, the employer
shall pay to the injured worker compensation equal to 50 per cent
of the wages he was receiving when the accident occurred, from the
day of the accident until he is in a condition to return to work, it
being understood that the compensation shall be paid periodically
and on the same days on which the worker has been accustomed to
receive his wages.
I f after one year the disability has not disappeared, the compensa
tion shall be governed by the provisions relating to permanent
disability.
Accident Prevention
The law of March 4, 1927, requires preventive measures to be
adopted against industrial accidents and occupational diseases. E m
ployers are obliged to observe, in factories, workshops, and in all
other establishments, the legal requirements as to sanitation and
health and to adopt adequate measures to prevent accidents in the
use of machines and other instruments. Labor inspectors shall see
that employers comply with the regulations issued by the health
authorities, among which are the following: (1) A ll workrooms
must be kept clean and free from any noxious emanations; (2) proper
lighting and sufficient means of ventilation must be provided in all
the workrooms; (3) the health authorities are to determine the num
ber of persons who may be employed in any work place; (4) special
care must be taken to maintain order and good morals in the estab
lishment; (5) smoking is prohibited in all factories.
The law stipulates that if dust or other impurities are generated
in quantities tending to injure the health of the employees, proper
devices to remove such impurities from the workroom shall be
provided.
Women and children under 18 years of age may not be employed
in the following industries or occupations: (1) Work involving the
danger of industrial poisoning, as in the manufacture of white lead,
red lead, paints, or varnishes which contain lead or arsenic salts;
(2) manufacture of explosive, inflammable, or caustic substances;
(3) operations in which injurious dust is produced, as in the cut
ting and polishing of glass or emery polishing; (4) stevedoring;
(5) oiling of machinery while in motion; and (6) work requiring
the handling of belts, circular saws, and similar mechanical
apparatus.
Woman employees must be given leave of four weeks before child
birth, and six weeks thereafter, at one-half of their regular wage.
Pregnancy may not be alleged as a reason for dismissal.
Those who do such work as stonecutting, emery polishing, photo
engraving, marble work, and the like, must wear masks or some
similar protective device. Employers of workers constructing or
cleaning the inside of conduits, cesspools, etc., must previously have
taken measures to have such places ventilated. Scaffolding on build
ings over a certain height must be equipped with a handrail on each
side.
The cleaning of machinery while in motion is prohibited. Pulleys,
belts, gears, slides, and in general all projecting parts of machines
shall be substantially guarded. Proper belted-in garments shall be
I N T R O D U C T IO N A N D S U M M A R Y
3
worn by those working on machines. Before the starting of all
machines ample warning shall be given by effective signals.
A ll industrial establishments shall have emergency medicine chests
to provide first-aid treatment to the workers in case of accident.
Operators who use electricity shall be taught the dangers to which
they are exposed and shall be provided with insulators and other
protective devices.
W ork in g Hours and W ee k ly Rest
On October 6, 1928, a law was promulgated relating to maximum
hours of work and the weekly rest period. This law which became
effective January 1, 1929, applies to all employees with the exception
of the following: Domestic servants, home workers, casual workers,
commission agents and traveling salesmen, and persons engaged in
work of a confidential, managerial, or supervisory nature, for which
special regulations will be drawn up later.
The hours of work are fixed at eight per day, with a rest period of
two hours after the first four hours of work, or at any other time
fixed by common agreement between employer and employee; the
number of working days will be six per week.
Overtime must in no case exceed 2 hours per day or 12 per week
and will be paid at a rate of from 50 to 100 per cent higher than the
normal rate.
A weekly rest period of 36 consecutive hours must be granted to
workers on Sunday or on some other day on which the parties con
cerned may agree. No work shall be carried on on Sunday except in
industries in wThich work must not on any account be interrupted, or
in case of unavoidable necessity or imminent danger of accident.
I f work is performed between 7 p. m. and 6 a. m. the daily hours of
wrork shall be reduced to seven.
Several sections of the law deal with the making up of lost time,
fines for violations, the duties of factory inspectors, and the posting
of schedules of working hours.
Sunday Closing
According to two regulatory decrees of November 12, 1926, barber
shops and drug stores (except those taking their turn at continuous
service) must remain closed on Sunday in compliance with the Sun
day rest law.
Fines are imposed on those who violate either of these decrees.
Em ploym ent of W o m e n and Minors
A law of October 6, 1928, prohibits the employment of women and
minors under 16 years of age between 7 p. m. and 6 a. m., except in
domestic service. Women over 18 years of age may work at night as
nurses or in telephone offices, theaters, and motion-picture houses.
The law further prohibits the employment of women or boys under
16 years of age in dangerous or unhealthful industries or in work
which might endanger their physical or moral development. I f a
woman or minor under 16 years is employed in any of the prohibited
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L A B O R L E G IS L A T IO N
OF E C U A D O R
conditions and becomes ill, or meets with an accident, it will be pre
sumed that the employer is responsible for the accident or illness.
In all industrial and commercial enterprises, whether public or
private, it is forbidden to employ women for three weeks before and
three weeks after childbirth. Pregnant women may leave their em
ployment on presentation of a medical certificate. No woman may be
dismissed during pregnancy and her post must be kept open for six
weeks, during which period she shall receive 50 per cent of her wages.
I f the woman remains away from her work longer than the period
specified because of illness due to childbirth, her post must like
wise be kept open.
Only in exceptional cases may minors under 14 years of age be
allowed to work.
Labor Contracts
The individual labor contract law of October 6, 1928, covers oral
and written labor contracts. Its provisions do not apply, however,
to agricultural or domestic labor, nor to home w7ork; i. e., that per
formed only by members of the same family under the direction of
one member.
The maximum duration of the labor contract is one year if it is
oral and not more than three years if executed in writing.
Every written contract shall contain a statement of (1) the kind
of work to be performed; (2) the remuneration and the method of
pa}^ment; (3) the duration of the contract; and (4) the place where
the work is to be performed.
Definite regulations are specified in the law as regards the ter
mination of contracts, both on the part of the employer and the
worker.
Notice Required for Termination of Contracts
According to the terms of an act of October 6, 1928, if the duration
of the work was not definitely fixed in the labor contract, neither
party may terminate it without giving the other party notice in
writing, which shall be at least one month in advance when given by
the employer and 15 days when given by the worker.
The employer who dismisses a worker without giving the required
notice must pay him an amount equivalent to one month’s pay. Like
wise, the worker who quits his work without giving the necessary
notice must pay the employer a sum equivalent to 15 days’ pay, or be
required to continue his work for 15 days.
The law contains several exceptions.
Procedure in Actions at Law Relating to Labor
A law enacted on October 6, 1928, lays down in considerable detail
the procedure that must be followed when disputes arise over the
administration of the labor laws or in connection with labor con
tracts, workmen’s compensation, etc.
The labor deputies must settle disputes of this nature in localities
where there are such officials, and in other localities the chief police
authority will act in this capacity.
IN T R O D U C T IO N A N D S U M M A R Y
5
Retirement Annuities and Pensions
Government Employees
The retirement, pension, savings, and mutual funeral benefit act
of March 8, 1928, provides benefits for Government employees, both
civil and military. The law creates a pension fund to receive,
administer, and distribute retirement annuities and pensions, and
states the conditions of retirement benefits and of benefits to heirs
of employees dying in the service or while receiving an annuity. It
establishes a savings department for those included under the provi
sions of this law, as well as a mutual fund to cover funeral expenses.
The resources of the fund are derived from the following sources:
Monthly contributions of the Government employees and other per
sons covered by the law for retirement annuities, savings, and pen
sions; 5 per cent deduction on all retirement annuities; interest on
the capital of the fund; 50 per cent of the increase of the first
month’s salary of an employee when given an increase in pay; con
tributions of persons other than Government employees who wish to
benefit by the law; deductions and donations made under the mili
tary retirement and pension laws; and any donations made by the
National Government, municipalities, or private individuals.
The retirement annuity shall be calculated on the basis of the
average salary received during the last five years of service. An
employee may be granted full annuity after 30 years’ service regard
less of his age; an employee who has served 25 years and is over 60
shall also obtain the full retirement annuity; one who has served 25
years but is under 60 shall receive 80 per cent of the annuity.
Ketirement is compulsory at 65 years of age, but may be postponed
to 70 years by special permission of the head of the service. Disa
bility retirement is granted, after 10 years’ service, for disability in
the line of duty from a cause arising out of the service. The benefit
varies between 20 and 60 per cent of the full annuity, based on the
extent of the disability and the years of service rendered.
I f the employee died in the service, his heirs (who are specified in
the law) shall receive an income of from 20 to 80 per cent of the
average salary received by the deceased during the last five years.
I f the deceased employee had been retired, the heirs receive an
income of from 20 to 60 per cent of the retirement annuity.
A ll Government employees, including those who have been re
tired, shall deposit in the fund through the disbursing officers the
following amounts for the mutual funeral benefit: Employees re
ceiving a monthly salary exceeding 500 sucres, 1 sucre; those receiv
ing from 150 to 500 sucres, 50 centavos; those receiving up to 150
sucres, 25 centavos. Whenever a retired employee or one in the
service dies, the fund pays his heirs a sum equal to the amount
deposited for such emergencies. The disbursing officers then make
the above-mentioned deductions from the salaries to take care of
the next death that occurs.
Bank Employees
A retirement fund was created for employees of banking institu
tions by the law of October 6, 1928.
75690°— 31------ 2
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L A B O R L E G IS L A T IO N
OF E C U A D O R
The fund is to be derived from the following sources: (1) A
compulsory deduction of 5 per cent from the salaries of bank
employees; and (2) a monthly contribution by the banks of 5 per
cent of the salaries of the said employees.
The banks are required to retire employees who, for reasons of
age, disability, or length of service, are entitled to this privilege, in
conformity with the provisions of the retirement law for Government
employees of March 8, 1928.
A bank employee who voluntarily or for a just cause leaves his
employment shall be entitled to collect the amount of his contribu
tions and those of the employer that belong to him. I f his separa
tion from the service is due to his own inefficiency, he shall be
entitled only to the amount of his contributions.
Labor Inspection Service
A labor inspection service was established in Ecuador by an act of
July 13, 1926, and its regulatory decree of July 29, 1926, for the
purpose of enforcing the observance of the labor laws.
The duties of the director of the service as well as of the labor
inspectors are given in detail.
Text of Legislation
W o rk m e n ’s Compensation
LA W OF OCTOBER 6, 1928
A rticle 1. Any employer who has charge of the performance o f work shall
be liable for any accidents which may happen to his employees and workers
while in the performance of their duties and which arise out o f and in the
course otf the occupation in which they are employed, or which are due to a
fortuitous event or force majeure connected with the nature o f the work.
When the performance of the work or the operation o f the industry is done
under contract, the contractor shall be considered the employer, the subsidiary
liability o f the owner continuing however.
A rt. 2. For the purposes of this law, by “ accident ” is understood any bodily
injury which the worker or employee suffers in the course o f or arising out
o f the work which is being performed for another.
The liability o f the employer extends also to occupational diseases or diseases
caused directly by the exercise o f the occupation or the performance of the
work by the worker or employee and which cause disability.
The Ministry o f Social W elfare and Labor shall determine in a special regu
lation the occupational diseases to which the preceding article refers and may
revise this regulation every three years.
A rt . 3. Disability caused by an accident shall be compensated for under this
law only when it lasts longer than six days.
A rt . 4. The employer shall be exempt from all liability for an industrial
accid en t:
(a) When it has been caused intentionally by the injured worker or is due
entirely to his own fault.
(b) When it is due to force majeure not connected with the nature of the
work, understanding as such that which does not have any relation to the
performance o f the said work.
The employer shall also not be liable to any o f the heirs of an injured worker
when the latter intentionally caused the accident or brought it about by his
own fault, and this without prejudice to any criminal liability in the case.
Carelessness in the occupation, or that which is the result of confidence due
to habitual performance o f the work, does not exempt the employer from
liability.
P roof o f the exceptions mentioned in this article must be provided by the
employer.
A rt . 5. The liability o f the employer is presumed with respect to any acci
dent occurring under the conditions described in article 1 of this law, and with
no exceptions other than those specified in the preceding provision.
A rt . 6. The employer may discharge his obligations relative to compensation
by obtaining at his own expense an insurance policy in favor of the workers
or employees in question from an insurance company legally organized under
the provisions of the Code of Commerce, provided the benefits are not less
than those provided by this law.
A rt . 7. The industries or works whose employers are liable a r e :
1. Factories, workshops, and industrial establishments in which power other
than man power is used.
2. Mines, salt works, and quarries.
3. Metallurgical factories and workshops, and construction work and ship
building.
4. Construction, repair, and maintenance of buildings, including masonry and
other related work, such as carpentry, locksmithing, stonecutting, painting, etc.
5. Establishments producing, or using industrially explosive, inflammable,
unhealthful, or poisonous substances,
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OF E C U A D O R
6. Construction, repair, maintenance, and operation o f railroads, harbors,
roads, bridges, canals, dams, wharves, aqueducts, sewers, and other similar
works.
7. W ork in agriculture, forestry, and stock raising, where one or more
machines moved by mechanical power are used, but in this case the employer
is liable only as regards the personnel employed in the operation and service
o f the motors and machines and the workers who are injured in accidents
connected therewith.
8. Cartage and transportation by land, sea, and inland waterways.
9. River and deep-sea fishing undertakings.
10. Cleaning o f streets, cesspools, and sewers.
11. Warehouses, and wholesale depots o f coal, firewood, and lumber, and
mercantile establishments in general, with respect to their employees, clerks,
servants, and traveling salesmen.
12. Theaters, with respect to their wage-earning personnel.
13. Gas works and electric-power houses.
14. W ork o f placing, repairing, and removing electric conductors and light
ning rods; and the placing, repair, and maintenance o f wireless stations, tele
graph and telephone systems, piping, and masonry work underground or in
sewers.
