Decoding Employment Law: Contracts, Standards, and Principles

Sources of Labor Law

Several sources shape labor law, including EU regulations, national constitutions, ILO standards, international treaties, laws, regulations, collective agreements, employment contracts, local customs, and professional practices.

Principle of Primacy

This principle dictates that higher-ranking rules prevail over lower-ranking ones. Lower-level rules cannot contradict superior rules.

Internal Sources

The Constitution

The Constitution holds the highest position in the legal system, prevailing over all other laws. It serves as the foundation for other rules and laws. Key aspects relevant to employment include fundamental rights (Article 28), citizen freedoms, and economic and social principles guiding government policies.

Laws

Laws originate from legislative bodies. Organic laws address fundamental rights and public freedoms, while ordinary laws cover other matters approved by Parliament. The government can issue decree-laws in cases of extraordinary and urgent need, but these cannot affect matters covered by organic laws. Legislative decrees are rules issued by the government under delegated authority from Parliament.

Regulations

Regulations are legal rules subordinate to laws, issued by the government, ministers, or other bodies with regulatory powers.

Collective Agreements

These written agreements, negotiated between worker representatives and employers, regulate working conditions and living standards within companies.

Employment Contracts

These contracts express the will of both parties. Contract terms cannot be less favorable than legal rules or collective agreements.

Local Customs and Professional Practices

These apply only when referenced by law to clarify its provisions. Local customs pertain to specific localities, while professional practices relate to particular industries.

Principles for Applying Labor Standards

Principle of Minimum Standards

Higher minimum standards set the baseline, and lower standards cannot offer worse conditions. Labor standards define a minimum; better conditions can be negotiated, but not worse.

Principle of the Most Favorable Rule

When multiple rules apply, the most favorable to the worker prevails.

Principle of Inalienability of Rights

Workers cannot waive rights granted by law or collective agreements.

Principle of the Most Beneficial Condition

If an employment contract offers worse conditions than previous contracts, the more advantageous conditions prevail.

In dubio pro operario

This principle means that in cases of doubt, courts interpret rules in the worker’s favor.

The Employment Contract

An employment contract formalizes the agreement between a worker and an employer. The worker provides services under the employer’s direction in exchange for remuneration. The parties must be legally capable of entering into a contract (over 18, emancipated minors, or minors over 16 with parental/guardian permission).

Essential Elements

  • Consent: Mutual agreement between both parties.
  • Object: The provision of services by the worker.
  • Cause: The exchange of labor for remuneration.

Contract Form

Contracts can be written or verbal. The Statute of Workers requires written contracts for all except regular permanent and temporary contracts due to production circumstances.

Required Information in Written Contracts

Written contracts must include: place and date, party identification, job title, duration, remuneration, holidays, applicable collective agreement, and signatures. Additional clauses, such as confidentiality, non-competition, and permanency, can be included.