The Critical Importance of Background Checks for Domestic Staff in Ecuador: A Legal and Practical Guide for Expats

As an expat settling into life in Ecuador, particularly in cities like Cuenca, hiring domestic staff—a housekeeper (empleada doméstica), nanny, or gardener—is a common practice that greatly enhances your quality of life. However, entrusting an individual with access to your home and family is a decision that demands rigorous due diligence. This is not merely a suggestion; it is a fundamental aspect of risk management and legal compliance. Overlooking this process can expose you to significant legal and financial liability.

This guide provides an authoritative, hands-on overview of conducting background checks in Ecuador, grounded in the specifics of Ecuadorian law and the realities of the local administrative process.

Why Due Diligence is a Legal and Practical Necessity

A casual approach to hiring can lead to severe consequences beyond the obvious risks of theft or property damage. From a legal standpoint, as an employer, you are subject to the regulations of the Ecuadorian state, and negligence can have serious repercussions.

• Theft and Security Risks: The most immediate concern is safeguarding your property and the physical security of your family.
• Legal & Financial Liability: Under Ecuadorian law, employers carry significant responsibilities. An employee's actions can, in certain circumstances, create liability for you. More pressingly, failure to comply with labor and social security laws will result in substantial fines and back-payments.
• Immigration Compliance: Hiring a foreign national without the proper work authorization is illegal and can result in penalties for you, the employer, under the Ley Orgánica de Movilidad Humana.
• Breach of Privacy: Your home contains sensitive personal and financial information. An unvetted employee could compromise this confidentiality.

The overwhelming majority of domestic workers in Ecuador are honest and reliable. A professional screening process protects both you and them by establishing a clear, lawful, and secure employment relationship from day one.

Navigating the Ecuadorian Legal Framework: Key Laws and Obligations

Your relationship with a domestic employee is governed primarily by three pillars of Ecuadorian law: the Labor Code, the Social Security Law, and specific ministerial agreements.

1. The Código del Trabajo (Labor Code): This is the foundational law governing all employment. A common and costly mistake made by expats is relying on a verbal agreement. While a verbal contract is recognized, Artículo 21 del Código del Trabajo states that if the specific terms are not proven, it is presumed to be a contrato a tiempo indefinido (indefinite-term contract). This makes termination complex and expensive, requiring significant severance pay (desahucio and indemnización por despido intempestivo). A written contract is mandatory.
2. The Ley de Seguridad Social (Social Security Law): This law mandates that every employee, including part-time domestic staff, must be affiliated with the Instituto Ecuatoriano de Seguridad Social (IESS) from their first day of work. Failure to do so is one of the most serious compliance violations and can lead to hefty fines (multas) and orders to pay all accrued back-payments (retroactivos) for the entire period of employment.
3. Acuerdos Ministeriales (Ministerial Agreements): The Ministry of Labor issues annual agreements that set the Salario Básico Unificado (SBU), or unified basic salary. For 2024, this was set by Acuerdo Ministerial MDT-2023-175 at $460 per month. This figure is the legal minimum for a full-time employee and serves as the basis for calculating IESS contributions, overtime, and mandatory annual bonuses.

A Step-by-Step Guide to Conducting a Thorough Background Check

Follow this structured process to ensure you are hiring responsibly and legally.

1. The Application and In-Depth Interview

Start with a formal application that collects full name, cédula (national ID) number, address, and a detailed employment history with contact information for references. During the interview, move beyond skills and ask behavioral questions to assess character, reliability, and judgment.

2. Verification of Identity and Legal Status

• Cédula de Ciudadanía: Always request a physical copy of the candidate's Ecuadorian ID card. For foreign nationals, you must obtain a copy of their passport and their valid Ecuadorian visa that permits them to work.
• Work Authorization: Under the Ley Orgánica de Movilidad Humana, it is your responsibility as the employer to verify that a non-Ecuadorian candidate has the legal right to work. Do not assume a residency visa automatically grants this right.