15. All workers employed in loading and unloading.
16. Hospitals, insane asylums, almshouses, colleges, and similar establish
ments with respect to the wage-earning personnel for accidents suffered while
perform ing their duties.
17. Any similar industry or work not included in the preceding enumeration
which the Ministry of Social W elfare may declare, after receiving a report
from the labor inspector, at least 30 days in advance o f the date o f the accident.
A rt . 8. The preceding article shall not apply to domestic servants.
A rt . 9. F or the purposes of the compensation provided by this law , accidents
shall be classified as fo llo w s :
1. Accidents which result in temporary disability.
2. Accidents which result in permanent partial disability for the regular
occupation.
3. Accidents which result in permanent total disability for the regular
occupation.
4. Accidents which result in permanent total disability for all work.
5. Accidents which result in death.
A rt . 10. Temporary disability, within the meaning of the preceding article,
shall consist of any injury which may be cured within one year, leaving the
worker or employee able to perform his regular work.
Permanent partial disability fo r the regular work shall mean that injury
which after recovery leaves the worker or employee with a disability which
reduces his capacity for the occupation in which he has been engaged.
Permanent total disability for the regular work shall mean any injury
which after recovery leaves the worker or employee totally unable to perform
any work in the same occupation, even though he may be able to perform other
work.
There shall be considered as permanent disability for all w ork that which
entirely prevents a worker or employee from perform ing any trade or work.
A rt . 11. W orkers or employees injured in accidents under the conditions
contemplated by this law shall be entitled to compensation in the form and
amount established in the follow ing provision s:
(a )
I f the accident results in temporary disability, the employer shall pay
to the injured worker compensation equal to 50 per cent o f the wages he was
receiving when the accident occurred, from the day on which the accident
occurred until he is in a condition to return to work, it being understood that
the compensation shall be paid periodically and on the same days on which
the worker has been accustomed to receive his wages.
I f after one year the disability has not disappeared, the compensation shall
be governed by the provisions relating to permanent disability.
(&) I f the accident causes permanent partial disability for the occupation
or kind o f work in which the injured worker was regularly engaged, the em
ployer shall pay compensation equal to two years’ wages, but considering in
this case as day wages the daily reduction in his wages which he may have
suffered as a result o f the accident.
T E X T OF L E G IS L A T IO N
9
(c ) In case the accident results in permanent total disability for the regular
work of the employee or worker, the employer shall pay to the injured worker
compensation equal to two years’ wages.
( d ) In case o f permanent total disability for all work resulting from the
accident, the employer shall pay to the injured worker compensation equal to
three years’ wages.
( e ) I f the accident causes the death of the worker or employee, the employer
is required to pay the funeral expenses, which shall not exceed 100 sucres,
and in addition to pay to the family of the deceased worker compensation
equal to that provided in the preceding section.
The compensation referred to in sections (&) and (c ) of this article shall be
paid in monthly payments in advance; but that specified in sections ( d ) and
( e ) shall be paid in a lump sum.
A rt . 12. F or the purposes of the last provision, by “ fam ily ” shall be under
stood the surviving spouse and the minor children of the deceased. The
ascendants and the grandchildren and brothers and sisters up to 16 years of
age shall be included in the fam ily only if at the time of the accident they were
living with and were supported by the deceased, or if for any reason they are
incapacitated for work.
The compensation shall be considered community property and shall be dis
tributed among the heirs in the proportion and manner provided by the Civil
Code.
The surviving husband is entitled to compensation only if he is unable to
work.
A rt. 13. In addition, the employer shall be required to pay, without right of
reimbursement, for medical and pharmaceutical attention to all workers or
employees who are injured in industrial accidents, until, in the opinion o f the
physician, they are in a condition to return to work, or are declared to come
within one of the classes of permanent disability and not to need any further
attention; said attention shall be given under the direction o f physicians named
by the employer.
The injured worker or employee, or his family, has the right, however, to name
for himself and at his own expense one or more physicians to supervise the
attention given by the physician named by the employer.
The employer, as well as the worker or employee, may request the services
of the puDlic health physicians, who shall render their services gratuitously
if called by the worker or employee, and at a special rate fixed by the directors
and assistant directors, respectively, if they are called by the employer.
A rt . 14. For the purposes o f the provisions of sections (&), ( c ), { d) , and
(e ) of article 11, by “ annual wage ” shall be understood that which the worker
received during the year preceding the accident from the employer liable for
the compensation.
If the worker did not w^ork for the employer during the entire year, the
daily wage shall be calculated by dividing the injured employee’s earnings
during the time that he worked by the number o f days which he worked. For
this purpose Sundays and holidays shall be deducted only when the worker,
before the accident, had those days as rest days and did not receive wages
therefor.
I f the wage of the worker was variable, or his work was by the job, the
annual wage shall be determined by the rules contained in the two preceding
paragraphs, according to whether the employee worked in the service o f the
employer one year or less than one year.
The determination of the wage which in whole or in part is not received
in money shall be made by agreement betwTeen the pa rties; and if they can
not come to an agreement, it shall then be decided by the judge in the case,
who shall take into consideration the value in the locality of the products
and other payments in kind furnished by the employer, the rate of wages of
workers in the same occupation or trade, and other circumstances attending
the performance of the work which may help in the determination of an
equitable wage.
I f the worker and the employer have no agreement as to the amount o f the
wage, 2 sucres 50 centavos shall be fixed as the minimum wage per day in
the coastal region, and 2 sucres per day in the mountain region, and this shall
apply even to apprentices who do not receive any remuneration.
A rt . 15. The accident compensation to be paid to employees who receive
their w ages or salaries by the month shall be determined by m ultiplying the
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L A B O R L E G IS L A T IO N
OP E C U A D O R
amount of said salary by 24 or 36 according to whether the compensation is
that provided for in sections ( c ) , ( d), or (e) of article 11.
A rt . 16. The annual wage or salary shall never be considered as exceeding
3,600 sucres.
The benefits o f this law are available to workers or employees who receive a
larger remuneration, up to the maximum fixed in the preceding section. H ow
ever, workers or employees who earn more annually than the said amount may
stipulate with their employers for higher compensation for accidents than that
provided for in this la w ; but the amount of compensation which exceeds the
legal maximum may be claimed only under the general laws.
A rt . 17. The compensation for permanent disability determined in article 11
shall be independent o f that stipulated in section (a) o f the same article for
cases o f temporary disability.
In the same manner, compensation for death does not exclude that due the
injured worker during the period between the accident and the death resulting
therefrom.
A rt . 18. Even when the accident is the result of a fortuitous event or force
majeure not connected with the nature of the work, if it occurs in the place
where the work is performed, the employer must provide first-aid treatment.
I f he fails to do so, he shall be fined from 50 to 100 sucres, which shall be paid
to the injured worker.
A rt . 19. Instead of the compensation fixed in section (e ) of article 11, the
employer may, after consent by the heirs, grant life pensions in the follow ing
form and amount, provided he guarantees them to the satisfaction o f the
heirs o f the deceased :
1. An amount equal to 40 per cent of the annual wage o f the deceased,
payable to the widow, children, or grandchildren under 16 years o f age.
2. Twenty per cent to the widow without children or other descendants of
the deceased.
3. Ten per cent to each one o f the ascendants who is incapacitated for
work or wiio was supported by the deceased.
These pensions shall cease in respect to the surviving spouse if she or he
rem arries; and in respect to the children and grandchildren of the deceased
when they reach the age o f 16 years.
The naming o f the heirs to receive the pension and the distribution thereof
shall always be made in accordance with the provisions o f the Civil Code
and on the death or disqualification of any one of the heirs his share shall be
added to that o f the others.
A rt . 20. T he compensation fixed by this law shall be increased 50 per cent
i f the accident w as caused by the employer’s failure to observe the precautions
prescribed by the law on prevention of industrial accidents.
A rt . 21. A n y amounts wThich the worker or employee owes the employer for
advances made to him shall be deducted from the am ount which the employer
owes for compensation under these provisions.
A rt . 22. The amount of the compensation in any case may be reduced
by the judge at his discretion, but only when it is fully proved that the re
sources o f the employer are not sufficient to cover the legal compensation for
which he is liable.
A rt . 23. I f the employer becomes bankrupt while a claim for compensation
for an accident is pending, the amount of the compensation to which the worker
or employee is entitled shall be considered as a preferential claim in the
creditors’ meeting.
A rt . 24. A ny clause which exempts the employer from liability for accidents
w hich’ m ay occur shall be null and void, and in general any agreem ent which
is in any w ay contrary to this law shall be null.
A rt . 25. Likewise, the rights granted by this law to workers and employees,
as well as the compensation to which they are entitled, can not be renounced,
transferred, offset, withheld, nor attached, nor shall there be stipulated a
method o f payment different from that fixed in the law.
The case provided for in article 21 is excepted from this provision.
A r t 26 For the enforcement o f the preceding provisions, the Minister of
Social W elfare shall determine, in the regulation referred to in article 2, the
injuries which shall be considered permanent disabilities for the regular work,
whether partial or total, and those which shall be considered permanent total
in accordance with the corresponding classification.
T E X T OF L E G IS L A T IO N
11
A rt . 27. Without prejudice to the liability o f the employer, the worker
injured in an accident or those who are entitled to the compensation may claim
from third parties causing the accident the total compensation for the damages
suffered, in accordance with the provisions of the general laws.
The compensation obtained from third parties in accordance with this article
frees the employer from his liability for the part that the third parties who
caused the accident are required to pay.
The action against thii^d parties may be brought by the employer at his own
expense, and in the name of the injured worker or of those who are entitled
to the compensation, if they have not instituted the same within a period of
30 days from the date o f the accident.
In this case by “ third parties ” is understood persons not connected with
the work or industrial operation, the employer and his workers and employees
thus being excluded from such class.
A rt . 28. A ll claims for damages for acts not covered by these provisions or
those which involve misconduct or negligence compensable civilly, shall be
subject to the provisions of the civil law.
A rt. 29. The worker or employee, and in case o f death his heirs, must report
the accident to the labor inspector if there is one in the place, or if not to the
police authority, within 48 hours after the occurrence of the accident, under
penalty of a reduction of 25 per cent of the compensation, except when there
is a good reason, duly proved.
The employer is also required to report the accident within 48 hours after
he has been notified thereof, under penalty o f from 50 to 100 sucres fine.
The report of the worker and of the employer shall contain: (a) The causes,
nature, and circumstances o f the accident ; (&) the persons injured and the
place where they are to be fou n d; (c ) tlie nature of the injuries; ( d ) the
persons who are entitled to receive compensation; ( e ) the daily and annual
wages received by the injured workers.
The authority receiving the report is required to verify the facts, especially
if there is a discrepancy in the statements o f the employer and those o f the
injured worker or his heirs.
The police authorities who receive reports o f this kind shall send the same
monthly to the labor inspectors o f the respective districts, who in turn shall
prepare general statistical tables of the accidents occurring in their districts,
and shall send them, also monthly, to the Ministry o f Social W elfare and Labor,
under penalty of a fine o f 50 sucres in case o f omission or delay.
A rt . 30. When a worker or employee dies or is disabled for work as the
result of a disease contracted in the course of his work, he or his heirs shall
be entitled, under the follow ing circumstances, to the same compensation as is
granted by this law in the case of disability or d ea th :
( a) The disease must be declared to have originated exclusively in the work
performed by the deceased during the time in which the disability arose.
( b) Compensation shall not be paid if it is proved that the worker or em
ployee was suffering from the disease before entering the employment that
he had to relinquish.
(c ) The compensation shall be exacted from the employer by whom the
worker was engaged in the kind o f work which caused the disease.
(d) I f the disease, owing to its nature, could have been contracted grad
ually, the employers in whose service the worker had been employed in the
work or works which caused the disease shall be required to pay compensation
in proportion to the time each had employed him. The proportion shall be
fixed by the judge if a dispute arises concerning it.
(e) The employer in whose service a worker or employee is disabled from a
disease shall report it as in the case o f an accident.
The proper authorities are required to comply with the provisions o f the
preceding article.
A rt . 31. Actions demanding enforcement of the provisions of this law shall
expire in one year.
A rt . 32, There are hereby repealed all laws, decrees, and other provisions
which are contrary to this law, which shall be in force on January 1, 1920.
The Ministry of Social W elfare and Labor shall have charge o f the enforce
ment o f this law.
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L A B O R L E G IS L A T IO N
OF E C U A D O R
Prevention of Industrial Accidents
LAW OF MARCH 4, 1927
A rticle 1. Owners of enterprises o f all kinds shall be required to provide
for their employees working conditions which do not endanger their health
or safety in any manner.
A rt . 2. The labor inspectors shall require owners of workshops or factories
to comply with the regulations issued by the health authorities, and in par
ticular with the follow ing rules:
1. W ork places shall always be kept clean and free from all noxious emana
tions.
2. Workrooms shall be adequately lighted and ventilated.
3. The number of workers in any work place shall not exceed the number
fixed by the health authority.
4. Offenses against public order and morals shall not be committed on the
premises of enterprises and workshops.
5. Every factory shall provide the sanitary equipment prescribed by the
health authority, which shall also fix the places in which the said equipment
shall be installed.
A rt . 3. In every factory where work is carried on which generates dust or
other impurities liable to be inhaled by the workers to a dangerous degree,
ventilators, exhausts, or other suitable mechanical apparatus for the prevention
o f diseases likely to be caused by said emanations shall be installed in conform
ity with the recommendations of the health authority.
A rt . 4. Smoking in factories is prohibited.
