Definition of

Employment contract

Employment relationship

An employment contract regulates an employment relationship.

A contract is an agreement that two or more parties establish to determine the rights and obligations regarding a certain matter. The idea of ​​work , for its part, can refer to the activity that is carried out in exchange for remuneration .

An employment contract , therefore, is a document that regulates the employment relationship between employers and workers . Employment contracts can be individual or collective.

Individual employment contract

In the case of an individual employment contract , it details that a natural person (the worker) assumes the commitment to perform certain tasks for a legal or natural person (the employer), under dependence and subordination of the latter. The employer, in turn, assumes the obligation to pay a certain remuneration for said tasks.

Suppose a young man is hired as an administrative employee by a telephone company . Before beginning to carry out his tasks, the boy signs an employment contract with a representative of the company, which states that the employee must carry out administrative work from Monday to Friday from 9 a.m. to 5 p.m. and that the employer will compensate him with a gross salary of 1000 dollars per month.

The employment relationship ends when the employment contract is void. This can happen when the employer decides, unilaterally, to terminate said contract, whether invoking a cause or not. The worker, in this case, is fired. Another possibility is the termination of the employment contract, which means the disappearance of the agreed obligations and rights .

Agreement

The employment contract can be individual or collective.

Collective agreement

A collective bargaining agreement , for its part, is an agreement established by one or more employers with one or more unions to establish certain conditions that must be respected in labor relations.

These contracts can cover issues such as wages, working hours and vacations .

Types of employment contract

Permanent contract

This is not limited to a specific period of time, but rather provides for a continuous provision of services by the employee to the employer until one of the two parties decides to end the collaboration. Since it offers bonuses that aim to encourage access to work for various groups, companies also benefit from opting for this type of contract.

It should be noted that in order to enjoy these benefits, it is necessary that companies do not have any type of debt from the tax administration or social security.

Temporary contract

At first glance, this type of contract is opposite to the previous one, since it does establish a time limit for collaboration, the maximum duration being three years, which can be extended for one more.

In this case there is the following subdivision:

* of a specific work or service : the employee undertakes to carry out a well-defined job autonomously;

* eventual : it is prepared to resolve production issues, such as excess demand that the permanent workforce cannot satisfy;

* Internship : used to replace employees for different reasons, such as vacations.

Training and apprenticeship contract

As its name indicates, its objective is to train the worker in a paid work regime for a certain period of time. One of the main requirements for the employee is to be between 16 and 25 years old, although if the unemployment rate is below 15% the age range can be extended to 30 years old.

Internship contract

It allows workers who have completed their studies within the four years prior to the date of the contract to carry out an experience in a company for a maximum period of two years, either full -time or part-time, receiving a salary that is usually around 60% of what permanent employees earn.