Understanding Labor Relations: Employer, Worker, and Contract Types
Understanding Labor Relations: Key Definitions and Contract Types
Subjects of Article 3: Employer Labor Relations
The employer is defined as the person or entity that utilizes the intellectual or material services of one or more individuals under a contract of employment. These entities can be social, cultural, charitable, and possess a distinct legal identity.
Defining the Worker and Employed Person
- Worker: Any individual who provides personal, intellectual, or material services under dependence or subordination, and under a contract of employment.
- Employed Person: An individual who, in the exercise of their activity, is not dependent on an employer and does not have workers under their control. This employer is considered independent for provisional purposes.
Enterprise Definition
For labor legislation and social security purposes, an enterprise is any organization of personnel, tangible and intangible assets, arranged under a single direction to achieve economic, social, cultural, or charitable goals, and endowed with a particular legal identity.
Labor Contract Classifications (Article 6)
Individual Contract
An individual contract is an agreement between an employer and an employee.
Group Contract
A group contract is concluded between one or more employers with one or more unions or groups of workers who join together to bargain collectively. This establishes common working conditions and wages for a specific time.
Fixed Term Contract
A fixed-term contract has a predetermined duration. Both parties must fulfill their obligations as agreed upon for the specified period.
Contract of Indefinite Duration
A contract of indefinite duration continues throughout the worker’s life. While it appears permanent, it can be terminated by either party through a unilateral declaration. This requires a 30-day notice or payment of remuneration.
Labor Contract Concept (Article 7)
An individual work contract is an agreement where the employer and employee are bound to each other. The employee provides personal service under the dependence and subordination of the employer, and the employer pays a certain remuneration for these services.
Characteristics of an Employment Agreement
An employment agreement in private law is a contract between individuals. It is personal and bilateral, meaning both parties undertake reciprocal obligations. It is onerous, aiming for the utility of both contracting parties and taxed for the benefit of each other. It is commutative, meaning the obligations of the parties are regarded as equivalent, i.e., the compensation received by the worker must be parallel with the work provided. It is a principal contract, subsisting on its own, and is nominated for its individuality. It is precisely directed, a tract with permanent compliance function, and consensual, based on mutual agreement between the parties (Article 9).
The Labor Contract Presumed
This contract, referred to in Article 8 of the Labor Code, states that all services under the terms stated in Article 7 suggest the existence of an employment contract.
Services Not Resulting in an Employment Contract
The following services do not result in an employment contract:
- Trades executed directly to the public.
- Works services that are discontinuous or sporadic.
- Home services provided by graduate students or during practice.
Forms and Formalities of the Employment Agreement
The employment agreement is consensual, meaning it is perfected by mere consent. The obligation to formalize the contract in writing rests with the employer.
The general rule is that the employment contract must be in writing within 15 calendar days. The period is 5 consecutive days from the incorporation of workers in the following cases: contracts for work, labor, or a determined service; contracts whose duration is less than thirty days.
Content of the Contract of Work: Mandatory Minimum Clauses
These clauses must be present in every employment contract. They are listed in Article 10 of the Labour Code and are intended to provide legal certainty and security to the working relationship. These include the contract date and place, nationality, date of birth, and income of the worker, agreed remuneration, duration, and distribution of the workday, etc.