Employment Contracts and Commercial Regulations

Article 46 – Employment Contract Types

The individual employment contract may be:

  • Indefinite: When no specific date for completion.
  • Limited Time: When a specified date for completion is planned or when the occurrence of any event or circumstance, such as the construction of a work, inevitably terminates the employment relationship. In this case, the worker’s activity itself is the object of the contract, not the result of the work.
  • Work or Services: When the price of the worker’s services is adjusted globally or in a lump sum, from the start until the conclusion, considering the outcome of the work.

Even if the worker receives advances, the contract is meant to last as long as they meet the conditions indicated above. The contract lasts until full implementation or total benefit to others. In the absence of an express term, the term established by custom applies.

Article 97 – Worker Obligations

In addition to other articles, regulations, and laws, workers’ obligations include:

  1. Personally perform the work in the stipulated terms, observe the rules, and obey the employer’s orders.
  2. Execute work with efficiency, care, and diligence, in the agreed time, place, and conditions.
  3. Observe good manners and exemplary behavior during service.
  4. Render assistance when needed during disasters or imminent danger.
  5. Integrate agencies established by law and regulations.
  6. Return unused materials and tools in good condition.
  7. Inform the employer of comments to avoid damages.
  8. Keep technical, commercial, and manufacturing secrets.
  9. Comply with hygiene and preventive measures.
  10. Undergo medical examinations as requested.
  11. Vacate employer-provided housing within thirty days of termination, unless new employment is secured.
  12. Not endanger their safety, co-workers, or workplaces.
  13. Meet other obligations under the Code, laws, and work rules.

Article 112 – Just Causes for Termination

Employers can terminate the contract without liability for:

  • Deception by the employee with false certificates.
  • Acts of violence, abuse, or insubordination at work.
  • Serious violence or abuse outside of work against the employer or family.
  • Malicious damage to property or gross negligence.
  • Immoral or criminal acts in the workplace.
  • Disclosure of trade secrets.
  • Criminal sentencing.
  • Absence from work without permission.
  • Refusal to follow safety procedures.
  • Inability or inefficiency of the worker.
  • Incurable infectious disease or mental illness.
  • Violation of obligations or prohibitions.

Constitution – Article 331

The State recognizes and promotes freedoms of consumer savings, investment, employment, enterprise, trade, and industry. These freedoms must not be contrary to public interests or detrimental to morals, health, or public safety.

Commercial Code

Article 363 – Factor’s Operations

Although the main interest is in profits, the factor may not carry out operations not ordered by the principal.

Article 364 – Factor’s Liability

The factor is liable for damages caused by fraud, fault, or negligence, without prejudice to the principal’s direct responsibility.

Article 365 – Traffic Factors

Traffic factors may not operate in their own name or business outside their scope unless authorized. Unauthorized operations can be taken over by the principal within fifteen days.

Article 355 – Legal Factors

Factors with the address of a company or establishment are considered legal factors.

Article 371 – Dependents

Articles 363, 364, and 365 apply to dependents.

Civil Code

Item No. 546 – Curators of Goods

Curators of goods are subject to restrictions on guardians and can only perform administrative acts of custody, preservation, recovery of claims, and payment of debts.

Item No. 1426 – Obligations to Do

In obligations to do, the creditor cannot be compelled to receive service from others if the debtor’s qualities were considered when establishing the obligation.