Co-funded by the European Union

Ecuador: “Violet Law” enacted

  • On 10 January 2023, the National Assembly of Ecuador passed the Organic Law to Promote the Violet Economy, aiming to achieve equal treatment and rights between men and women and to prevent and eradicate gender-based violence.
  • It came into effect on 20 January after its publication in the Official Register.

The law covers a wide range of issues related to gender-based violence, including sexual violence, discrimination in personnel selection, and harassment in the workplace, setting out measures and public policies to prevent and address gender-based violence. In addition, employers with more than 25 employees must establish specific regulations, such as codes of best practices, protocols, and informative campaigns, to prevent and address complaints.

Companies must respect equal treatment and opportunities in the workplace and adopt measures to avoid discrimination between male and female workers, and employers with more than 50 employees must develop an equality plan registered before the Ministry of Labour.

The law also strengthens the labour inspection system to address gender issues. In addition, it includes creating public programs and policies aimed at encouraging and increasing the participation of women in the country's economy.

For companies that have evidence of compliance with the requirements outlined in the law, it provides benefits and tax incentives for hiring female employees, such as increased tax deductions for new female hires (up to 140 percent additional tax deductions). Moreover, the appointment of female board members is mandatory, and companies with three or more members on their Board of Directors shall ensure that at least one of them is a woman. All those measures aim to encourage companies to increase women's participation in the labour force and to promote gender equality in employment.

The Ministry of Labour shall create an award recognising companies and employers compliant with implementing equal treatment and opportunity policies.

As a result of the law, even second-level programmes should also be introduced, endowed with sufficient funds to be successfully continued and maintained in the long term.