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In a judgment of 1.12.2021, the Constitutional Court of Ecuador examined the constitutionality in concreto of an interpretative provision of the Labor Code contained in the “Organic Law of Humanitarian Support for the Fight against the Health Crisis derived from COVID-19”, published on 22.6.2020.

The interpretative provision extended the range of reasons on the basis of which employers can justify the termination of individual employment relationships. The provision had been applied to dismissals occurred prior to the entry into force of the Organic Law. The Court found that, in view of its retroactive effect, this provision is incompatible with the right to legal certainty and foreseeability. Accordingly, the Court held that it should not be applied to dismissals occurred before its entry into force.

Full text of the decision available at ES