www.legalecuador.com LEGAL FLASH #00340 PROCEDURE FOR REGISTRATION OF ACTS OF SETTLEMENT AND EMPLOYMENT CONTRACTS, AND FOR ALLOCATION OF SETTLEMENT ISSUED BY THE MINISTRY OF LABOR RELATIONS Dear Clients and Friends: The following is to inform you about the new procedure established by the Ministry of Labor Relations for the legalization of contracts and minutes of settlement, as well as the allocation of settlement in benefit of workers: I. Registration of Employment Contracts Prior to registration of contracts in the application, the company must have a PDF file of the contract signed by the employee and by the legal representative of the company and the entry notice to the IESS. The following procedure must be followed: 1. 2. 3. 4. 5. 6. Sign in using your username and password. TERMS AND CONDITIONS; to continue with the process you must Accept these Terms and Conditions by clicking on the ACCEPT button. Enter the information of the type of contract. Enter the information of Location of the contract. If you check Special Workday, you must load the approval document of special work into the system. Complete the Employee and work contract information. Quito: Av. Amazonas No. 4080 y Naciones Unidas Edificio Puerta del Sol, Piso 4. Telf. (593-2) 226 1817 / 226 1818 / 226 1819 - Fax: 226 1766 Guayaquil: Junín No. 105 y Malecón Simón Bolívar, Edif. Vista al Río, Piso 2. Telf. (593-4) 2300814 / 2300327 - Fax: 2302113 @legalecuador 7. 8. 9. 10. Upload the PDF file of the signed contract and notice of entry to the IESS into the system. The entered contract will be displayed in the list on the lower section of the screen. Next print the Summary Slip. The registration process of the contract is concluded. The system will automatically send a notification to the employee’s e-mail address. The employee must access to his registered e-mail address and the following message will be displayed: contratosmrl.gob.ec Registration of Contract - MRL Open the mail and you may see the following message: Registration of Contract – MRL We hereby contact you to inform that you have registered the employment contract with the Company in the system of the Ministry of Labor Relations. Modification of Registered Contracts Important Note: In the list of Registered Contracts, some contracts do not show the Modify button; this is because these contracts were legalized using the previous system, and therefore they cannot be modified. 1) To modify records of registered contracts, access the Contracts menu, List of Contracts option, sub-option Registered. 2) The registration of the contract is concluded. 3) The system will automatically send a notification to the employee´s registered e-mail address. 4) Proceed to print the Summary Slip. Quito: Av. Amazonas No. 4080 y Naciones Unidas Edificio Puerta del Sol, Piso 4. Telf. (593-2) 226 1817 / 226 1818 / 226 1819 - Fax: 226 1766 Guayaquil: Junín No. 105 y Malecón Simón Bolívar, Edif. Vista al Río, Piso 2. Telf. (593-4) 2300814 / 2300327 - Fax: 2302113 @legalecuador II. Registration of Minutes of Settlement The procedure for recording Minutes of Settlement in the system is as follows: 1. The Minute of Settlement and the amounts payable should be generated and printed. 2. The registration of the Minute of Settlement, with the burden of enabling documents: Minute signed and proof of payment in PDF format. Each process is described as follows: Generation, Calculation and Printing of Acts of Settlement. 1. The only way to legalize the termination of an employment contract is through the signing of a certificate of settlement by the parties. 2. The system is able to generate Acts of Settlement, of contracts recorded in the system and therefore have a registration number, and also generates Acts on contracts that are not in the system. The steps to generate Acts are: 1. Select the Acts of Settlement, sub-option Acts of Settlement Registration menu. 2. If required, use search filters to locate the contract to be concluded: 3. If the contract is in the system, press on the selected contract. 4. The system retrieves data recorded for the contract: 5. If the contract is not in the system, click the button "Generate Act of Settlement without Contract" 6. All data must be entered, including the Employee and Location section. 7. In both cases (generating acts with or without contract), the following information must be completed: Quito: Av. Amazonas No. 4080 y Naciones Unidas Edificio Puerta del Sol, Piso 4. Telf. (593-2) 226 1817 / 226 1818 / 226 1819 - Fax: 226 1766 Guayaquil: Junín No. 105 y Malecón Simón Bolívar, Edif. Vista al Río, Piso 2. Telf. (593-4) 2300814 / 2300327 - Fax: 2302113 @legalecuador 8. Enter Information on Labor Termination, the last full payment received: 9. Select the cause for termination of the contract: By the will of the worker prior Ministry approval By eviction By unfair dismissal 10. If there is compliance with the input and calculated values, save the information. 11. Download and print the acts of settlement. Registration of the Act of Settlement To proceed with the registration of the act of settlement, this document and the payment voucher must be in PDF format. 1. Enter the Act of Settlement menu, List of Acts of Settlement option, sub-option Pending. 2. Load PDF files. 3. The act of settlement is registered; to confirm, you may access the Acts of Settlement menu, List of Acts of Settlement option, sub-option Registered. III. Consignment of Acts of Settlement To consign an Act of Settlement, go to the Ministry of Labor Relations (MRL) for an official to change the status of the Act of Settlement and the status "To be consigned" is included. Select the Consign button: Quito: Av. Amazonas No. 4080 y Naciones Unidas Edificio Puerta del Sol, Piso 4. Telf. (593-2) 226 1817 / 226 1818 / 226 1819 - Fax: 226 1766 Guayaquil: Junín No. 105 y Malecón Simón Bolívar, Edif. Vista al Río, Piso 2. Telf. (593-4) 2300814 / 2300327 - Fax: 2302113 @legalecuador To generate the order of payment: a reason of worker no-show will display. 1. Print the document and proceed to make payment in bank. 2. Go to the MRL with the documents (act, order of payment and deposit slip) for an official to record the deposit. 3. Enter the Act of Settlement menu, List of Acts of Settlement option, sub-option Pending, locate the Act in the list, and click the REGISTER button; the screen for uploading documents (act and consignment slip) will display. 4. Upload documents in PDF format and save. Since the new system prevents the Labor Inspector to legalize by signing the Act of Settlement, with the legal uncertainty that this entails, we are requesting the Undersecretary of Labor in the Labor Ministry to clarify this serious deficiency. We hope that this general information is useful. We will be glad to assist with any particular concern if required. Best Regards Dra. Patricia Andrade Vásconez Noboa, Peña, Larrea & Torres Abogados Quito: Av. Amazonas No. 4080 y Naciones Unidas Edificio Puerta del Sol, Piso 4. Telf. (593-2) 226 1817 / 226 1818 / 226 1819 - Fax: 226 1766 Guayaquil: Junín No. 105 y Malecón Simón Bolívar, Edif. Vista al Río, Piso 2. Telf. (593-4) 2300814 / 2300327 - Fax: 2302113 @legalecuador
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