Guidelines for the Registration of Equity Plans

By Ministerial Agreement No. MDT-2024-013 subscribed on January 19, 2024, the Ministry of Labor issued the following guidelines for the registration of Equity Plans:

• The Ministry of Labor will provide a certificate of registration of the Equity Plan, hereby the “Plan”.
• The employer has the obligation to disseminate and socialize the Plan with its employees for its effective compliance.
• If the Plan should be renewed due to one of the causes established for its mandatory renewal, it must include the reason for the review and update.
• Failure to register the Plan may be reported to the Regional Directorate of Labor and Public Service.
• The “Equity Plan” will be valid for 4 years from the date of registration before the Ministry of Labor. Once the registration period has expired, the employer must carry out a new diagnosis of the situation.
• Failure to comply with the obligation to register the Plan will result in a sanction.
• The registration of Plans must be made from January 20, 2024, to July 31, 2024.

The Agreement is in force since its signing date regardless of its publication in the Official Gazette.

Edmundo Ramos, Partner at CorralRosales
eramos@corralrosales.com
+593 2 2544144