A rt . 5. The employment of women and of minors under the age o f 18 years
in the follow ing occupations shall be prohibited:
(a ) Manufacture of white lead, red lead, or any other kind of poisonous
coloring matter, and the handling of paint, enamel, or varnish containing lead
or arsenic salts;
(&) Manufacture, preparation, or handling of explosives and inflammable or
caustic substances;
(c) W ork in premises or places in which explosives or inflammable or caustic
substances are manufactured, prepared, handled, or stored in such quantities as
to involve risk o f acciden t;
(<L) Cutting or polishing of glass and polishing of metals with emery, and
work in any premises or place in which dust or irritating or poisonous fumes
are habitually em itted;
( e ) W ork as locomotive engineers or firemen;
i f ) Loading and unloading o f vessels;
{g) Lubrication o f machinery in m otion; and
( h ) Handling of belts, circular saws, and other dangerous machinery.
A rt . 6. Women shall cease work four weeks before confinement, and shall
not resume it until six weeks after confinement. Employers shall not declare
their jobs lost for this reason, and shall pay them 50 per cent o f their wages
during the period specified.
Employers shall not dismiss pregnant women without law ful reason.
A rt. 7. All workers, such as stonecutters, emery polishers, photo-engravers,
marble workers, etc., who are exposed to the risk of losing their sight, by the
nature o f the work which they perform, shall, if they work independently for
themselves, use masks or other similar protective devices. If they work for an
employer, the latter shall be required to provide the necessary safety devices.
A rt . 8. Scaffolding of a height exceeding 3 m eters1 on houses under construc
tion or repair, or other similar work, shall be provided on each side with a hand
rail not less than 90 centimeters 2 high.
A rt . 9. The cleaning of machinery in motion shall be prohibited.
In the case o f other dangerous machinery, the necessary safety measures
shall be adopted in each case.
A rt . 10. In construction work, cleaning, or the performance o f any other kind
of w7ork inside drains, cesspools, etc., measures shall be taken in advance to
provide adequate ventilation.
A rt. 11. Pulleys, belts, gears, slides, projecting parts of machinery in motion,
etc., shall be provided wTith the necessary guards.
l l meter =
al
3 9 .3 7 'inches.
centimeter = 0.3937 inch.
T E X T OF L E G IS L A T IO N
13
A r t . 12. W orkers employed on dangerous work, and in general all workers
employed in connection with machinery, shall wear belted-in garments.
A rt . 13. Before operating a machine of any kind, the person in charge shall
see that the operation thereof does not present any danger, and in case any
danger exists, he shall at once inform the employer, in order that the latter
may give orders for the alterations or repairs needed to put the machine into
perfect working order. I f the employer fails to comply with this obligation,
the worker or employee shall notify the authority of the place nearest to his
residence, and said authority shall suspend the use of such machine and notify
the General Labor Office. I f the machine is put into perfect working order
before the Labor Office has taken any steps in the matter, the employer shall
notify the authority which suspended the use of the machine, and the said
authority, after satisfying itself that the operation of the machine does not
present any danger, shall permit the machine to be used.
A report shall be made as regards the order suspending the use o f the ma
chine, and also the order permitting it to be used, under the direction of the
authority which issued the said orders. This report shall be signed by the said
authority and by the employer, or, if the latter is not able or willing, by a
witness.
A rt . 14. Before a machine is put into operation, the workers shall be noti
fied by a signal agreed upon in advance and known to all the workers.
A rt. 15. Every industrial establishment shall keep a first-aid chest for the
purpose of rendering first aid to workers in case of accident.
A rt. 16. W orkers using electricity shall be warned o f the danger to which
they are exposed, and shall be provided with insulators and other safety
devices.
A rt . 17. The Ministry o f Social W elfare and the labor inspectors shall re
quire factories, workshops, or workrooms to adopt all the safety measures
which the ministry and the inspectors deem necessary for the health or safety
of the workers.
A rt. 18. Employers, heads of enterprises, and workers who fail to comply
with the provisions of this law or of the orders issued thereunder by the
proper authorities, shall be fined in accordance with the provisions of article 22
of the regulations respecting the general labor inspection service.
A rt . 19. The Minister o f Social W elfare and Labor shall be responsible for
the administration o f this law.
M axim um Length of W orkin g Day, and W ee k ly Rest
LA W OF OCTOBER 6, 1928
A rticle 1. The maximum length o f the working day for all employees,
whether salaried employees or manual workers, employees in shops, offices,
industrial or commercial establishments, and in general for all employees who
render services in private establishments in return for a wage or salary or at
piece rates, shall be eight hours.
A rt . 2. The legal w orking days shall not exceed 6 per week, nor the weekly
hours of work 48.
Sundays shall be obligatory rest d a y s ; and if it is impossible, because of the
circumstances, to suspend work on Sundays, another day of the week shall be
fixed by agreement between employers and workers and employees, with the
cooperation of the labor inspector and subject to the approval o f the Ministry
of Social W elfare.
The rest day may be the same for all employees or may be granted in rotation
if this is necessary owing to the nature of the work perform ed; the rest period
shall be imposed by the aforesaid ministry.
The only circumstances because of which work on Sunday may be authorized
occasionally or regularly are as fo llo w s :
1.
The necessity o f avoiding serious damage to the establishment or under
taking from an impending accident, and in general in any fortuitous circum
stances or case of force majeure which must be dealt with immediately. In
the event of such occurrence, it shall not be necessary to procure advance ap
proval of the above-mentioned ministry, but the employer shall be required to
notify the labor inspector within 24 hours after the occurrence of the accident,
75690°— 31------ 3
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L A B O R L E G IS L A T IO N
OF E C U A D O R
under penalty of a fine o f 50 sucres, which, on the application o f this official,
shall be imposed by the aforesaid ministry.
In such cases the work shall be limited to the time strictly necessary to deal
with the damage or danger.
2.
The obvious condition in certain industries, undertakings, or operations,
that the work can not be interrupted owing to the nature o f the needs which
they satisfy, for reasons o f a technical character, or in order not to cause
serious injury to public interests.
A rt . 3. The law does not recognize any obligatory rest days, other than the
days mentioned above, except the national civil holidays now observed and
which may hereafter be established by law.
A rt . 4. The performance on Sundays o f work done by the worker for himself,
if performed publicly in factories, workshops, commercial establishments, and
other work places, shall also be prohibited, subject only to the exceptions
specified in article 2.
A rt . 5. Night work, which shall mean work perform ed between 7 p. m. and 6
a. m., shall not exceed seven hours.
A rt . 6. The provisions of this law shall apply jointly to owners, contractors,
or managers who have join t interests in the sam e industry, undertaking, estab
lishm ent, or business.
A rt . 7. The follow ing shall be excepted from the provisions of this la w :
1. Domestic service and homework.
2. Services which are not continuous, casual work, and the work o f com
mission agents or traveling salesmen.
3. The work of persons in position o f trust, management, or supervision.
W ork o f the kind specified in this article shall be governed by special laws
and regulations.
A rt . 8. B y an agreement in w riting between the parties, the daily hours of
wTork m ay be extended beyond the period fixed in the preceding articles, subject
to the approval of the labor inspector and compliance with the follow ing r u le s :
(a) Overtime shall not exceed 2 hours a day and 12 hours a w eek;
(&) For each hour’s overtime the employer shall pay the ordinary remuner
ation plus 50 per cent if the overtime falls between 6 p. m. and 12 midnight, and
100 per cent if the overtime is worked between 12 midnight and 6 a. m. on the
follow ing d a y ;
(c )
In the case of w ork by the job or at piece rates, hours of work in excess
o f the legal 8 hours a day shall be taken into account in calculating the over
tim e rem u neration ;
((Z) The employer shall likewise pay an increase o f 100 per cent for overtime
worked on Sunday;
( e)
The increase shall not be paid if the overtime is not worked by order of
the employer.
A r t . 9. Not even by contract shall it be lawful to fix daily working hours
longer than those prescribed in the preceding article. Only when any o f the
cases specified under section 1 o f article 2 occurs may the said daily hours of
work occasionally be increased, the employer being required to notify the labor
inspector within the same time limit and subject to the same penalties and
restrictions as those specified in said paragraph numbered 1 of article 2.
A rt . 10. Any stipulation contrary to the provisions o f this law shall be null
and void, and any persons who agree thereto shall be liable to a fine which shall
be imposed by the Ministry o f Social W elfare at its discretion after a report of
the labor inspector.
A rt . 11. Any employer who refuses to pay wages or the pay fixed for overtime
after being notified by the labor inspector to do so, shall be fined 50 sucres for
the first offense and double that amount for successive violations.
Any employer who fails to grant the obligatory weekly rest day shall be
liable to the same penalty.
The above-mentioned fines, and also other fines provided for in this law, shall
be imposed by the Ministry o f Social W elfare after a report o f the labor inspec
tor and shall be enforced by distraint proceedings by the treasurer of the
Province in which the violation occurred. The proceeds o f the fines shall accrue
to the general funds o f the State, and shall be invested preferably in the cre
ation and operation of public libraries, night schools, workers’ dwellings, and
consumers’ cooperative societies for workers.
A rt . 12. T he daily hours; o f work shall be divided into two parts, w ith an
interval of two hours’ rest between them, either after the first four hours’ work
or at w hatever time the nature of the work which is being perform ed allow s.
T E X T OF L E G IS L A T IO N
15
A rt . 13. I f a worker without sufficient cause fails to work the fu ll time fixed
by this law, he shall forfeit a proportionate part of his daily wage, unless he
agrees with the employer to make up on subsequent days the hours o f work lost
without any wage or overtime pay.
In the case of important and urgent work which has been stopped by the fault
of the worker, who ceased work without sufficient excuse, the employer shall be
entitled to claim compensation from the worker for any loss caused by the
delay. In this case the burden of proof as to the guilt of the worker rests with
the employer.
A rt . 14. I f a general stoppage of w ork occurs owing to accidental or unfore
seen causes, force majeure, or any other reason beyond the control of employers
and workers, and the employer has paid wages or salaries in advance or con
tinues to pay them during the stoppage, the follow ing rules shall be observed:
(a) The employer shall be entitled to make up the time lost by increasing the
working hours on the follow ing days by not more than three hours, without
being required to pay the overtime rates.
(&) This increase in the hours of work shall continue until the extra time is
equal to the length o f the stoppage as regards the number o f hours and the
amount of the wages or salaries paid.
(c) In order to .avail himself o f this right the employer, in addition to having
paid in advance or continued to pay the wages or salaries corresponding to the
duration of the stoppage, must inform the workers that they are free to seek
other employment during the stoppage.
( d ) I f in the case under consideration the employer has paid wages and
salaries in advance or continues to pay them during the stoppage o f work and
keeps the workers or employees in the establishment or factory until work is
resumed, he shall forfeit the right to make up the time lost, but may avail him
self of that right on paying overtime rates for the extra time worked and
conforming in every respect to the provisions in article 8.
( e ) Any worker who does not desire to work overtime shall refund to the
employer any wages or salary which he has received for the duration of the
stoppage of work.
( f ) The workers shall not be required to make up the time lost unless ad
vance permission has been obtained from the labor inspector, to whom the
employer shall forw ard an application giving the date and cause o f the stop
page of work, the number o f hours during which work was suspended, the
changes which must be made in the schedule of working hours, and the number
and designation o f the persons to whom the overtime is to apply.
A rt . 15. In cases o f unavoidable stoppage of w ork for reasons beyond the
control of employers and workers, compensation shall not be payable for failure
to give notice.
A rt . 16. For the purpose of calculating the eight hours, actual working tim e
shall be deemed to be all time which the worker or employee is not free to dis
pose o f as he pleases but during which he is under the orders of his employer
or su p erior; the rest periods specified in article 12 shall be excluded.
A rt . 17. On obligatory rest days and during obligatory rest periods the e m
ployer shall not have the right to require the worker or employee to perform
any work, even in the form o f piecework or work by the hour.
A rt . 18. A schedule of hours of work of the workers and employees shall be
posted in a conspicuous place in every establishment covered by this l a w ; the
said schedule shall also show the hours of work of the shifts if shift work is
necessary owing to the nature of the undertaking.
Any changes in the schedule o f hours o f work caused by compulsory stop
pages o f work, the making up of lost time, etc., shall be made known in the
same way.
Where work is done in shifts, in the case o f processes which can not be inter
rupted, the employee shall be entitled to be informed on the preceding day o f the
exact time at which his shift begins and ends, and shall be entitled to claim
payment of his wages for any periods o f waiting in case this notice is omitted.
A rt . 19. The duties imposed upon the labor inspectors by this Law with re
spect to supervision, power to authorize changes in schedules o f hours o f work,
the making up of lost time, etc., shall be incumbent upon the national commis
sioners and local administrative officers in cantons and parishes in which there
is no resident labor inspector.
A rt . 20. The Ministry of Social W elfare and Labor shall have power to issue
regulations for the application o f this law to the different classes o f industries,
16
L A B O R L E G IS L A T IO N
OF E C U A D O R
establishments, etc., according to the nature o f the work carried on therein and
the distribution o f working hours required thereby.
A rt . 21. Factories and all establishments where work is carried on collectively
shall transmit to the Ministry of Social W elfare an attested copy of their
schedule o f working hours and rules o f employment not later than one month
after this law goes into effect or after the beginning of operations in the case
o f a new establishment.
Any violation of this provision shall be punished by a fine of not more than
100 sucres imposed by the said ministry. The same penalty shall be imposed if
the copies transmitted are inaccurate or the regulations have not been observed.
A rt . 22, In the event of internal disturbance, international war, disasters, o.*
crop failure rendering imminent a serious economic crisis or endangering
national safety, the President of the Republic shall have power to suspend the
operation of this law wholly or in part, and even to increase the daily working
hours as long as the said state o f affairs renders this necessary.
A rt . 23. All legal provisions and regulations contrary to the provisions of
f;his law are hereby ’repealed.
A rt . 24. The Minister of Social W elfare and Labor, etc., and the Minister o f
Police shall be responsible for the administration o f this law, which shall
become effective January 1, 1929.
