Despido intempestivo: 3 to 25 months of pay plus the 25% desahucio bonus
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 15 Oct 2026.A despido intempestivo in Ecuador, a dismissal without legal cause, costs the employer three months of pay for up to three years of service and one month per year beyond that, a part year counting as a whole one, never more than 25 months (article 188). The 25% desahucio bonus for each complete year is paid on top, with the proportional vacations and any décimos not yet paid.
2026 · Rates and rules read from the sources listed on this page (the earliest on 15 Oct 2026); they may have changed since.
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When a job ends in Ecuador the employer settles what is owed. This page adds up the parts the Código del Trabajo states clearly, each on its own line.
Desahucio bonus (article 185). A quarter of the last monthly pay for each year of service, when you resign with written notice (desahucio, article 184), when you and the employer agree to end the contract, and on top of a dismissal. The article says "for each of the years" without saying how a part year counts, so the page counts complete years and shows separately what the part year would add if your employer prorates it.
Despido intempestivo (article 188). A dismissal without legal cause: three months of pay for up to three years of service, then one month for each year, a part year counting as a whole one, never more than 25 months, on the pay you had when dismissed.
The rest of the article, and all 6 questions about Ecuador Liquidación Calculator (Final Settlement), are on the Ecuador Liquidación Calculator (Final Settlement) page.
Add the parts the Código del Trabajo grants: the 25% desahucio bonus per year of service when you resign with notice, agree to leave or are dismissed; the dismissal compensation of article 188; vacation pay not taken; and any accumulated décimos. The last month's salary and fondo de reserva come on top.
Article 185 gives 25% of the last monthly pay for each year of service with the same employer. On US$900 a month after four complete years that is US$900. It is paid when you resign with written notice, when the contract ends by agreement, and also on a dismissal.
Three months of pay for up to three years of service, and one month for each year beyond three, never more than 25 months. A part year counts as a whole one, so 4 years and 6 months gives 5 months. The 25% desahucio bonus is paid on top.
Yes. A resignation with written notice is a desahucio under article 184, which carries the 25% bonus per year of service. You also receive vacation pay not taken and any accumulated décimos. Only the dismissal compensation of article 188 is not due when you resign.
Rates and rules change; check the source before you rely on a figure.
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