More than 5 thousand people work with an emerging contract

Employers see this modality as an option to increase hiring, but workers consider it to be a setback.

5,971 people work under the emerging contract modality in the country, which is contemplated in the Humanitarian Law in force since June 22.

This type of contract can last one year or less and can be extended for an additional year. The salary payment can be daily, weekly or monthly and the cost of separation is reduced because there is no settlement.

The only thing that is paid is the eviction and the proportions of benefits such as tickets, reserve funds or vacations.

According to the Ministry of Labor, this figure is used for new hires intended to sustain production, the income of a company or new lines of business.

One of the characteristics of this modality is that it has a flexible working day, since it can be a minimum of 20 hours a week and a maximum of 40, from Monday to Saturday. This has allowed employers to expand the payroll in certain sectors, in the midst of the crisis generated by the health emergency.

Data from the Ministry determine that 60% of the links under this figure are concentrated in the areas of agriculture and livestock, manufacturing industry and commerce.

671 companies used the new legal figure until August 3. The provinces where more modalities of this type were registered are: Pichincha, Guayas and Azuay.

Caterina Costa, president of the Guayaquil Chamber of Industries, described this modality as interesting because it helps reduce barriers to hiring employees.

Rafael Guerrero, from the Chamber of Agriculture of Zone II, acknowledged that with the emerging contract the workforce has been increased to create new lines of products.

Meanwhile, Pablo Arosemena, president of the Guayaquil Chamber of Commerce, pointed out that greater flexibility of the working day was required. But the workers’ unions, on the other hand, reject this figure.

For example, the Federation of Public and Private Workers filed a lawsuit of unconstitutionality against the emerging contract, because it retakes the defunct fixed-term contract, eliminated in 2015.