Characteristics of a Good Employment Contract

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A contract is an agreement in which several parties define rights and obligations on a certain point. An employment contract is a document in which the worker and the employer agree on the conditions for the provision of a service and for its remuneration.

The employment contract generates rights and obligations for both the worker and the employer. On the one hand, the employee agrees to perform a certain task under dependency and subordination, on the other, the employer is obliged to pay compensation.

By law, all employees or workers of a company must have an employment contract that certifies that they work for it, otherwise the company may be sanctioned. The characteristics of the employment contract or employment contract vary depending on its duration and the purpose for which it's drawn up.

Types of Employment Contract

The different types of employment contract may vary according to the labor legislation of each country, however, among the most common we can name:

1) Permanent Contract. This employment contract does not establish limits on its duration and remains in force until the employee or the company decides to end it. It can be verbal or written. The fact that it's called indefinite has nothing to do with whether it's full-time or part-time, an indefinite contract can also be for the provision of a fixed or discontinuous service.

2) Fixed-term contract. These contracts have their origin in the execution of works or services that by their nature are executed in a limited period of time within the activities of the company. A typical case is the interim contract that originates from the temporary replacement of a worker. They are also common when a company has excess orders or a large backlog of pending tasks and hires the worker to solve these specific situations.

3) Part-time contracts. In this type of employment contract, the service provision time is established by hours (per day, per week, per month or per year). The working hours are shorter than full-time, for example, a 20-hour weekly work contract. These part-time contracts can be permanent or for a fixed duration.

4) Training, internship or initial training contract. It's intended for a worker to train for a trade in a theoretical and practical way in their job. These contracts are designed to encourage the hiring of young people and achieve insertion into the world of work. In this way, young people complete their academic training while putting what they have learned into practice and perfecting themselves on the job.

5) Other types of contracts. According to the different needs, the legislators of each country establish more specific contract modalities and with particular characteristics, this is the case of contracts for research aimed specifically at scientists, contracts for people with disabilities, or relief contracts to replace partially retired workers.

Characteristics of an Good Employment Contract

A good employment contract must consider important details and information such as:

1) Form and duration. Employment contracts can be verbal or written and the term can be indefinite or for a specified duration.

2) Identification. Every employment contract must clearly identify the parties involved in it.

3) Company address. This must be identified in the contract, failing which the employer's address and the place where the worker carry out the activities for which he was hired may be indicated.

4) Salary. The employment contract must contain a description of the salary amount, salary components and payment frequency.

5) Working hours and Holidays. Description of the duration of the working hours and the holidays corresponding to the worker

6) Date. The employment contract must contain the date of commencement of the employment relationship and, if it's of a certain time, it must contain the duration of the same.

Legal Characteristics of Employment Contracts

Every employment contract is:

  • Consensual: it's perfected by the consent of the parties.
  • Directed: it's regulated by the state through the legislator of each country.
  • Onerous: these contracts are based on the mutual benefit of both parties.
  • Commutative: both parties are equally bound, no obligation is more valid than the other.
  • Private law: regulates a legal relationship between individuals.
  • Bilateral: this contract generates obligations for both parties.

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