In Ecuadorian labor law, approval constitutes an exceptional administrative mechanism that allows employers—and employees—to terminate the employment relationship when legally established and duly proven grounds exist. Its formal nature, subject to strict deadlines and specific procedural rules, requires employers to act in a technical, timely, and strategic manner, as any omission may give rise to significant labor contingencies.
The approval procedure is initiated by submitting a written request to the competent Labor Inspector, determined by the territorial jurisdiction of the place where the contract is executed or by the domicile of the party being sued. This request must include a clear, detailed, and thorough statement of the facts, the express and correct invocation of the applicable grounds provided for in Article 172 of the Labor Code, the identification and provision of supporting evidence, as well as a specific claim. Ministerial Agreement MDT-2024-041 expressly reinforces the standard of formal rigor in this initial stage of the procedure, providing that, in the event of non-compliance with the admissibility requirements, the labor administrative authority shall order the plaintiff to complete, clarify, or correct the request within three days. If this provision is not complied with in a timely manner, the Labor Inspector will refrain from continuing with the proceedings and will proceed to file the case without ruling on the merits, a circumstance that may give rise to significant labor contingencies and compromise the employer’s legal position.
Once the application has been assessed, the Labor Inspector must notify the worker within twenty-four hours, granting them a period of two days to respond. Once the application has been answered or the worker has been declared in default, the Inspector shall convene, within three days, the investigation proceedings, which comprise a phase of remediation and conciliation and another phase of evidence and arguments. Once this stage is complete, the administrative authority has an additional three days to issue a duly reasoned decision, granting or denying approval. Under normal conditions, when the worker is notified in person, the administrative approval procedure cannot take more than thirty days; however, if the notification must be made by publication in the press, the deadline is extended.
One aspect of particular relevance to employers is the right to request the suspension of the employment relationship while the approval is being processed. Pursuant to Article 622 of the Labor Code and Article 5, paragraph 8, of Agreement MDT-2024-041, this right belongs exclusively to the employer, who may request it on reasonable grounds. If granted, the employer must pay the equivalent of one month’s salary to the employee within 48 hours. This provision is not automatic or mandatory, but rather an exceptional tool that seeks to protect business operations when the employee’s continued employment is incompatible with the grounds invoked.
With regard to the statute of limitations, Ministerial Agreement MDT-2024-041 clearly establishes that the action to request approval from the employer expires within one month, generally counted from the date on which the events giving rise to the cause occurred. Exceptionally, in certain cases—such as lack of integrity or harassment—the period begins when the employer became aware of the events, and proof of that moment of awareness must be provided. It also clarifies that, in relation to the first cause under Article 172, the period will be calculated from the last day of tardiness or absence from work.
In conclusion, approval is a legitimate and necessary tool for employers, but its effectiveness depends on strict compliance with deadlines, the correct structuring of evidence, and precise knowledge of the current regulatory framework. A technical approach, in line with Ministerial Agreement MDT-2024-041, allows employers to exercise their right to management and discipline without violating due process or exposing themselves to subsequent labor contingencies.
As additional information, it should be noted that the resolution issued by the Labor Inspector may be appealed by either party in an administrative proceeding within three (3) days of notification, which appeal shall be heard and decided by the Regional Director of Labor and Public Service within a maximum period of one month. In turn, when the decision is issued at the regional level, it may be challenged again by filing an appeal with the Undersecretary of Labor of the Ministry responsible for labor policy, which must be filed within the same three-day period and must be resolved within the same time frame. In all cases, administrative decisions of approval may be appealed in court.
