Employment Contracts: Definitions, Parties, and Types

Understanding Employment Contracts

A contract, in general, is an agreement between two or more parties on a certain subject or facts. An employment contract is an agreement to provide labor in exchange for money. The employment status of workers is regulated to meet specific characteristics: personal, voluntary, dependent, and paid.

Key Parties in an Employment Contract

The Employee

Any individual able to work. Exceptions include:

• Age: Individuals under 16 cannot work, except for participating in public performances authorized by the labor authority.
• Disability: A person may be declared disabled due to physical, mental, or other reasons.
• Qualifications: Certain jobs require specific degrees or certifications.
• Nationality: EU citizens have freedom of movement and the same rights as natives. Citizens of other nationalities require a work permit.

The Employer (Entrepreneur)

There are three types:

• Individuals: Must be 18 years or older, or 16 years if emancipated and not declared disabled.
• Legal Entities: Legally recognized entities that can assume rights and obligations in their own name. Examples include limited companies, corporations, and neighborhood associations.
• Temporary Employment Agencies (ETT): Legal entities mentioned separately due to their significant role in today's workplace.

Essential Elements of Any Contract

There are always three essential elements: consent, object, and cause.

Components of an Employment Contract

• Identity of the parties.
• Category, professional group, or description of the job.
• Address of the company and the workplace.
• Work center/establishment.
• Predictable start date and duration.
• Probationary period, if applicable.
• Salary, including all accessories and the payment period.
• Annual leave/vacation.
• Notice period in the event of contract termination.
• Applicable collective bargaining agreement.
• Signatures.

Specific Types of Employment Contracts

Contracts with Temporary Employment Agencies (ETT)

Features of contracts between an ETT and a worker:

• Duration: Permanent or temporary, but never shorter than the corresponding legal provision.
• Form: Written.
• Probationary Period: No more than 4 months for graduates, or 45 days for non-graduates. Unskilled workers' probationary period cannot exceed 15 days. There cannot be two probationary periods for the same job in the same company.
• Salary: The worker must receive the same salary as a direct employee of the client company performing the same job.
• Compensation: Equivalent to 12 days per year worked.
• Social Security Obligations: Levied by the ETT.
• Training: The ETT must train workers on occupational hazards.

Group Work Contracts

Concluded between the company and any group of workers.

Telecommuting Contracts

When the work is performed by the employee from their home.

Contracts for Accredited Victims of Domestic Violence

These contracts may include Social Security bonuses.

Replacement Contracts for Anticipated Retirement

Occur when a worker advances their retirement to age 64.