Understanding Employment Contracts: Types and Clauses
Understanding Employment Contracts
Exceptions
- Special Industrial Relations: Directing personnel, professional athletes, etc.
- Relationships That Do Not Apply: Public functions, personal services, etc.
The Contract
It is an agreement between the worker and the employer, where the employee provides services to the employer in exchange for a wage.
The Worker
- Age: Cannot be less than 16 years old. Between 16 and 17, parental permission is required. Minors cannot work overtime or in unhealthy conditions.
- Disability: Physical or psychological reasons may lead to a declaration of unfitness for work.
- Titration: Certain activities require a specific degree.
- Nationality: Any EU citizen has the right to free movement.
Elements of the Employment Contract
- Consent: The worker accepts the employer’s proposal.
- Purpose: The objective of the contract.
- Cause: The employer receives work, and the worker receives a salary.
The Form of the Contract
The contract must be made in writing. After 4 weeks, if not in writing, it is assumed to be an indefinite and full-time contract.
Probationary Period
The probationary period must be in writing. If not, it is assumed to not exist. It cannot be longer than 6 months and counts towards seniority.
Covenants of the Contract
- Full-time: The worker cannot provide services to another company.
- Permanence: The worker is to develop a specific job.
- Non-competition: The worker cannot perform the same activity as self-employment.
Validity of the Contract
- Severability: It can be resolved.
- Total Nullity: It cannot be resolved and must be repeated.
Types of Contracts
Permanent, temporary, and mixed.
Temporary Contracts
- Training: For trainees and training contracts.
- Fixed Period: For specific work or service, due to ‘circumstances of production’ or interim.
Indefinite Contracts
Occurs in companies with overwork.
- Part-time Contracts: A certain number of hours less than full-time.
- Partial Retirement: Requires a minimum age of 60 years, 30 years of contributions, and 6 years of seniority in the same company.
- Work by Temporary Work Agency (TWA): Exists in the first job:
- Duration: Indefinite.
- Form: Written.
- Probationary Period: No more than 4 months.
- Salary: Same as other workers.
- Indemnity: Twelve days’ wages.
- Social Obligations: Contribution.
Internship Contracts
- Cannot exceed 4 years from the completion of studies.
- Duration: 6 months to 2 years.
- Working Hours: Full-time.
- Probationary Period: No more than 2 months.
- Salary: 60% of the standard salary for the first year, and never below 75% of the Minimum Interprofessional Wage (SMI) after that.
- Form: Written.
- Certification: The employer must provide a certificate stating the duration of the internship.
- Information: The employer must inform about the work.