Apothecary Shops, Drug Stores, and Pharmacies
RE GU LATO RY DECREE OF NOVEMBER 12, 1926
A rticle 1. Apothecary shops, drug stores, and pharmacies may remain ope’i
to the public on ordinary days from 7 a. m. to 7 p. m. only, with the exception
of those whose turn it is to remain open all night to serve the public.
A rt . 2. The observance of the Sunday rest law is declared compulsory for
all apothecary shops, drug stores, and pharmacies, with the exception of those
raking their turn at continuous service, in accordance with the laws applying
thereto.
A rt . 3. The proprietors of drug stores, apothecary shops, and pharm acies
which are on continuous duty shall, in compliance with the eight hour law ,
assign to each of their employees the rest day to which he is entitled in
accordance with the provisions of the law .
A rt . 4. The proprietors of apothecary shops, drug stores, and pharmacies
shall post in the most prominent place in their establishments the schedule of
working hours for each employee, in conformity with the eight hour law.
A rt . 5. The proprietors and employees of apothecary shops, drug stores, and
pharmacies are subject to the labor laws in so far as they do not conflict with
the present regulation. Therefore, all violations of the preceding provisions
shall be punished as prescribed in article 22 of the regulation as to the general
labor inspection service.
A rt . 6. The Minister o f Social W elfare and Labor and the Minister o f Police
shall be charged with the enforcement o f this decree.
Barber Shops
RE GU LATO RY DECREE OF NOVEMBER 12, 1926
A rticle 1. Barber shops may be open to serve the public on ordinary days
from 7 a. m. to 7 p. m .; on Saturdays and the day before national holidays,
until 10 p. m .; and shall remain closed on Sundays and civil holidays.
A rt . 2. The proprietors and employees of barber shops are subject to all
laws which apply, in so far as they do not conflict with this regulatory decree.
Therefore, any violation shall be punished in accordance with article 22 of
the regulation as to the general labor inspection service.
A rt . 3. The Minister o f Social W elfare and Labor and the Minister o f Police
shall be charged with the execution of this decree.
Em ploym ent of W o m e n and Minors
LA W OF OCTOBER 6, 1928
A rticle 1. Minors under 14 years of age are hereby prohibited from working
for others in any kind o f work.
T E X T OF L E G IS L A T IO N
17
A rt . 2. Only in exceptional cases may the labor inspector, if there is one
in the place, or if there is none, the chief o f police, authorize the work of
minors between 12 and 14 years of age, provided they can prove that they
have finished the minimum degree of school instruction required by the law,
or that they are at that time attending an elementary school.
This authorization shall be granted only on proof that it is necessary for
the minor to work in. order to provide for his own support, or that of his
parents or ascendants with whom he lives and who are unable to work, or o f
his brothers or sisters who are in the same situation.
A rt . 3. Em ployers who employ minors under 18 years of age who have not
finished their elementary education shall be required to allow them two hours
a day during working hours so that they m ay attend school.
I f there are no schools in the vicinity of the establishment, and there Are
employed therein more than 20 minors in the same situation, the employer
shall establish a school at his own expense in which the said children fthall
receive elementary instruction, and in addition shall be taught the rudiments
of the industry in which they are employed.
The Ministry of Public Education shall regulate the work of the schools
established in accordance with this provision.
A rt . 4. Parents, ascendants, guardians, and trustees, and in general all
persons responsible for the maintenance and care of minors under 12 years
of age, of either sex, shall be prohibited from employing them as domestic
servants with the intention of deriving pecuniary profit from their work.
They can do this lawfully only when they can prove that the minor is
required to work to provide for his own support and education, for which the
aforesaid persons do not have adequate means.
In such cases the employer must provide for the required education of the
domestic servant, on pain of incurring the penalties provided in the law.
If the domestic servant is over 12 but under 18 years of age, and has not
completed the minimum degree of school education, the employer shall then
be required to comply with the provisions in the first paragraph of the pre
ceding article.
A rt . 5. Minors under 16 years of age are absolutely prohibited from working
over 8 hours a day or 48 hours a week.
A rt. 6. Women, and minors under 16 years of age, are hereby prohibited
from performing night work, except in the case of domestic serv ice; by night
work is understood that defined in article 5 of the law on the maximum length
of the working day.
However, women over 18 years of age may be employed as nurses, and in
establishments such as telephone exchanges, theaters, motion-picture houses,
and other similar businesses that are operated at night.
A rt . 7. Boys under 12 years of age, or unmarried girls under 16 years of age,
are prohibited from engaging, for themselves or for others, in any occupation
carried on in the street, public squares, and other public places.
A rt . 8. It is hereby prohibited to employ women, or boys under 16 years of
age, in industries or occupations which are considered to be dangerous or
unhealthful; such industries or occupations shall be specified in a special
regulation.
The prohibition laid down in this article refers, especially, to. the following
industries:
O ) Distillation o f alcohol and the manufacture or mixing o f liquors.
(&) M anufacture of white lead, red lead, and any other poisonous coloring
m atter, as well as the handling of paints, enamels, or varnishes containing
lead or arsenic salts.
(c )
Manufacture and preparation o f explosives, inflammable or caustic sub
stances, or work on premises or at places where any o f the above substances
are manufactured or prepared, or are deposited in quantities which involve
danger of accident.
(<Z) Cutting and polishing of glass, polishing of metals with emery, and
w ork on any premises or at places in which there is a constant emission of
irritating and poisonous dust and fumes.
(e) Loading and unloading of vessels, even if it is done by means o f cranes
and winches.
( f ) Underground work and w ork in quarries.
( 9 ) W ork o f engineers and firemen.
( h ) Greasing and cleaning o f machinery in motion.
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L A B O R L E G IS L A T IO N
OF E C U A D O R
(i ) Handling o f belts, circular saws, and other dangerous appliances.
( / ) Melting o f glass and metals.
( k) Transportation of incandescent substances.
(I)
The sale o f distilled or fermented alcoholic beverages or employment 011
any premises where they are sold.
A rt . 9. N otw ithstanding the provisions in article 6 and in the preceding
article, minors between 16 and 18 years of age are also prohibited from per
form ing day or night w ork that is injurious to their m orals and to their
physical development.
It is the duty o f the labor inspector to inform the Ministry o f Social W el
fare as to what occupations and industries shall be considered in the class
referred to above, and the ministry shall be authorized to prohibit the employ
ment o f minors under 18 years of age therein.
A rt . 10. In case a woman or a minor under 16 years of age meets with an
accident or becomes ill and it is proved that it was caused by one o f the oc
cupations prohibited for such person by this law, or that the accident or illness
originated under circumstances constituting a violation of these provisions,
or when the woman or minor was in a work place in which her or his presence
was unlawful, on this fact alone, the accident or illness shall be presumed to
be due to the fault o f the employer.
A rt . 11. In every establishment employing minors under 18 years o f age, a
register shall be kept specifying their a g e s; the kind of work on which they
are employed, specifying whether it is day or night w o r k ; the number o f w ork
ing h ou rs; the wages that they receiv e; and a certificate that the minor has
completed or is completing his required education.
A copy o f this register shall be sent each month to the labor inspector, in
places in which there is a resident inspector, and to the chief o f police,
elsewhere.
Either one of these officials may demand any proof which they consider neces
sary to verify the statements in the register.
A rt . 12. It shall be prohibited to employ women in industrial or commer
cial establishments and other work places, whether urban or rural, public or
private, for a period of three weeks before and three weeks after childbirth.
They shall stop working on presentation of a medical certificate stating
that confinement w ill probably take place within three weeks.
A r t . 13. Women may not be dismissed on account o f pregnancy, and their
positions must be kept for them during the 6-week period specified in the
preceding article. In addition they shall be entitled to receive 50 per cent of
their wages during that time.
A rt . 14. Moreover, if a woman remains absent from her employment for a
longer period as a result o f illness which, according to a medical certificate, is
due to the pregnancy or childbirth and incapacitates her to perform the work,
she shall not be dismissed for this cause.
A rt . 15. Every mother, for 9 months after childbirth, may take 15 minutes
every 3 hours to nurse her child, unless the medical certificate fixes a shorter
interval.
A rt . 16. Violations of this law shall be punished by a fine o f from 50 to 500
sucres, according to the circumstances; and the fine shall be doubled in case
3f repetition.
Each person unlawfully employed or woman dismissed from her position in
violation o f the preceding provisions shall count as a separate violation. In
the latter case the proceeds o f the fine shall be immediately turned over to the
woman injured thereby.
These fines shall be imposed only by the Ministry of Social W elfare and Labor,
and the provision in section 3, of article 11, of the law regarding maximum
working hours shall be observed in the imposition of said penalty.
The police shall cooperate with the labor inspector and other special au
thorities in the verification o f these violations.
A rt . 17. All legal provisions which are contrary to this law are hereby
repealed.
A rt . 18. The Minister of Social W elfare and Labor, the Minister o f Public
Education, and the Minister of Police shall have charge o f the execution o f this
law, which shall become effective January 1, 1929.
T E X T OF L E G IS L A T IO N
19
Individual Labor Contracts
LA W
OF OCTOBER 6, 1928
A r t i c le ] 1. F or the purposes o f this law, by “ employer ” shall be understood
any individual or legal entity, including the State, a municipality or other insti
tution or organization o f a public character, who or which undertakes the
performance o f any work, the operation o f an industry, or the direction or
management o f any undertaking, either with his or its own capital or as a
contractor, and engages under contract the services of employees, clerks, or
workers, either individually or collectively.
A rt . 2. For the purposes o f this law, by “ contract ” shall be understood any
employment relation which is established between the employer who offers the
employment and a worker, clerk, or employee who undertakes to perform work
or to render services in return for specified remuneration.
A rt. 3. The labor contract may be express or implied, oral or in writing.
It is express when the employer and the employee enter into an agreement as
regards the conditions o f employment, either orally or in writing.
In the absence o f an agreement, any employment reWtion between an em
ployer and an employee shall be considered an implied labor contract.
A r t. 4. For legal purposes every labor contract shall be presumed to have
been executed in conform ity w ith the provisions of the law, and allegations rela
tive thereto, made in order to evade the obligations thus created, shall not be
&dmissible.
A rt . 5. The terms “ labor contract,” “ employer,” “ domestic service,” “ home
work,” and any others expressly defined by this law shall be understood in their
legal meaning in all other laws and provisions regarding labor.
A rt . 6. The provisions of this law shall not apply to agricultural work nor
to domestic service. By “ domestic service ” shall be understood services ren
dered in return for daily or other w^ages, or remuneration of any other kind, or
without remuneration, and which are contracted for, not by an employer, but by
the head of a household which is not carried on for purposes of gain, the
domestic servant working in a private house or dwelling in the exclusive service
of the contractor, his family, or his dependents, whether the servant is lodged
in the household of his master or not.
Similarly, this law shall not apply to home w ork ; by “ home w o r k ” (trabajo
a domicilio) shall be understood work in which only members of the same
fam ily are engaged under the direction of one o f them.
A rt. 7. Labor contracts concerning work which requires special technical or
professional knowledge, contracts for a definite piece of work or for specified
tasks, exceeding 1,000 sucres in value, or contracts providing for work binding
for one year or more, must be executed in writing.
A rt. 8. The maximum duration of a labor contract shall be one year if the
contract is oral, and not more than three years if it is executed in writing,
provided that on the expiration o f the said time the contract may be renewed
and shall be understood to be tacitly renewed if the worker or employee con
tinues to render his services with the knowledge of the employer.
A rt . 9. Labor contracts which under this law must be m ade in w riting and
those which are voluntarily made in w riting shall b'e executed before the labor
commissioner, in localities in which there is such an official, and before the
chief of police in other localities.
Such contracts shall be exempt from the payment of all taxes and shall be
drawn up in triplicate on unstamped pa per: one copy shall be filed in the office
where the contract is executed, and the other two copies shall be given to the
employer and the employee, respectively.
A rt . 10. Every written contract shall contain the follow ing indispensable
requisites:
1. The nature o f the employment, work, or services undertaken by the
employee and the manner of performance.
2. The agreed remuneration and the method o f payment.
3. The duration o f the contract.
4. The place where the work is to be performed.
A rt . 11. W ithout prejudice to the provisions in the follow ing article regarding
the payment of wages, every labor contract shall specify the time in days if
the work is not permanent and in weeks, months, or years in the case o f per
manent and continuous w o r k ; stipulation for work by the hour shall be
absolutely prohibited.
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L A B O R L E G IS L A T IO N
OF E C U A D O R
A rt. 12. No agreement providing for the payment of wages or salary at
intervals of more than a week shall be executed either orally or in writing.
I f the employment is for work by the job or for work which can be delivered in
portions, the employee shall be entitled to deliver the work done each week
and to receive payment for it.
In cases in which the contract is for a piece o f work which can not be
delivered until it is complete, an advance equal to not less than one-third of the
total remuneration, together with the sum necessary for the purchase of tools
and materials, shall be agreed upon. In this case the employer shall be entitled
to require the employee to give sufficient security.
This provision shall not apply to the remuneration of employees and clerks
whose salaries may be paid at other intervals.
A rt . 13. The labor contract shall term inate for the usual reasons for the
expiration of contracts, and also when the tim e agreed upon has expired or the
work has been concluded, or on account of force m ajeure, and in particular on
the death of the worker or employee.
In the event of the death of the employer, his heirs shall be bound to carry
out the contract under the conditions stipulated therein.
A rt. 14. The fact tteat a company or commercial establishment, an industrial
enterprise, or any other employer has to suspend business shall not be considered
a case of force m a jeu re; in such circumstances the workers employed shall be
paid their wages according to the provisions of the contract, if a contract had
been entered, into, or if not, in conformity with the usual rules o f practice.
Sums due to employees on account o f unpaid wTages shall in every case be con
sidered a privileged credit for the purpose of payment.
This shall also apply in the event o f the bankruptcy o f the employer.
