The time of the year is coming when you have to pay the decimo tercero, or Christmas Bonus. But how much you have to pay, to whom you have to pay it and when you have to pay it?
First, it is important to note that all those who are employed under the Ecuadorian labor law have the right to receive the Christmas Bonus. If someone is providing you services under a civil relationship you should not have to pay this bonus. It is very important that you have this relationship clear with your employees.
The amount you have to pay according to the law is 1/12th of the total amount the employee received during the year, or the proportional amount if the employee hasn´t been working for you for an entire year.
This can be a big chunk of money at the end of the year. For this reason employers have the right to pay this bonus prorated every month, unless employees ask in writing to be paid the accumulated amount in December.
The deadline to make the payment is December 24th of every year.
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