Fixed vs. Fixed-Discontinuous Contracts: Key Differences

The fixed periodic contract is considered a part-time contract for an indefinite term, formalized to perform fixed and periodic tasks within the ordinary volume of the company’s activity. The object of this contract relates to different tasks performed on certain dates, specifically during a specific period of the year, on a cyclical basis. In this respect, the start and end of each season are precise dates known by both parties, so employees do not need to be called to work by the employer.

The fixed-discontinuous contract is an indefinite-term agreement formalized to perform jobs of an intermittent nature that do not repeat on certain dates within the ordinary volume of the company’s activity. The start and end of each season are not exact dates because they depend on external factors such as the weather or the volume of demand, so the employees have to wait to be called by the employer.

This contract must be formalized in writing, in the established form, and contain information about the estimated duration of the activity, as well as the manner and order of the call established by the applicable CBA (Collective Bargaining Agreement). The contract should include, for guidance only, the estimated working day and the distribution of its hours. It may be agreed on a full-time or part-time basis.

Fixed-discontinuous workers must be called in the order and manner provided in the applicable CBA. In case of breach of this duty, the worker may bring a lawsuit against the employer in dismissal proceedings before the labor jurisdiction. The term for this action begins when the worker becomes aware of the absence of a call.

Understanding Extra Pays (Bonuses)

Extra pays (or bonuses) are additional components to the basic salary, either in money or in kind. There are three types of extra pays:

• Bonuses depending on the circumstances relating to the personal conditions of the worker. Examples include extra pays regarding seniority, skills, education of the employee, or stock options.
• Bonuses depending on work done.
  1. Extra pays related to the characteristics of the work post. Examples include night work, shift work, or hazard pay.
  2. Bonuses related to a higher amount or quality of work. These try to incentivize the worker to achieve higher levels of productivity or superior dedication to working activities. Examples include attendance bonuses, surcharges for overtime work, or commissions.
• Bonuses depending on the situation and profit and loss account of the company. These try to involve workers in the good course of the business. An example is a gain-sharing bonus.

Consolidation bonuses: These extra pays become permanent for the worker, making their alteration or elimination impossible in case of a change of working conditions.