I f the ownership of an enterprise changes, the former owner shall not thereby
be exempted from the obligations imposed upon him by the labor contracts into
which he entered, unless it has been expressly stipulated that all the obligations
undertaken by the form er owner shall be binding upon the new owner.
A rt . 15. A w orker or employee shall be entitled to term inate the contract
before the expiration of the time agreed upon for the follow ing re a so n s:
(1) Dishonest or immoral conduct on the part of the employer.
(2) Gross insults or acts o f violence toward the worker or employee.
(3) Serious failure on the part o f the employer to discharge his obligations
under the contract.
(4) Failure on the part o f the employer to comply with the provisions o f the
law respecting the prevention of industrial accidents.
In all such cases the worker or employee shall also be entitled to compensa
tion o f not exceeding 50 per cent of the w^ages or salary due for the unexpired
period o f the contract, such compensation to be fixed by the competent judge
in his discretion.
A rt . 16. The employer, on the other hand, shall be entitled to dismiss a
worker or employee before the expiration of the time agreed upon and without
payment o f any compensation, in any of the follow ing ca ses:
(1) In such cases as specified under Nos. 1, 2, and 3 o f the preceding article.
(2) I f the w7orker or employee commits acts o f insubordination during the
employment, or if he incites other employees to commit such acts.
(3) I f the worker or employee absents himself from his work for more than
three days without sufficient reason.
A rt. 17. Both the worker or employee and the employer shall have the right
to terminate the contract voluntarily before the expiration o f the time agreed
upon, provided the employer shall pay the other party compensation equal to
one month’s wages if the period of the contract does not exceed one year, and two
months’ wages if the period agreed upon was more than one year. The worker
or employee shall pay half the above compensation in such cases.
A rt . 18. All persons capable under the civil law of entering into contracts shall
have the right to enter into labor contracts, without prejudice to the follow ing
ru le s:
(1) Males over the age of 18 years may conclude contracts freely, whether
or not they are under paternal authority, and shall be considered as free agents
for the purposes of the contract.
(2) In order to enter into a contract, persons under the age of 18 years but
over 14 years shall require the express permission o f their parents or, in the
absence of parents, their ascendants or the persons who are responsible for
their maintenance and care, or their guardian if they are wards. In the absence
o f any such persons, the authorization of the labor inspector where there is
T E X T OF L E G IS L A T IO N
21
such an official, or of the chief of police in other localities, shall be required
In the latter case such young persons shall receive their wages directly and
shall be entitled to dispose freely thereof.
(3)
A married woman who is actually or legally separated from her husband
shall be considered to have been given authority by the Ministry o f Justice for
all purposes in connection with the contract, including the right to receive her
remuneration.
A rt. 19. Oral contracts shall not be valid if the terms thereof are not agreed
upon before the official appointed under this law to approve written contracts.
Notes of the agreement shall be entered in a special register, and a copy thereof
shall be given to either o f the parties at any time on application. Such copy
shall be the only evidence admissible in an action for the enforcement of the
obligation.
In other respects oral contracts shall be governed by the provisions with
respect to written contracts.
A rt . 20. Contracts which are considered under the law to have been concluded
by implication shall also be governed by these provisions in so far as they are
applicable.
In case of a dispute between the employer and the worker respecting the
wages stipulated or the kind o f work which the worker is to perform, the
decision in both cases shall be based on the wages received and the work or
service performed during the preceding month.
I f this rule is not sufficient to determine, in case of dispute, any of the
conditions of employment tacitly agreed upon, the custom of the locality in
question for the same kind o f work shall be taken as the criterion.
Even if the duration of the work is not fixed in this kind of contract, neither
the employer, nor the worker, nor employee shall have the right to terminate the
contract inopportunely, being bound on this point by the provisions o f the law
with respect to notice to terminate the contract ( ley de desah ud o) .
A rt . 21. Wages not exceeding 100 sucres a month shall not be liable to
attachment, except for maintenance allowances due under the law.
Wages exceeding 100 sucres a month may be attached for other legal reasons,
but only in the follow ing proportion:
If the wage is not less than 101 sucres nor more than 150 sucres a month,
not more than 5 per cent of the monthly amount.
I f the wage is not less than 151 sucres nor more than 200 sucres a month,
not more than 10 per cent o f the monthly amount.
I f the wage is not less than 201 sucres nor more than 300 sucres a month,
not more than 15 per cent o f the monthly amount.
I f the wage is more than 300 sucres a month, not more than 20 per cent of
the monthly amount.
A rt . 22. Legal actions arising out of labor contracts must be brought w ithin
one year from the term ination of the contract.
A rt . 23. A ll legal provisions contrary to the provisions o f this law are hereby
repealed.
A rt . 24. The Minister of Social W elfare and Labor is charged with the
administration of this law, which shall become effective January 1, 1929.
Notice Required for Termination of Em ploym ent Contracts
LA W OF OCTOBER 6, 1928
A rticle 1. This law shall apply to all contracts entered into between an
employer and a worker, employee, or clerk.
A rt . 2. I f a time for the duration of the work has not been fixed neither
party may terminate it without giving notice to the other party in writing
at least one month in advance when given by the employer, and 15 days in
advance when given by the worker or employee.
A rt . 3. The employer who dismisses a worker or employee prem aturely, that
is, without giving the notice stipulated in the preceding article, shall be required
to pay him compensation equivalent to one m onth’s pay computed on the basis
of the daily wage.
A rt . 4. The worker or employee who, without sufficient reason, and without
providing a substitute approved by the employer, leaves his work without
giving the 15 days’ notice, shall pay the employer a sum equivalent to 15 days’
w ages; and if he can not do so, he shall be required by the proper authority
to continue his work for an equivalent period o f time.
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L A B O R L E G IS L A T IO N
OF E C U A D O R
A rt . 5. I f the leaving of the worker or employee prem aturely, causes loss to
the employer, because the work affected is urgent, the worker or employee
shall be required to m ake good the loss caused by the stoppage of his work,
unless he has sufficient cause for leaving.
A rt . 6. The employer or the worker or employee may terminate the work at
any time, on payment to the other party of the sums mentioned in articles
3 and 4.
A rt . 7. Notice of dismissal shall not be necessary in the follow ing ca ses:
( a) In the case of contracts wThich specify a fixed period for the duration
o f the work.
(&) If the services of the worker have been contracted for a period less
than one month.
(c ) If the worker deserts or disappears; in which case he shall be subject
to the penalties stipulated in articles 4 and 5.
( d) In cases of forced stoppage of work due to force majeure, a fortuitous
event, or any other cause beyond the control of the employers or workers.
A rt . 8. Sim ilarly, notice shall not be compulsory for a worker or employee
who leaves his employment for any of the just causes specified in article 14
of the law on individual labor co n tracts; in which case he shall be entitled,
in addition, to compensation which shall be fixed in conform ity w ith the pro
visions of this law as if the case wTere one of premature dism issal.
A rt . 9. The employer, on his part, shall not be required to give 30 d ay s’
notice in case he has to dism iss the worker or employee for any of the causes
specified in article 16 of the law cited in the preceding p ro visio n ; and under
such circumstances the worker shall lose all right to compensation.
A r t . 10. In the case of piecework or work by the job, if the employer
does not fulfill his contract, or breaks it after it has been begun, he shall pay
the worker for that part of the work that has been performed and in addition
the percentage fixed by the authorities in their discretion as compensation.
The cases specified in paragraphs (c ) and ( d) of article 7, as well as the
case mentioned in the preceding article, shall be excepted from this provision.
A rt . 11. W hen , under similar circumstances, the worker refuses to perform
or complete the work, he m ay be compelled by the authorities to complete it
or to compensate the employer, without prejudice to the provision in section
( d ) of article 7 and in article 8.
A rt . 12. W hen by virtue of the contract the worker has had to move from
his place of residence to another locality, he shall have the right to collect
from the employer the am ount of money necessary for the trip there and return.
A rt . 13. The employer who expects to liquidate definitively or to discontinue
his business shall give one m onth’s notice to all his workers or employees,
failin g which he shall be required to pay the respective compensation.
A rt . 14. The provisions of this law do not apply to work which is not of
a continuous nature or occasional work, provided that in the form er case its
duration is specified and in the latter case the work is necessitated by unex
pected or urgent causes.
A r t . 15. The compensation provided for in article 3 shall be modified as
follow s in cases of permanent w o rk :
(a )
The worker or employee who has worked longer than a year shall
be entitled to compensation equivalent to two months’ wages based on the
last pay received.
(&) The worker or employee who has worked longer than two years shall
be entitled to be compensated with an amount equivalent to one month’s pay
for each year he has worked.
Cases in which the worker or employee stops working voluntarily or through
his own fault, shall be excepted from this provision.
A rt . 16. The competent authorities for the enforcement of this law shall
have the power to impose on the violator thereof, in addition to the penalties
established in the preceding articles, a fine up to 50 sucres or imprisonment
from one to seven days, in case of repetition or if he is duly proved to have
acted maliciously. There shall be no appeal from this decision except to the
M inister o f Social W elfare and Labor who shall decide it on the merits of the
case.
A rt . 17. The authorities competent to try the cases referred to in this law
shall give notice of each judgm ent and decision to the labor inspector of the
respective district.
1
The inspectors shall prepare statistical tables which they shall send monthly
to the Ministry of Social W elfare, or shall report at the same intervals the
T E X T OF L E G IS L A T IO N
23
total absence of judgments in such cases, under penalty of a fine of 50 sucres,
that shall be imposed summarily by the said ministry.
A rt . 18. A ll legal provisions contrary to the provisions of this law are hereby
repealed.
A rt . 19. The Minister of
Social W elfare and Labor and the Minister o f
Police shall have charge o f the enforcement of this law, which shall become
effective the 1st of January, 1929.
Procedure in Actions at Law Relating to Labor
LAW OF OCTOBER 6, 1928
A rticle 1. Disputes which arise in connection with the administration of the
labor laws, or respecting the carrying out or cancellation of contracts of
employment or over the payment of the legal compensation due on account
o f industrial accidents and, in general, any action at law which has any relation
to labor, shall henceforth be settled by the authorities specified in this law and
in conformity with the procedure specified herein.
A rt. 2. The sole authority competent to hear and settle disputes which
arise between employers and workers or employees for any of the causes
specified in the preceding article shall be the labor commissioners in localities
where there are such officials, and in other localities the superior police
authority, which shall not have the right to delegate its powers in this
connection.
I f the labor commissioner is unable to act for any reason, the chief police
authority for the locality shall act in his absence.
The executive shall be empowered to appoint labor commissioners in the
districts where the circumstances require it, for which provision shall be made
in the State budget.
A rt. 3. An employer or worker or employee who desires to claim any right
shall present himself before the competent authority, in compliance with the
preceding section ; his complaint may be made in writing or orally. In the
latter case the judge hearing the case shall record it in writing. Documents in
cases of this kind shall be drawn up on unstamped paper.
A rt . 4. W h en an application of the kind specified in article 1 is submitted,
the judge shall summon the defendant to appear at once.
The summons shall be by formal notice in writing, which may be repeated
as often as three times if necessary, at intervals o f 24 h ou rs; it shall be
served on the defendant by the clerk of the competent authority or by a
police officer. I f the defendant is not found at his residence, the notice shall
be left with any member of his fam ily or a servant, or in default of such persons
shall be affixed by the official concerned to the door o f the house or dwelling
of the defendant.
The notice shall specify the subject of the complaint, but it shall not be
necessary to cite the relevant legal provisions.
A rt . 5. I f the defendant fails to appear within 48 hours after service of the
summons or to furnish a sufficient reason for such failure to appear, the judge
at the request of the other party or ex officio shall declare the defendant in
default and shall pronounce his decision.
A rt . 6. I f facts which require proof are alleged in the complaint or in the
answer thereto, a peremptory time lim it of three days shall be allowed fo r
the purpose of presenting evidence, on the expiration of which the decision
^hall be pronounced wTithin 48 hours.
A rt. 7. Settlement of the compensation due by an employer to a worker or
employee or by the latter to an employer on account of the work shall be
made in a summary oral proceding before the judge presiding in the case or
before the officials specified in article 2, but the time limit for presenting
evidence shall not in any case exceed three days.
A rt . 8. In cases covered by this law the judge may disallow forthwith
any malicious question made for the purpose o f delaying the proceedings or
causing prejudice to the other p a rty ; he may even impose a fine not exceeding
50 sucres on this ground.
A rt . 9. In actions arising out of the work the report o f the labor inspector
shall be an essential part of the proceedings. In localities where no labor
inspector is resident, the competent authority shall appoint a labor inspector
ad hoc, preference being given in making the appointment to an employee
of known good character.
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L A B O R L E G IS L A T IO N
OF E C U A D O R
A rt . 10. I f the decision requires one of the parties to pay a sum o f not more
than 500 sucres, there shall be no other legal remedy than a complaint ( qu eja),
which shall be heard by one o f the judges ( jueces letrados) in the Province
concerned.
A rt . 11. I f the decision requires one of the parties to pay a sum exceeding
500 sucres, the losing party may appeal to the respective superior court, but
only for a new hearing. This court shall then decide on its m erits; provided,
that if it sees fit it may order the production o f such other evidence as may be
necessary for such decision.
If the decision appealed from is affirmed, a fine o f not less than 50 nor more
than 100 sucres shall be imposed on the appellant, and shall be collected and
invested in conform ity with the provision of article 11 o f the law on the
maximum duration of the working day.
A rt . 12. The defenders o f the poor shall be required to act for any employees
who apply for their assistance. For this purpose employees and their heirs
shall be entitled to sue in forma pauperis.
A rt . 13. All laws and provisions contrary to the provisions o f this law are
hereby repealed.
A rt . 14. The Minister o f Social W elfare and Labor and the Minister of Police
shall be responsible for the administration of this law, which shall come into
operation on January 1, 1929.
