Key Concepts in Employment Law

Classified in Economy

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Wage Slip

With a wage, the employer is obligated to provide the employee a document known as a wage slip, also known as a payroll slip, specifying individual earnings as well as deductions.

Contribution Base

The contribution base is an amount calculated in relation to workers' salaries, on which tax rates apply for contributions to be deducted from the payroll.

Perceptions (Non-Wage Benefits)

Perceptions are non-wage benefits characterized by being excluded from social security contributions, provided they do not exceed certain limits. The excess over the set limits is computed on the basis of social security contributions.

Permanent Displacement

Permanent displacement occurs when a worker is assigned to a workplace in the same company requiring a permanent change of residence, or when temporary displacement exceeds twelve months in a three-year period.

Temporary Displacement

Temporary displacement consists of a temporary change in the workplace to a different location from the worker's habitual residence. The maximum duration is 12 months in a period of three years.

Substantial Modifications

Substantial modifications are considered those significantly affecting areas such as:

  • Working hours
  • Shift work arrangements
  • Compensation systems
  • Work systems and performance
  • Features, where the change exceeds the limits of functional mobility

Employment Contract Suspension

Suspension means the temporary cessation of the employment contract, where the working relationship is paused without terminating the contract between the company and the employee.

Extinction of Employment

Extinction of employment is the completion of the employment relationship between employer and employee, ending obligations for both parties.

Collective Redundancy

Collective redundancy occurs when the termination of employment contracts is based on economic, technical, organizational, or production reasons, or results from force majeure that definitively prevents the continuity of the business.

Social Security

Social security aims to ensure that workers and their relatives or dependents receive adequate protection in situations of need, such as sickness, accident, retirement, unemployment, etc.

Unemployment

Unemployment refers to the situation faced by individuals who are able and willing to work but lose their jobs or see their working hours reduced by at least one third, with a corresponding loss or reduction of wages.

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