Ecuadorian workers can claim severance pay after resignation

Resigning from a job in Ecuador does not mean forfeiting earned economic rights. Workers whose resignations are accepted can still receive a settlement covering benefits like the 13th and 14th salaries, pending wages, and unused vacation days. Labor law expert Vannessa Velásquez clarifies that simply submitting a resignation letter does not automatically end the employment relationship.

According to Velásquez, a resignation only terminates the contract when the employer formally accepts it, aligning with Article 169 of the Labor Code regarding termination by mutual agreement. She stresses the importance of obtaining written acceptance, as failing to do so and simply ceasing work could lead to disciplinary action for abandonment.

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That resignation letter, by itself, because it exists or because it was delivered, does not terminate the labor relationship.

When employment concludes, employers must calculate all outstanding payments. This includes prorated amounts for the 13th and 14th salaries if not already paid monthly, as well as any accumulated or pending vacation days. The Labor Code grants 15 uninterrupted vacation days per year of service.

Mary Carmen Ruiz, a Human Talent analyst, advises employees to verify all pending payments, including commissions and other benefits, before leaving a company. She also recommends keeping all termination documentation and meticulously reviewing the final settlement agreement. The settlement may also include unpaid salaries, overtime pay, and benefits from collective bargaining agreements.

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The amount due by legal provision is the payment for desahucio, which is 25% of the remuneration for each completed year of work.