Understanding Key Labor Law Principles
Labor Law
Concept
Labor law is an autonomous branch of law focused on labor relations and the general principles that guide and define its purpose.
Definition
It is the legal regulation of work performed as an employee in a position of subordination and dependency.
Importance
Personal and spiritual development often depends on work and labor relations. Human labor can be independent or dependent. In the latter case, it is governed by the Labor Code (administrative statutes, municipal finance laws, health official statutes). The scope of labor law is determined by Article 1 of the Labor Code, including exceptions and their residual application.
Implementation of Labor Law (Labor Code)
Article 1: Industrial relations between employers and employees are regulated by this code and its complementary laws. These rules do not apply to administrative officials of the state, centralized and decentralized national congress, the judiciary, nor employees of state companies or institutions where such officials or employees are subject to a special legal status. Employees of the entities listed above are subject to this code on matters not covered in their constitutions, provided they do not contradict the latter.
Presumption of Employer Representation
Article 4: This code presumes employer representation when workers are required by the manager, administrator, captain, or general, who normally carries out administrative, managerial, or representative functions for a natural or legal person. Changes in partial possession or control related to company ownership do not alter the rights and obligations arising from individual or collective labor contracts, which remain in force and continuous for new employers. This presumption protects workers from annulments due to alleged lack of standing when hired on behalf of another without authority to agree on wages and working conditions. In cases of disagreement, the discussion should focus on the effectiveness of the contract for the worker if they exercised administrative, managerial, or captain functions.
Subsection 2 refers to the principle of continuity, implying that valid employment contracts and collective instruments are maintained when there is a change in company ownership, possession, or control.
Waiver of Labor Rights
Article 5: Rights established by labor law cannot be waived during the employment contract. Individual and collective contracts can be amended by mutual consent regarding matters that can be freely agreed upon between the parties.
There are two statements:
- The principle of inalienability states that rights granted by labor laws cannot be waived during the employment contract. Our positive law allows the disclaimer of labor rights granted by laws after termination of employment.
- The autonomy of the parties allows them to freely agree on working conditions and salaries that improve upon what labor law states. For example, a contract cannot agree on a salary less than the minimum wage.
Employment Contract
Article 6: An employment contract can be individual or collective. An individual contract is between an employer and an employee. A collective contract is between one or more employers and one or more trade unions or workers who unite for collective bargaining to establish common working conditions and wages for a specific time.
Article 7: An individual employment contract is an agreement where the employer and employee mutually undertake to provide personal services under the dependence and subordination of the former, and the former pays the latter a certain remuneration for these services.
The employment contract is consensual and requires an expression of intent to provide service in exchange for payment. A written contract is not required for its perfection, according to Article 9. The need for a written contract is only related to formalities.
Sanctions for Non-Writing:
- A fine on tax benefits.
- The inversion of the burden of proof. The lack of a written contract will legally presume the terms stated by the employee. A written contract does not invalidate consent, but the employer defaults on the obligation of proof.
Deadlines for Writing:
- General rule: 15 days from the worker’s incorporation into the company.
- Exception: 5 days for a work contract or service contract with a duration of fewer than 30 days. In these cases, the contract must be written within the first 5 days after incorporation.
Contract Amendments:
Any changes to the employment contract must be in writing and signed by the parties on the back of the contract copies or an annex. Pay adjustments do not require a written modification.
Overtime:
Overtime must be agreed upon in writing in the work contract or a subsequent act. In the absence of a written agreement, hours worked in excess of the regular workday are considered overtime, but only if agreed to by the employer.