legal flash #00340 procedure for registration of acts of settlement

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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