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Ecuador: Elimination of maximum amount of employees share in profits

The plenary session of the Constitutional Court accepted the claims filed against Article 15 of the Labor Justice Law, referring to the ceiling of the profits received by the workers. This Law established a ceiling of 15% of the profits of workers in the private sector, which could not exceed the 24 Unified Basic Salaries and in the event that exceeds the amount indicated, the surplus should be delivered to the solidarity regime within The Social Security Regime.

Therefore, the distribution of profits for fiscal year 2017 and later will not be subject to this limit.

2018-03-27T17:52:23+00:00 27/03/2018|Latest news|