As the eighth largest economy in Latin America, investing in Ecuador allows businesses to share in steady economic growth. Its government is open to foreign investment, and knowledgeable local legal and financial experts help to simplify the company formation process. It’s important to know your remuneration obligations as a company in Ecuador. Read on to learn how to pay your employees and stay compliant with financial regulations. Employment Law Ecuador - Get the paperwork done properly Ecuador’s legal and financial regulations may be complex for some foreigners and can change frequently. Seeking reliable, qualified legal assistance for this process is important in ensuring your company stays compliant and follows due process. The Ecuador Ministry of Labor (Ministerio del Trabajo) supplies a standard format for employee contracts. While companies may write their own contracts individually, all contracts must be uploaded to the Labor Ministry’s website. Contracts for employees include a probation period of three months. During this probation period, employers can terminate the contract without severance. Companies can offer short-term contracts up to six months, as well. However, be aware that employers must pay people on these contracts an additional 35% of the agreed salary. On the other hand, foreign employees need to obtain a work visa in order to work in Ecuador for three months or more. Setting up payroll with your RUC Your company needs to obtain an Ecuadorian Tax Identification Number (known as RUC or Registro Único de Contribuyentes) in order to set up payroll....