Retirement Annuities and Pensions
Civil Employees
LAW OF MARCH 8, 1928
P art 1. Institution of the fund
A r t i c l e 1. In the capital of the Republic there shall be created a fund for
civil retirement annuities and pensions, military retirement annuities and
pensions, savings, and mutual funeral benefits, a credit institution having
juridical personality, which on being organized in accordance with this law
shall be named “ Retirement fu n d ” (Caja de Pensiones) and shall have fo r its
o b je c t:
(1) To attend to the payment of retirement annuities to public employees
who reach the retirement age or who become incapacitated for work by reason
o f the same.
(2) To establish a civil pension fund for the families of public employees who
die while serving in their positions or while receiving a retirement annuity.
(3) To pay when due the m ilitary retirement annuities and pensions.
(4) To receive the funds that the employees and other contributors deposit
in order to form a productive capital of savings, issuing therefor registered
bonds to the contributors.
(5) To collect contributions for the mutual funeral funds, in order to
replenish with them the funds intended for meeting emergencies.
(6) To make loans to the employees and to the public, in the manner deter
mined by the administrative council and in accordance with the by-laws.
Loans made to Government employees that are not paid when due, and whose
payment is approved by the party interested, or ordered by the judge, shall be
discharged by the respective disbursing officer, who shall retain and deliver to
the fund, one-half o f the salary which the debtor receives, but only upon notice
by the manager to his official superior, who shall notify the disbursing officer
thereof.
I f the debtor employee dies before satisfying the credit in full or in part, the
fund shall collect the same by taking 25 per cent o f the pension, if the employee
was entitled to o n e ; otherwise it shall be paid with the capital which the
deceased had in the savings fund or the funeral fund, without prejudice to the
right to bring an action for the debt against other property of the estate.
A rt . 2, The follow ing persons are excepted from the provisions o f this law
concerning retirement annuities and pensions:
(a )
The President o f the Republic and the members o f his cabinet, who may
however take advantage of this law on the basis of the length o f serv ice; and
for this purpose a 5 per cent deduction shall be made from their salaries or
from the income which they specify in accordance with article 3.
T E X T OF L E G IS L A T IO N
25
(b ) Men in the army, navy, and air service, who shall be governed by the
m ilitary laws pertaining thereto.
(c ) Foreigners who work for the State under contract, unless they wish to
take advantage of the benefits granted by this law.
A rt . 3. All persons may receive the benefits granted by this law as if they
we’r e Government employees, except the mutual funeral fund, which shall be
understood to be only for Government employees, by merely fixing a taxable
annual income to serve as a basis for the computation of the deductions for
the retirement and savings funds.
A rt . 4. A Government employee who ceases working for the Government may
prevent interruption of the time [necessary] for the retirement annuity by con
tinuing to pay the contributions established by this law, on the basis o f the
percentage corresponding to the last salary received.
P art 2.— Resources of the fund
A rt . 5. The resources of the fund, which shall be assigned to the various
purposes in the quantities and manner established by this law, a r e :
(a) The monthly contributions that Government employees and other persons
covered by the benefits of this law pay for retirement annuities, savings, and
pensions.
(b) The product o f a 5 per cent deduction on all retirement annuities.
(c ) The interest or profits of the capital of the fund.
(d) Fifty per cent of the increase of the first month’s salary of an employee
when given an increase in salary.
(e) The contributions paid by the persons named in article 3.
if ) The deductions and donations made in conformity with the military
retirement and pension laws.
(.g ) Any donations that the national treasury, municipalities, or private per
sons may make to the fund.
A rt . 6. The amounts deposited in the Bank o f Loans (Banco de Prestamos)
as retirement funds and the product of the 5 per cent created by this law for
the same purpose shall form the capital o f the fund in the civil retirement and
pension division, which capital shall not be limited to a definite amount, since
it will be increased every month and indefinitely with the 5 per cent con
tributions.
A rt . 7. The product of the 5 per cent assigned by the m ilitary law s for
retirement annuities and pensions shall form the capital of the fund in the
m ilitary retirement and pension division, which shall be increased indefinitely
by the contributions provided for by the said laws.
A rt . 8. The product of the 5 per cent deductions intended for the savings
accounts and the profits, which shall be compounded in favor of each con
tributor, shall form the capital of the fund in the savings department. Such
capital can not be limited to a certain sum, since it will be increased monthly
and indefinitely by the 5 per cent contributions and the profits that are not
withdrawn.
A rt . 9. The fund shall give to those who pay the 5 per cent for civil-retirement annuities and pensions, military-retirement annuities and pensions, savings
and funeral funds, a receipt for the amount paid in monthly or every 15 days
and shall keep a personal account for each contributor to the savings fund.
A rt . 10. The fund accumulated since 1923 from deductions made from the
salaries of public-school employees, and which is deposited in the Bank of Loans
( Banco de Prestam os) , shall immediately be turned over to the fund after this
law becomes effective, to constitute the first base of operations.
A rt . 11. The profits earned by the capital o f each of the divisions established
by articles 6, 7, and 8 shall belong to the respective division for the purposes
provided in this and the m ilitary laws.
P art 3.— Retirem ent annuities
A rt . 12. The retirement annuity is the monthly income for life that shall be
I aid to employees who have rendered services in the public administration,
national or municipal.
A rt . 13. The retirement annuity shall be granted commencing with the year
1933, in accordance with this law, and provided the conditions required by
the follow ing article have been satisfied; and this shall be so even when, after
this law has become operative, there are employees who are entitled to the
annuity under the provisions of this part.
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L A B O R L E G IS L A T IO N
OP E C U A D O R
Employees who are compelled to retire from the administration because they
have reached the age limit fixed in article 22, and those who are totally or par
tially incapacitated in consequence o f the work, are excepted from this rule,
and may receive annuities before the date indicated in the preceding paragraph.
A rt . 14. The follow ing are the requisites for the receipt of the annuity:
(1 ) That the employee has paid 5 per cent o f the annual salary received
for his work from October 1, 1923, or from the date on which he entered the
service, if this was subsequent to that date.
(2) That the employee has rendered services for 10, 25, or 30 years or
longer, according to the cases specified in this law.
The years shall be computed by the number of contributions, 12 or 24 de
ductions being equal to one year, according to whether the 5 per cent is de
ducted monthly or semimonthly. This provision does not refer to the length
of service prior to October 1, 1923, which shall be computed by the number of
years.
A rt . 15. Those who publish books o f recognized scientific benefit shall be
entitled to an allowance, for a single time, for the purpose o f the retirement
annuity of from one to three years, according to the merits and importance
of the book.
The allowance shall be granted by the President of the Republic upon a
favorable opinion by the commission of experts who examine the work, which
commission shall be appointed by the Minister o f Public Education.
A rt . 16. Employees wiio, in the perform ance of their
quence thereof, contract a disease which incapacitates
shall be entitled to retirement, provided they have been
years.
A rt . 17. When the retirement annuity must be granted
w ork or as a conse
them fo r the w ork
employed at least 10
because o f disability
for work, the interested party must submit to a physical examination by the
board of physicians appointed by the administrative council.
A rt . 18. In case of partial disability, the fund shall grant a retirement
annuity of from 15 to 30 per cent o f that for total disability, according to
the circumstances.
A rt . 19. In case o f disability, either partial or total, the annuity shall be
granted only for a fixed period of time, being renewed periodically if the
disability continues.
A rt . 20. The administrative council shall grant the annuity after examining
the certificates proving that the petitioner has fulfilled the requisites de
manded by this law, such certificates to be specified in the respective by-laws.
A rt . 21. The annuity shall entitle the beneficiary to the follow ing in com e:
I f the employee has served 30 years, he shall receive the fu ll annuity re
gardless o f his age at the time of retirement.
The employee who has served 25 years and is over 60 years of age shall
receive the annuity in fu ll.
Employees under 60 years o f age who have served 25 years shall receive
80 per cent of the annuity, but if said employees continue working until they
complete the limit o f 30 years they shall receive the fu ll annuity thereafter.
An employee who retires under the terms o f article 16 shall receive an in
come not exceeding 60 per cent nor less than 20 per cent o f his fu ll annuity,
graduated at the discretion o f the administrative council, according to the
degree of incapacity and the number of years of service.
A rt . 22. A Government employee who is 65 years of age w ill be compulsorily
retired from the service, being entitled to an annuity regulated in the fo l
lowing m anner: Twenty per cent when he has served less than 15 and more than
10 y e a rs; 50 per cent when he has served more than 15 and less than 20 y e a rs;
60 per cent when he has served more than 20 and less than 25 y e a rs; when
the time o f service is 25 years or over, the provisions in paragraphs 1 and
2 of the preceding article shall apply.
A rt . 23. Government officials and employees who have reached the age
lim it necessary for retirement may continue in their offices until they are
70 years o f age, provided the interested party solicits this privilege and it is
approved by the President o f the Republic, the Supreme Court, or the par
ticular municipal council, according to whether officials or employees of the
political, judicial, or municipal administration are involved.
The decision shall take into consideration the health and ability o f the
petitioner for the work, but when the employee reaches the age o f 70 years he
can not continue in the service.
T E X T OF L E G IS L A T IO N
27
A rt . 24. Retired employees have no right to receive any part of the an
nuity if they are receiving a salary from another government p osition ; and
the obligations o f the fund shall be suspended for the duration of the new
employment.
A rt . 25. The annuity shall be a sum equal to the average salary the em
ployee received during the last five years of his employment.
A rt . 26. The contribution required of the Government employee for the
retirement annuity shall be deducted monthly or semimonthly from his salary
by the disbursing officer at the time o f paying the salaries.
A rt . 27. Within eight days at the most after the salaries are paid and the
deductions made, the disbursing officers shall deposit the product of the 5 per
cent in the retirement fund. In case this is not done, interest at the rate of 1
per cent per month w ill be charged for the delay.
A rt . 28. The persons mentioned in article 3 shall deposit monthly 5 per cent
of their declared income, which shall be taken as the base for the retirement
annuity. The said income may be increased or decreased, in which case the
retirement annuity shall be based on the average thereof.
A rt . 29. Employees who have rendered services to the national or municipal
public administration before this law becomes effective shall have such time
taken into consideration for the purpose o f the retirement annuity, provided
they deposit in the fund the amount of 5 per cent of the salaries they have
received since October 1, 1923, or from the date on which they started to work,
if this occurred after that date.
The amount of the 5 per cent referred to in this article, as settled by the
administrative council, may be paid in partial payments over a period o f time
not to exceed five years from the date when this law becomes effective.
When the period o f time granted for the payment of the said 5 per cent
expires, no more payments on that account shall be received, and the employees
who have not made such payments shall lose the right to have their previous
services taken into consideration.
A rt. 30. When a person has rendered services both in the civil and military
administrations he shall be granted the retirement annuity, all the time being
computed under this or the m ilitary law according to whether he has spent the
greatest part of his time in the service of the military or civil administration.
A rt . 31. A member of the m ilitary service who, while receiving the retirement
annuity, enters the service of the civil adm inistration, w ithout prejudice to the
provisions of the m ilitary law7s as to receiving salary and annuity, shall be
required to contribute 5 per cent of the salary that he receives in the civil
employment, and shall have the right to include that time in computing his years
of service, so as to increase his annuity one-thirtieth part for each year, on the
average income for that position for five years.
The amount of the increase in the annuity shall be applied to the retirement
funds.
A rt . 32. If an employee does not complete the number o f years required for
retirement because he has been discharged or for any other circumstance, he
shall be entitled to the return of all the money he has paid into the fund by
reason of the 5 per cent deductions for the retirement annuity, provided he has
been paying into the fund for three years or more.
The reimbursement shall be settled and ordered paid by the administrative
council immediately upon application of the interested party.
The same procedure shall be follow ed in the case o f an employee w7ho should
be retired because of disability for the work but who has not completed the
required 10 years.
The persons designated in article 3 shall not receive the benefit granted by
this article unless they have contributed to the fund for at least five years.
A rt . 33. If the employee who has taken advantage of the provision in the
preceding article later reenters the service of the public administration, national
or municipal, he shall return to the fund the money he has received if he
desires that his former services be counted in computing the tim e; otherwise
the day on which he begins making payments o f 5 per cent o f his salary in his
new position shall be considered as the first day of his service.
P art 4 .— Pensions
A rt . 34. A civil pension is the m onthly income for life which the heirs of an
employee in the service, who dies under the conditions established by this law,
shall receive.
28
L A B O R L E G IS L A T IO N
OE E C U A D O R
A rt. 35. The heirs of an employee who died while receiving a retirement
annuity shall be entitled to the pension, provided the employee made the 5 per
cent contributions from the date specified in paragraph (1) of article 14, and
that such payments were continued for at least 10 years.
A r t . 86. The requisites for receiving the pension a r e :
(1) The employee must have died under circumstances which would have
entitled him to the retirement annuity under the provisions of the preceding
part.
(2) The employee must have contributed to the fund for at least 10 years.
A rt. 37. The pensions shall be regulated in the follow ing m anner:
The heirs of a deceased employee who was retired shall receive an income
not exceeding 60 per cent nor less than 20 per cent of the retirement annuity.
The heirs of an employee who dies in the service shall receive an income of
not less than 20 per cent nor more than 80 per cent of the average salary re
ceived by said employee during the last five years, the amount being regulated
according to the number o f years of service.
A rt . 38. The pension shall be due from the time o f death o f the employee,
and only those persons specified below shall be entitled thereto, in the order
indicated.
A rt . 39. The legitimate descendants of the deceased, his legitimate ascend
ants, his natural children, his illegitimate children, his legitimate sisters,
and the widow are entitled to the pension.
A rt . 40. The descendants receive the pension by personal right or by right
o f representation in accordance with the rules of the Civil Code.
A rt . 41. The legitimate children exclude all others named tor the pension,
without prejudice to the portion belonging to the widow, which shall be equal
to the share of a child.
If one of those who are receiving a pension dies, his share shall be added
to that o f the survivors.
