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.