Labor Ministry reverses decision, confirms 100% surcharge for working on June 26, 2026

Ecuador's Ministry of Labor has corrected its earlier interpretation regarding compensation for employees who worked on June 26, 2026. This date was declared a holiday following the national soccer team's advancement to the World Cup's knockout stage.

Initially, on June 29, the ministry had communicated that no additional payment was required for working on this suspended workday, classifying it as an ordinary day. However, a subsequent official statement on July 1 clarified that employers who chose to operate and required their staff to work on June 26 must now provide a 100% surcharge on their regular remuneration.

This reversal means that employers who did not observe the suspension of work, as decreed by Executive Decree 431, and instead kept their businesses running, are now obligated to pay their employees for that day as if it were a mandatory rest day. This decision resolves the uncertainty that had arisen among workers, employers, and unions following the presidential decree.