work contract

Y-Negocios

2022

We explain what an employment contract is and the types of contracts that exist. Also, what is the employment contract law and its elements.

The employment contract is a legal agreement between an employer and a worker.

What is an employment contract?

An employment contract is a legal document that formalizes an agreement between an employer (businessman, store owner, organization manager, etc.) and a employee, in which the terms of the employment relationship between them are detailed, that is, the terms according to which the worker will provide their services to the employer, under his direction, and will receive in exchange a salary or monetary compensation.

Said terms must always be given within the provisions of the labor laws of the country or territory where the employment contract is signed. If not, a contract will not be considered valid for the Justice and its fulfillment cannot be legally demanded, that is, it cannot be binding, or oblige those who subscribe to it.

Every employment contract contemplates a series of rights and obligations for both parties involved, which have the dual mission of guaranteeing that the work is carried out in the preconceived and mutually accepted manner, also complying with the labor rights and the protections guaranteed by law for the employee.

Types of employment contract

CCTs tend to have greater laxity on the part of employers.

Employment contracts, in principle, can be of two types:

  • Individual. Those that concern a single person, who agrees to provide subordinate individual work, in exchange for the payment of a pre-agreed salary.
  • Collectives. Also called Collective Labor Contracts (CCT), they are celebrated between a labor union of workers or a professional union, and one or more employers. By covering a more or less broad set of workers, these contracts tend to have greater laxity on the part of employers, since they benefit from mass hiring.

Law employment contract

The labor contract laws of the different countries are legal tools contemplated within the constitutional framework of the nation, in which the legal parameters that regulate the hiring of workers are established.

This is: the body of laws that determine how the contractual hiring of a worker should be given, to guarantee that both parties are supported by the law and that none of the fundamental rights are violated. This type of laws varies by country.

Elements of an employment contract

The employment contract must have the identification of both parties.

All employment contracts must comply with the following elements:

  • The identification of the parties involved: employer and worker (s).
  • The start date of the employment relationship, and the closing date in the case of a temporary employment relationship or its probable duration.
  • The tax domicile of the business, or the place where the company or employer is legally established, since the legal framework behind the contract will be used as the legal framework that exists in this designated territory.
  • The amount of the salary and the supplements that it presents.
  • The duration and distribution of the ordinary working day.
  • The category or professional group in which the work to be performed is registered, as well as the description of the same.
  • The duration of the vacation and the conditions in which it will be enjoyed.
  • The notice periods and the considerations on the interruption of the employment relationship.
  • Applicable collective agreement, if any, as well as the data for identification.
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