Employment Contract Essentials: Parties, Terms, and Content

The Employment Contract Explained

An employment contract is an agreement between two parties where one (the worker) undertakes to provide specific services under the direction of the other (the employer) in return for compensation.

Parties in an Employment Contract

Defining the Worker

Workers are individuals who voluntarily perform work within the organization and under the direction of an employer, receiving a wage in return for the results of their labor.

Worker Eligibility and Restrictions

The capacity to be recruited as a worker applies to:

• Individuals older than eighteen.
• Individuals under eighteen who are legally emancipated.
• Individuals over sixteen and under eighteen, provided they live independently or have permission from parents or legal guardians.
• Foreign nationals, in accordance with specific legislation regarding work and residence permits (especially for non-EU workers).

Note: Although individuals can enter the workforce at sixteen, those under eighteen are prohibited from performing night work, dangerous or unhealthy tasks, and overtime.

Exceptionally, individuals under sixteen may participate in public performances, provided the work does not harm their health or professional/personal development, and written permission from labor authorities is obtained.

Defining the Employer

Employers can be individuals, legal persons (like corporations), or communities of property. Legal personality for entities is typically acquired through the Commercial Registration of the deed of incorporation. The capacity to act as an employer for an individual is acquired by birth, and the capacity to act legally is generally acquired upon reaching the age of majority or through emancipation.

Key Elements of an Employment Contract

• Consent (Signature): The contract is formed by the mutual and freely given consent of the parties involved (employer and employee).
• Object (Task): This refers to the worker's activity or service, which is compensated through a salary or wage.
• Cause (Result): This is the paid transfer of the results or fruits stemming from the work performed.

Form and Content Requirements

An employment contract may be concluded either in writing or verbally.

When Written Contracts Are Mandatory

Certain contracts must be in writing, including:

• Contracts for practical training and apprenticeships.
• Contracts aimed at promoting permanent employment.

Minimum Content for Written Contracts

All written employment contracts should include at least the following information:

• Place and date of the agreement.
• Identification details of both parties (employer and employee).
• Job title or category.
• Workplace location.
• Working hours/schedule.
• Duration of the contract and the start date of employment.
• Probationary period, if applicable (si hubiese).
• Compensation details (salary/wage).
• Vacation entitlement.
• Notice period required by both parties for contract termination.
• Reference to the collective bargaining agreement governing the employment relationship, if any.
• Signatures of both parties.
• Any other clauses agreed upon by the parties.