Labor Code Essentials: Employment Contracts & Worker Rights

Who Does Not Apply to the Labor Code?

Article 23. This Code does not apply to directors, managers, administrators, and other executives of the company who, due to their representative character, the importance of their salaries, the nature of their work, and their technical ability, enjoy remarkable independence in their work. In all cases where elements of subordination predominate, the provisions of this Code shall apply.

Object of the Work Contract

Article 29. The contract referred to in this Title pertains to any work performed for and under external dependence, encompassing any service, whether material, intellectual, or mixed, provided under regulated conditions.

The following are not included in the contract regulation established by this Code:

• a) Work of a familial nature, where only individuals occupied by their family or accepted under the protection of one of its members are involved, provided that they are not employees; and
• b) Work, though not familial, occasionally performed as a friendly service or good neighborliness.

Capacity for Employment Contracts

Article 35. Minors of either sex who have attained eighteen years of age, and married women, shall have full capacity to enter into an employment contract, receive payments for themselves, and perform actions under the contract or the law, without needing authorization. Freedom to contract for those over eighteen years of age does not imply their emancipation.

Labor Remuneration

Article 12. All work must be paid. Its gratuity is not presumed.

Ways of Formalizing an Employment Contract

Article 43. An employment contract, regarding its form of celebration, can be verbal or written.

When is an Oral Contract Permitted?

Article 44. An oral contract may be concluded verbally when it concerns:

• a) Domestic service;
• b) Accidental or temporary work not exceeding ninety days;
• c) Specific work whose value does not exceed the limit set in the previous article, second paragraph.

When is a Written Contract Required?

Article 46. A written employment contract must include the following information and provisions:

• a) Date and place of execution;
• b) Names, surnames, age, sex, marital status, profession or occupation, nationality, and domicile of the parties;
• c) Class of work or services to be provided and the place or places of delivery;
• d) Amount, form, and period of payment of the agreed remuneration;
• e) Duration and division of the working day;
• f) Benefits the employer is obliged to provide, such as room, food, and uniforms, and the valuation of their cost;
• g) Stipulations agreed upon by the parties;
• h) Signatures of the contractors or their digital fingerprints if they are unable to sign, in which case this fact shall be indicated, and another person shall sign on their behalf. In the latter case, the document must be attested by a magistrate with jurisdiction, a notary public, or the respective union's general secretary, if applicable.