3. The Criminal Record Check (Certificado de Antecedentes Penales)

This is a non-negotiable step. In Ecuador, an individual’s criminal record is not directly accessible by a third party. However, the process is straightforward for the applicant.

• The Process: The applicant must provide you with their Certificado de Antecedentes Penales. This official document is issued by the Ministerio del Interior.
• Hyper-Specific Detail: The applicant can obtain this certificate instantly and for free online through the ministry's official website. Insist on receiving a certificate that is dated within the last 15-30 days to ensure it is current. There is no cost or valid excuse for a candidate not to provide this. A refusal to do so is a major red flag.

4. Rigorous Reference Checks

Contacting previous employers is crucial. Do not accept written letters of recommendation at face value. Call the references and ask specific questions:

• "What were the candidate's exact dates of employment?"
• "Can you describe their primary responsibilities and performance?"
• "Was the candidate reliable, punctual, and honest?"
• "What was the reason for their departure?"
• "Would you rehire them?"

Under Ecuadorian law and custom, it is standard practice to ask for and provide such references.

The Most Common (and Costly) Expat Pitfalls

• "Hiring Under the Table": Paying cash without a contract or IESS affiliation is illegal. It may seem simpler, but if the relationship sours, the employee can report you to the Ministerio del Trabajo. You will likely be forced to pay all back-due IESS contributions, fines, and any unpaid benefits like the mandatory décimo tercero (13th month) and décimo (14th month) salaries, and fondos de reserva (reserve funds).
• The Verbal Agreement Trap: As noted, this defaults to an indefinite-term contract, stripping you of flexibility and exposing you to high severance costs. Always have a lawyer draft a proper fixed-term (plazo fijo) or specific-task (obra cierta) contract if appropriate for the situation.
• Misunderstanding IESS Registration: You, the employer, must obtain an employer code (código de empleador) from IESS. Once you have it, you must register your new employee online via the IESS portal by submitting an Aviso de Entrada (Notice of Entry) on or before their first day of work. This is not the employee's responsibility; it is yours.

Legal Checklist for Hiring Domestic Staff

1. [ ] Draft a Written Employment Contract: Have it prepared or reviewed by an Ecuadorian attorney. Specify duties, schedule, salary (at or above the current SBU of $460 for full-time work), and contract term.
2. [ ] Verify Identity: Obtain and file a copy of the employee's Cédula de Ciudadanía or passport/visa.
3. [ ] Obtain Criminal Record Certificate: Receive a recently issued Certificado de Antecedentes Penales.
4. [ ] Conduct and Document Reference Checks: Call at least two previous employers.
5. [ ] Register with IESS: Obtain your employer code and submit the Aviso de Entrada for your employee by Day 1.
6. [ ] Set Up a Payroll System: Ensure you are prepared to correctly calculate and pay the monthly salary, IESS contributions, and set aside funds for the legally mandated décimos and other benefits.

⚠️ Legal Alert: When to Immediately Consult an Attorney

Hiring an attorney is not an expense; it is an investment in protection. A typical consultation and drafting of a standard domestic employment contract may cost between $80 and $150, a fraction of the potential fines for non-compliance. Seek immediate legal counsel if:

• A candidate is hesitant to provide a cédula or a current criminal record check.
• You are hiring a foreign national and are unsure of their work authorization status.
• The reference checks reveal troubling inconsistencies or negative information.
• You are unfamiliar with the process of registering with IESS or calculating mandatory benefits.
• You need to terminate an employment relationship for any reason.

Conclusion: Protect Your Peace of Mind Through Compliance

Hiring domestic help is a transaction built on trust, but that trust must be verified through a professional and legally compliant process. By understanding and adhering to the specifics of the Código del Trabajo and the Ley de Seguridad Social, you protect your family, your assets, and your peace of mind. A thorough background check and proper legal formalization are the cornerstones of a safe, respectful, and lawful employment relationship in your new Ecuadorian home.