Request a ProposalDownloadShare

Ecuador – Employer of Record 

Reading Time: 2 minutes

Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Ecuador. Your candidate is hired via Globalization Partners’ Ecuador PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Table of Contents

Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Ecuador while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Ecuador.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 170 countries around the world, quickly and painlessly.

Basic Facts for Hiring in Ecuador

Ecuador is located in South America and has a population of 15.74 million. The capital city of Ecuador is Quito which has a population of 1.619 million. Ecuador was names after the equator which runs through the country, the only country in the world named after a geographical feature. Its official name, República del Ecuador, literally means “the Republic of the Equator”.

When negotiating terms of an employment contract and offer letter with an employee in Ecuador, it may be useful to keep the following in mind:

Ecuador Holidays

  • New Year’s Day
  • Carnival
  • Good Friday
  • Labor Day / May Day
  • The Battle of Pichincha
  • Independence Day
  • Independence of Guayaquil
  • All Soul´s Day
  • Independence of Cuenca
  • Christmas Day

Employment Contracts in Ecuador

In Ecuador, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in Spanish, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Ecuador should always state the salary and any compensation amounts in American Dollars rather than a foreign currency. The employment contract template is part of the service with Globalization Partners; no need to draft a separate template if you use our employer of record and PEO service in Ecuador.

Why Globalization Partners

Establishing a branch office or subsidiary in Ecuador to engage a small team is time-consuming, expensive and complex. Ecuadoran labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Ecuador. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Ecuador PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.

If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Ecuador, please contact us.

Download this content in PDF