A rt . 42. I f the deceased dies without leaving legitimate issue, his legitimate
ascendants of the nearest degree, his widow, and his natural children shall
receive the pension. In this case, 50 per cent o f the pension goes to the w id o w ;
25 per cent to the legitimate ascendants; and 25 per cent to the natural
children.
I f there is no widow or no natural children, the pension shall be divided
into two parts, one for the legitimate ascendants and the other for the natural
children or the widow.
I f there is neither widow nor natural children, all the pension shall go to
the legitimate ascendants.
I f there is only one ascendant o f the nearest degree, he shall receive all
the pension, or all the portion due the ascendants.
In the absence o f legitimate ascendants, or natural or illegitimate children,
all the pension shall be granted to the widow.
A rt . 43. If the deceased left no legitimate or natural children, his illegiti
mate children shall receive the portion of the pension assigned to the children,
with the persons indicated in article 43.
I f the deceased left only illegitimate children, and neither ascendants nor
w idow survive, all the pension shall go to the illegitimate children.
In order that the illegitimate children may receive the pension it shall be
necessary that the status of the illegitimate child be stated in a legal docu
ment or in any other manner provided by the Civil Code.
A rt . 44. I f the deceased left neither descendants, ascendants, nor spouse,
the pension shall be assigned to the legitimate sisters c f the deceased, and
on the death of any one her share shall be added to that o f the others but
not to exceed 20 per cent.
A rt . 45. The distribut'on established in the preceding provisions can not
be changed by testamentary act nor in any other manner.
A rt . 46. Pensions shall be granted from the year 1933, notwithstanding any
right acquired before such date, and in the same manner as stated in article
33, part 3, for retirement annuities.
A rt . 47. The follow ing shall not continue to receive the pension nor be
entitled to i t :
(1) The son who attains the age of 21 years, or who before that age is
receiving a salary from the Government, unless he is permanently incapaci
tated for work and unable to support h im self;
(2) The widow who was legally separated from her deceased husband be
cause o f some fault o f her o w n ;
T E X T OF L E G IS L A T IO N
29
(3) The widow, daughters, and sisters who m arry; and
(4) All those who are unworthy to be the successors of the deceased, ac
cording to the Civil Code.
A rt . 48. A ll pensions that are not paid or that are extinguished shall remain
in the fund.
A rt . 49. The right of accrual [o f a pension of another] shall take effect only
in case of death.
A rt . 50. The right to receive a pension can not be transferred by an act
inter vivos or by succession in case o f death.
A rt . 51. No person shall receive two or more pensions.
The one eligible
thereto shall choose the one he desires.
A rt . 52. T he pension shall be granted by the adm inistrative council in the
same manner as the retirement annuity.
A rt . 53. The heirs of an employee who dies before completing the number
o f years o f service required for the pension shall be entitled to be reimbursed
for all the money which he has contributed to the fund, on the same terms
as provided in paragraph 1, article 32.
P art 5.— Savings
A rt . 54. Government employees in actual service at the time this law becomes
effective may voluntarily open a savings account by contributing to the fund
the monthly percentage which they desire.
This contribution shall be compulsory for employees who enter the Govern
ment service fo r the first tim e; they shall contribute 5 per cent o f their salaries
monthly.
A rt . 55. The 5 per cent referred to in the preceding article shall be deducted
monthly or semimonthly by the disbursing officers, who shall proceed in the
manner prescribed in article 26, and shall send to the fund with the contribu
tions a list of the employees, stating the amount deducted from each one of
them.
A rt. 56. The contributions received by the fund as savings deposits shall be
credited to the personal account of each contributor, and shall be invested in
the operations authorized by this law in order to obtain the profits resulting
therefrom.
A rt . 57. Registered bonds o f 100 sucres each shall be issued for the value of
the savings fu n d s; said bonds shall be issued and delivered every six months
to the contributing employees, the number going to each one depending on the
amount of the deposits during the 6-month period.
I f in the account of an employee, when what is prescribed in the preceding
paragraph is done, there remains a balance which is not enough to cover the
value o f another bond, it shall be carried as a first dividend on the following
6-month period.
A rt . 58. The bonds issued for the savings fund are personal, and for that rea
son shall not be transferable by acts inter vivos, except to the fund, which alone
can acquire th em ; nor shall they be attached or sold at public sale except in
case of a debt to the fund.
A rt . 59. T he contributors to the savings fund m ay w ithdraw their deposits
only in the follow ing manner and c a s e s :
(a ) F ifty per cent of the funds deposited in case o f proven necessity; and
50 per cent o f the new contributions may be withdrawn, provided that in be
tween they have deposited a minimum of 12 contributions.
(&) They may withdraw the whole amount of their contributions when they
leave the Government employ.
(c ) They may also withdraw their entire funds when they show proof that
they are to be invested in rural or urban real property or in any other profitable
investment.
(d) In case of the death o f the contributor, his heirs may withdraw the
contribution.
The interest on the savings fund shall be compounded periodically until the
day on which the capital is withdrawn, in accordance with this article, and
shall be paid together with the same.
A rt. 60. For the purpose of succession in case of death, the savings-fund
bonds shall form a part of the estate of the deceased, and the heirs, at their
discretion, m ay keep them to receive the interest or sell them to the fund, which
alone can buy said bonds, for their nominal value.
30
L A B O R L E G IS L A T IO N
OF E C U A D O R
A rt . 61. The bonds bought by the fund in conform ity with the provisions
of the preceding article shall be transferred in the first semiannual period in
which new bonds are issued.
P a r t 6 .— Mutual funeral fund
A rt . 62. A ll employees of the public adm inistration, whether national or
municipal, in active service or retired, shall, when this law becomes effective,
deposit in the fund, through the disbursing officers, the am ounts indicated below
fo r the first death that o c cu rs:
{a ) Employees receiving a monthly salary over 500 sucres, 1 sucre;
(&) Those who receive from 150 to 500 sucres per month, 50 centavos;
(c ) Those who receive up to 150 sucres per month, 25 centavos.
A rt . 63. W henever an employee who is in the service or retired dies, the fund
shall pay to his heirs a sum equal to the am ount on deposit fo r emergencies.
A rt . 64. The paym ent having been made, the adm inistrative council shall
n otify the disbursing officers in order that they m ay deduct from the salaries
o f all the employees referred to in article 63 the sum of 1 sucre, 50 centavos,
or 25 centavos each, as m ay be indicated, in order to take care of the n ext
death.
A rt . 65. W h eth er the succession of the deceased worker is testam entary or
intestate, only the descendants, the surviving spouse, the ascendants and
sisters shall be entitled to the funeral fund, in the manner established fo r the
distribution of the civil pension.
A rt . 66. If the deceased did not leave any person specified for the pension in
accordance with this law, the sum deposited shall go to increase the resources
o f the fund, which shall pay the funeral expenses in an amount not to exceed
500 sucres.
A rt . 67. In case o f war, internal armed conflicts, epidemics, and force
m ajeure causing the death of various persons simultaneously or in succession,
the provisions o f this section shall not be observed. The suspension o f these
provisions shall be made at the discretion o f the President o f the Republic.
P a r t 7.— Organization and operation of the fund
A r t . 68. The administrative council o f the fund shall be composed o f : The
Minister o f Social W elfare, who shall be its chairm an; the Chief Justice of
the Supreme C ou rt; the president of the Central University ( Universidad
Central) ; the Inspector General of the A rm y; the chairman o f the Municipal
Council o f Quito, representing the m unicipalities; and two delegates, appointed
by mutual agreement o f the employees’ associations o f the Republic. I f for
any reason the nomination o f these two delegates is not made within the time
fixed by the by-laws, they shall be appointed by the President o f the Republic.
The manager o f the fund, who shall be named by the administrative council,
shall act in the capacity o f secretary o f this council and shall have only an
inform ative vote.
A rt . 69. T h e duties of the adm inistrative council are the general m anage
ment and supervision of the fund and the duties assigned to it by this law , as
w ell as those assigned in the by-laws.
A rt . 70. There shall be, in addition, an executive commission composed of
three members appointed by the administrative council.
This executive commission shall have charge o f the operations o f the fund
and its members shall be liable personally and financially for operations in
violation o f this law or the by-laws.
A rt . 71. The manager and the members o f the executive commission shall
be elected for a term o f three years, but the members first appointed shall re
main in office one, twTo, and three years according to the order o f their election.
The manager and the members may be reelected an indefinite number o f times.
A rt . 72. The manager shall act as the legal representative o f the fund.
A rt . 73. The organization o f the fund, strength and form o f its operations,
internal administration for the functioning o f the council, number of em
ployees, their salaries, and other details shall be regulated by the by-laws o f
the council, which shall be issued by the President o f the Republic.
A rt . 74. The fund shall pay the retirement annuities, pensions, and funeral
benefits after approval by the administrative council, and report it to the
manager.
T E X T OF L E G IS L A T IO N
31
A rt. 75. The fund shall require that those receiving a pension shall prove
their survivorship every six months.
A rt . 76. The provincial governors, and through them the political heads of
the cantons, and their assistants shall be required to demand the proof o f
survivorship during the months o f January and July o f each year, to send
the certificates to the administrative council, and to report immediately each
case o f death, emergency, birth, and other circumstances modifying the manner
o f paying the pensions or causing the suspension or cancellation o f the benefit.
A rt . 77. The administrative council shall take special care to employ proper
and legal means in order to prevent a person from acquiring right to the fun
eral fund or pension through false identity.
For the same reason the council is empowered to question the civil status o f
any person who claims to be entitled to the fund, said claim to be impugned
by the legal representative o f the fund in the manner and form prescribed by
the civil code.
The above provision is understood to be without prejudice to the penal action
involved in cases o f fraud.
A rt . 78. The conditions required in order that the fund may establish
branches in the capitals o f the Provinces, as well as the amounts to be used
in the creation o f divisional pension funds, shall be stipulated in the by-laws.
P art 8.— General provisions
A rt . 79. Only the retirement annuities actually in existence at the present
time shall be considered in the Federal budget, and no new annuities shall be
considered.
A rt . 80. In the granting o f military annuities and pensions the respective
laws shall be followed.
A rt . 81. Retirement annuities and pensions and funeral benefits shall not be
subject to attachment except for the payment o f maintenance allowances which
are legally due. The funeral benefit shall never be taken into consideration
for the payment o f the debts o f an estate.
A rt . 82. T h e by-law s shall give in detail the scale o f percentages, according
to the length of service, for the beneficiaries o f the retirem ent annuity or
pension.
A rt . 83. The operations o f the fund, its property and income, are exempt
from all national or municipal ta x e s ; in the same way, the documents and
bonds of the fund shall not be subject to the use o f stamps or stamped paper,
and are therefore exempt from the provisions o f article 29 o f the income-tax
law and article 11 o f the stamp duty law.
A rt . 84. This law repeals all preceding retirement laws, and all provisions
of law that may be contrary thereto, except the m ilitary laws.
A rt . 85. This law shall be in force from the date o f its publication in the
Registro Oficial.
Transitory provision
A rt . 86. Until the fund begins to function, the disbursing officers shall make
the deductions referred to in this law from the salaries of the Government
employees beginning with this month’s salaries, and shall deposit them in the
Central Bank ( Banco Central).
B ank Employees
LAW OF OCTOBER 6, 1928
A rticle 1. Compulsory retirement for bank employees, including the Central
[B ank], is hereby established in Ecuador.
A rt . 2. T o form the retirement and disability fund for the persons enumer
ated, the retirement fund (Caja de Pensiones) shall, from the date this decree
law goes into effect, receive each month the follow ing contributions, to be
carried in a special f u n d :
(a ) Each one of the employees referred to in article 1 shall pay 5 per cent
o f his salary.
(?>) The banking institution shall pay 5 per cent of the salaries of its said
employees.
32
L A B O R L E G IS L A T IO N
OF E C U A D O R
The 10 per cent form ed by the accumulation o f the percentages stipulated in
(a ) and (b ) shall be deposited in the retirement fund monthly by the person
in charge of paying the salaries in each b a n k ; and the manager of the retire
ment fund shall give a receipt, specifying each of the employees from whom
the deductions have been made.
The disbursing officer who is required to make the deduction shall be per
sonally liable for delivery of the funds, which he shall make within eight days
from the monthly payment of the employees. The managers are jointly liable
with the disbursing officers in this matter.
The eight days shall be counted from the 1st of the month, starting the 1st o f
November of this year and the first deposit being made not later than the 8th
of that month.
For the purpose o f this provision, employees must be paid at least once a
month.
A rt . 3. The retirement fund shall open an account for each of the employees re
ferred to in this law, showing his contributions and also those of the employer.
A book shall be given to each one o f the contributors, in which shall be entered
the same amounts, for the purpose of verification. These books shall be re
newed each year and shall constitute proof o f the payment for the purposes
of the case, being signed at the beginning of the deposits and at the end o f each
year by the contributing employee, the manager o f the bank, and the manager
o f the retirement fund.
A rt . 4. The banking institutions are required to retire employees who, by
reason of age, disability, or length of service, are entitled to this privilege.
This obligation begins when this decree goes into effect, and shall be discharged
in accordance with the provisions of the law of civil retirement annuities and
pensions, savings, and mutual funeral benefits.
The obligation established by this article admits o f no exception, and failure
to comply therewith shall be punished by a fine o f from 500 to 2,000 sucres,
according to the amount, without prejudice to the right o f the retirement fund
to pay the retirement annuity and to collect an equivalent sum every month
by judicial process against real or personal property of the representative of
the banking institution.
A rt . 5. The retirement fund shall begin in 1933 to make payments o f retire
ment annuities to the employees referred to in this decree, but only in propor
tion to the fund accumulated by the share of each contributor and o f his em
ployer. The rest o f the annuity shall be paid by the respective bank.
A rt . 6. The banking institutions and the employees referred to in this decree
shall prove all the particulars relative to the salaries and working conditions
o f each one o f the employees before the manager o f the retirement fund in
Quito and the respective governors in the other Provinces.
