Employment Contracts: Rights, Obligations, and Regulations
Employment Contracts
The employment contract manifests the will of the parties, worker and employer. It can be defined as the agreement between them by which the worker agrees to provide services under the direction of the employer. Workers are individuals who voluntarily carry out their work under the guidance of manager-entrepreneurs. Employers can be physical or legal persons; natural persons and individual entrepreneurs are legal societies in their various classes: civil, commercial, and foundations.
Capacity to Contract
Workers and employers must have the capacity to contract. People over 18, emancipated minors under 18, people over 16 and under 18 (if they live independently or have parental permission), and foreigners (subject to specific legislation) have the capacity to be employed. A work and residence permit is required for non-EU workers. An entrepreneur can be a natural or legal person and acquires this status by registration in the commercial register. The ability to be an entrepreneur as an individual is determined by birth, and the capacity to act is determined by the age of majority or emancipation.
Contents of the Work Contract
The following contracts should be in writing:
- Homework contracts
- Contracts for a particular work or service
- Integration contracts
- Contracts for training practices
- Part-time contracts for a fixed period lasting more than four months
Probationary Period
The probationary period is a duration determined and agreed upon by the worker and the employer to prove to both the convenience of recruitment. If a trial period is agreed upon, it must be done in writing, and its duration must be in accordance with the limits set in the collective agreements.
Essential Elements of a Contract
- Consent: The contract must be mutually agreed upon and freely given by the parties involved (worker and employer).
- Object: This is the activity of the worker, for which they are paid a salary.
- Cause: This is the assignment paid in return for work, in exchange for a fee.
Activities Excluded from Labor Law
- Work performed by civil servants
- Mandatory personal benefits of local councils (may exist in cases of emergency)
- Family workers, unless it is shown that they are employees (considered family if they always live with the employer’s spouse, descendants, and other relatives)
- Council activity or membership in administrative bodies of a society, if they always perform other functions
Special Employment Relationships
- Artists in public performances
- Domestic servants
- Senior management staff
- Professional sportsmen
- Trade representatives
- Individuals with disabilities in special employment centers
- Convicts in prisons
Rights and Duties
Basic Rights
- Participation in the company
- Collective bargaining
- Freedom of association
Rights at Work
- Effective occupation of the post
- Prompt salary collection
- Promotion and training at work
Obligations in the Employment Relationship
- Not competing with the activity of the company
- Meeting the orders and instructions of the employer
- Observing safety and health measures
- Contributing to improved business productivity
- Complying with the requirements of the job in good faith and diligence
Employer’s Liability for Hiring
- The employer must affiliate the worker with Social Security.
- The employer must notify the INEM (National Institute of Employment) within ten days of the recruitment of all contracts made in writing.
- Employers are obliged to contribute to Social Security for the hired worker.
Temporary Employment
A temporary employment agency is one whose activity is to provide or make available to another company (called the client or user company) temporary workers for recruitment. These temporary employment agencies are regulated by most European Union countries.