Employers must pay until today profits to their workers

Registration of this participation must be made until June.

This April 15 is the deadline for companies to pay profits to their workers; while the registration of that participation should be made until June, reported the Ministry of Labor.

Article 4 of the Ministerial Agreement MDT 2020 079, issued on March 24, states that employers must make the payment within 15 days, counted from the date of settlement of profits that is March 31 of each year.

Instead, companies have 90 days to register payments in the Ministry of Labor system, as established by the Labor Code due to force majeure or acts of God.

Regarding the calculation for the payment of this benefit, the Ministry recalled that according to article 97 of the Labor Code, 15% of profit sharing, 10% are for workers and former employees, and the remaining 5% is delivered in proportion to their family responsibilities.

The employer must consider the time of services, without making any differentiation with the remuneration or the type of occupation for the payment of utilities.

Despite not having updated figures on how many companies have already fulfilled this obligation, Caterina Costa, president of the Ecuadorian Business Committee (EEC) and the Chamber of Industries of Guayaquil (CIG), assured that the majority of affiliated companies are complying with the pay.

Article 628 of the Labor Code states that failure to register the payment of 15% of the profit share is sanctioned.

Source: El Universo, social networks

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