A rt . 7. Within the period of three months from the promulgation o f this
decree, all the employees covered by the same shall prove their ages and the
length of service in the employment that entitles them to the annuity before
the authorities named in the preceding article. The governors shall be per
sonally responsible for the collection o f complete statistics, which they shall
send to the retirement fund.
A rt . 8. In the same period of time as that allowed in the preceding article,
the retirement fund, through the respective adm inistrative authorities, shall
prepare statistics of all the banking institutions referred to in this decree. Said
institutions shall be required to register, listing the number of employees, be
fore the respective governor or chief political authority, or before the m anager
of the retirement fu n d ; and shall be punished by a fine of from 100 to 1,000
sucres fo r each month of delay, if they allow the specified period to elapse.
A rt . 9. The petitions, proofs, procedure, etc., shall be subject, for all pur
poses, to the provisions of the law on civil retirement annuities and pensions,
savings, and m utual funeral benefit, and to the by-law s of the retirem ent fund.
In the same manner the adm inistrative council shall decree the retirement,
fix the annuity, and notify the institution required to m ake the payment.
A rt . 10. A n y bank employee who voluntarily or for a ju st cause leaves his
em ploym ent shall be entitled to collect the am ount of his contributions and
the employer’s contribution for him, without any other proof than the verifi
cation of the amounts according to the accounts in the respective books.
But if the separation was due to inefficiency in the performance o f his duties,
he shall be entitled only to the amount of his contributions and not to the
T E X T OF L E G IS L A T IO N
33
employer’s contribution, which shall accrue to the benefit of the retirement
fund.
A rt . 11. I f a separated employee wishes to have the time of his previous
services computed, after having withdrawn the funds referred to in the respec
tive article, the provisions of article 33 of the law of civil retirement annuities
and pensions, savings, and mutual funeral benefits, shall be observed.
A rt . 12. The employees referred to in this decree, who wish to come under
the law of civil retirement annuities and pensions, savings, and mutual funeral
benefits, o f March 13 o f this year, shall be subject to the provisions o f articles
3 and 28 of the sam e; and in such case the obligation of the banks to pay the
contribution corresponding to the employees shall be suspended, and the latter
shall be required to satisfy the same.
A rt . 13. From the time this decree goes into effect it shall be prohibited,
under penalty of a fine of from 100 to 1,000 sucres, to reduce the present salaries
of the employees in the institutions referred to in article 1 ; or to require the
employee to pay out of his salary the percentage owed by the employer.
A rt . 14. The fines established by this decree shall be imposed by the Ministry
of Social W elfare, after proof of the violation, and shall go to increase the re
tirement funds of the employees of the institutions in question.
A rt . 15. The procedure, conditions o f service, contributions, circumstances
of age, disability, etc., shall be subject to the provisions of the law o f March
13, heretofore cited, in everything not expressly stipulated in this decree, and
to the provisions of the by-laws of the retirement fund, with the exception of
the provisions concerning compulsory savings, funeral funds, and civil pensions,
which apply only to public employees.
A rt . 16. The Minister of Social W elfare shall administer this decree, which
shall become effective from this date.
General Labor Inspection Service
LAW OF JULY 13, 1926
A rticle 1. A general labor inspection service, under the direction of the
Ministry of Social W elfare and Labor, is hereby created.
A rt . 2. The bureau of this name in the respective m inistry shall be in charge
of the work of this inspection.
A rt . 3 (as amended by decree of February 2, 1927). The territory o f the
Republic is hereby divided into five districts, each of which shall be placed
under the jurisdiction of a general labor inspector. The first district is com
posed o f the Provinces o f Carchi, Imbabura, Pichincha, and L e o n ; the second
o f Tungurahua, Chimborazo, Bolivar, and N apo-Pastaza; the third of Canar,
Azuay, Loja, and Santiago-M orona; the fourth of Guay as, Los Rios, El Oro,
and the Archipelago o f C olon ; and the fifth of Manabi and Esmereldas.
A rt . 4. The executive shall issue regulations for the organization and duties
of the labor inspection service.
A rt . 5. This decree shall become operative on July 15, instant, the Minister
of Social W elfare and Labor and the Minister o f the Treasury being charged
with its enforcement.
REGU LATORY DECREE OF JULY 29, 1926
A rticole 1. For the purposes o f this decree, the general labor inspection service
of the Republic shall consist o f a general office of inspectors, and five inspectors
who shall have jurisdiction in the districts specified in the follow ing article.
A rt . 2 (as amended by decree o f February 2, 1927). The Republic of Ecuador
is hereby divided into five districts:
(a )
District 1, composed of the Provinces o f Carchi, Imbabura, Pichincha and
Leon.
(&)
District 2, composed o f the Provinces of Tungurahua, Chimborazo, B oli
var, and Napo-Pastaza.
(c )
District 3, composed of the Provinces o f Canar, Azuay, Loja, and SantiagoMorona.
(<£) District 4, composed o f the Provinces o f Guayas, Los Rios, El Oro, and
the Archipelago o f Colon.
(e ) D istrict 5, composed o f the Provinces of M anabi and Esm eraldas.
34
L A BO K L E G IS L A T IO N
OF E C U A D O R
C h ap ter 1.— Purpose of the labor inspection service
A rt. 3. The essential purpose of the labor inspection service to be established
in the Republic is to enforce the observance of the laws and decrees referring to
labor conditions and the protection o f the workers in the pursuit o f their occu
pation (hours of work, night work, overtime, provisions relating to sanitation,
protection o f the health of workers, and safety measures, especially in factories,
compensation for industrial accidents, and other provisions in force regarding
labor contracts).
A rt. 4. In addition to its essential purpose, as given in the preceding article,
the inspection service shall endeavor to promote the expansion o f production,
by stimulating the workers and also by inducing the employers, as far as pos
sible by conciliatory and amicable means, to improve their establishments, ma
chinery, methods o f work, and all matters affecting the welfare of the worker
and the increase o f output.
C h apter 2.— Pow ers and duties of the labor inspection service
A rt. 5. The entire personnel of the labor inspection service shall be considered
administrative officials, and shall therefore be subject to the law respecting
Internal administration in all matters that are not specifically covered by the
decree creating the general labor inspection service or by this regulation.
A rt . 6. The duties of the director of labor inspectors shall be as fo llo w s :
(a ) To oversee the work of the inspectors, making periodical visits, at
least once a year, for the purpose of seeing that the progress of the service is
satisfactory, and to report to the ministry as to the manner in which each
inspector performs his duties and with regard to any complaints against the
inspectors.
(b ) To make a monthly summary report to the ministry of the w ork per
formed by the labor inspectors, based on their reports to him, showing the
results obtained by the administration of the lawTs and decrees in force, and in
dicating the omissions and deficiencies observed and the manner in which they
may be remedied.
(c ) To carry out and cause to be carried out by his subordinates the orders
o f the Minister o f Social Welfare.
(d ) To keep the books and have charge of the files and other documents of
the labor office.
( e ) To seek the better attainment o f the objects for which the Department
o f Labor was created, submitting to the ministry drafts of decrees and laws
pertaining thereto.
A rt. 7. The Director o f the Department of Labor shall be the secretary of
the advisory board, the sessions of which he shall attend and in which he may
have a voice but not a v o te ; he and the chairman of the board shall both sign
the records of the sessions.
A rt . 8. The inspectors have the follow ing powers and du ties:
(a ) To visit and inspect all work places, such as factories, workshops, agri
cultural enterprises, mines, and industrial establishments in general, at any
time o f the day or night when it may be necessary, subject merely, to the pre
sentation o f their credentials to the manager, superintendent, or director of
said factories, etc. Each one of these establishments shall be visited at least
once a year.
( b) T o report to the Director General of Labor any violations which they
may observe, accompanied, if possible, with the relevant data or evidence.
(c ) To submit to the general office a monthly report giving details o f the
visits made to the establishments under their jurisdiction.
(d ) To watch for and to investigate opportunely and in advance any causes
which may give rise to disputes between employers and workers, and to com
municate the particulars to the general office.
In case of a strike they shall submit a special report, in w^hich shall be
stated the causes leading up to the strike, the phases through which the strike
has passed, and the steps to be taken in order to prevent a recurrence. They
shall likewise devote particular attention to the prevention of unemployment,
and if unemployment becomes prevalent they shall investigate the matter and
submit to the Department of Labor any suggestions which may seem desirable.
(e ) To suggest to the employer or the person concerned any alterations
which it may be necessary to make in the plant or machinery in order to
feecure the enforcement of the laws or regulations relating to sanitation, safety,
T E X T OF L E G IS L A T IO N
35
or the w elfare o f the workers. I f the employer refuses to comply with the
recommendations made, the inspector shall notify the Director General of
Labor.
After a report o f the experts specified in article 14 of these regulations, or
in lieu thereof the report of tw o persons o f experience and of recognized
honesty and competence, the inspectors, in case of imminent danger to the
life or safety of the workers, may order the immediate closing of the estab
lishment, the stopping of work, or the total or partial stopping of the machinery
from which the danger is threatening, the Ministry of Social W elfare being
notified at once. Such an order o f the inspector shall be carried out not
withstanding any appeal which may be made to the ministry or any other
opposition o f the person concerned.
The person concerned may appeal to the Ministry o f Social W elfare and
Labor against the orders o f the inspectors in the cases referred to in the
preceding paragraph.
(f )
To visit periodically the work places in their respective districts, to
collect all possible information, to deal with complaints and protests sub
mitted by employers and workers, and to endeavor to secure an amicable
settlement. I f they fail to secure such a settlement, they shall report the
matter to the Ministry o f Social W elfare.
A rt. 9. The labor inspector shall note any irregularities observed in the
course of his visits o f inspection and shall suggest to the ministry changes
which should be made and measures which it may be necessary to adopt.
A rt. 10. The labor inspector shall endeavor by all the means in his power
to promote the progress and growth of trade-unions, and also of consumers’
cooperative societies, night schools, and workers’ libraries where they exist,
and the establishment thereof where they do not already exist.
A rt. 11. The labor inspectors shall require employers and managers or
superintendents o f factories, workshops, agricultural enterprises, mines, etc.,
to furnish monthly in writing detailed data of the number o f industrial acci
dents which have occured in their establishments, the causes and results of
such accidents, those which have proved fatal, and the compensation paid to
the persons injured thereby. The inspectors shall immediately check these
particulars and transmit them to the ministry. The inspectors shall also
investigate on their own account the accuracy o f the data furnished, and shall
inquire into accidents which have not been reported to them and make any
suggestions and observations to the ministry that the case or cases require.
A rt. 12. The labor inspectors shall require employers, managers, superin
tendents, etc., o f factories, workshops, agricultural enterprises, and other
places of employment in which the number of workers or employees exceeds
20 to issue work rules for their establishments.
The work rules shall be submitted to the Ministry of Social W elfare for its
approval, and after approval shall be posted in a conspicuous place in the
factory, workshop, etc.
A time limit o f tw o months from the date o f the promulgation of these
regulations shall be fixed for sending in the above-mentioned work rules.
The inspectors shall supervise the observance of the said work rules, which
shall be considered to have the force of law within the places of employment
concerned. In case o f a violation thereof, the inspector shall at once notify
the ministry.
The work rules shall not be altered without previously being submitted to
the General Labor Office.
A rt. 13. The labor inspectors may apply to the ministry for an order to
close any establishments which fail to satisfy the necessary requrements of
sanitation and h ealth ; their application shall be accompanied by a report from
the medical health officer or the municipal health officer.
A rt. 14. In cases of technical inspection in the revision o f gangways, ma
chinery, boilers, electrical conductors, etc., and whenever they consider it de
sirable in order to secure a more satisfactory decision, the labor inspector shall
consult with a civil engineer working under the national or municipal
department of public works.
A rt . 15. In the application to agriculture o f laws and decrees relating to
labor, the inspectors shall endeavor to adjust the said laws and decrees to the
customs of each district. I f it is impossible to do so without serious injury to
agricultural production, they shall consult the General Office before adopting
any decision.
36
L A B O R L E G IS L A T IO N OF E C U A D O R
A rt . 16. In the performance of their duties the inspectors shall endeavor to
observe strict impartiality and to maintain their authority both with respect
to employers and workers.
C h apter 3.— Organization of the inspection service
A rt . 17. All the personnel of the General Office may be freely appointed and
removed by the executive, who shall be guided in his choice by the evidences of
ability and honesty shown by the aspirants for the respective positions.
A rt . 18. The inspectors shall be under the immediate direction of the General
Office, through which they shall receive the orders and instructions necessary.
A rt . 19. The inspectors shall take a solemn oath not to reveal the secrets
of manufacture and in general the business processes which they may learn.
Any violation in this respect committed by the inspectors shall be punished by
discharge from the service, without prejudice to any damages which may be
payable to the person affected.
C h a p te r 4 .—Penalties
A rt . 20. Fines fo r repeated violations of the law s, decrees, and regulations
relating to labor shall be imposed by the m inistry concerned after the accused
person has been heard.
A rt . 21. N o fine shall be imposed without previous warning.
A rt . 22. Fines shall not exceed 50 sucres, in the case of a first offense and
in the case of further offenses shall be increased by 25 per cent on each occasion,
provided they are imposed for the same reason. The fines shall be collected by
the revenue officer for the Province, who shall take action after receiving
instructions from the Ministry of Social W elfare.
A rt . 23. The proceeds of the fines imposed under this decree shall be utilized
for the •establishment and development of consumers’ cooperative societies,
public libraries, and night schools, which shall be under the auspices of the
Ministry of Social W elfare and shall be supervised by the inspectors.
A rt . 24. The labor inspectors shall be appointed to the places considered
advisable by the m inistry concerned.
A rt . 25. The Minister of Social W elfare and Labor shall be responsible for
the administration o f this decree, which shall come into operation at once.
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