Employment Contracts, Dismissals, and Employee Representation
Types of Employment Contracts
- Permanent Contract: An indefinite-term employment agreement.
- Fixed-Term Contract: An agreement for a specific duration or project.
- Indefinite-Term Discontinuous Contract: For work that is permanent but performed intermittently (e.g., seasonal work, or specific to construction).
- Temporary Training Contracts:
- Internship Contract: For practical experience related to studies.
- Apprenticeship Contract: Combines work and training for qualified professionals.
- Contract for Production Circumstances: Addresses temporary increases in workload or market demands.
- Contract for a Specific Work or Service: Tied to the completion of a defined project.
- Interim Contracts:
- Substitution Contract: To replace an absent employee with a right to return.
- Vacancy Contract: To cover a vacant position during selection processes.
- Substitution Contract (Early Retirement): To replace an employee who has partially retired early.
- Relay Contract: Used to replace an employee who is partially retiring, allowing the new employee to work part-time.
Elements of an Employment Contract
Essential Elements
- Consent: Mutual agreement between parties.
- Object: The work performed and the remuneration received.
- Cause: The legal reason for the contract’s existence.
Parties Involved
- Employee: The worker providing services.
- Employer: The individual or entity hiring the worker.
Formal Requirements
Form: An employment contract may be concluded in writing or verbally, though written form is often required for specific contract types or for evidentiary purposes.
Compensation for Individual Dismissals
- Disciplinary Dismissal (Fair): No right to compensation.
- Unfair Disciplinary Dismissal: 45 days’ salary per year of service, up to 42 months’ salary.
- Objective Dismissal (Fair): 20 days’ salary per year of service, up to 12 months’ salary.
- Unfair Objective Dismissal: 45 days’ salary per year of service, up to 42 months’ salary.
- Unfair Objective Dismissal (Indefinite-Term Construction Contract): 33 days’ salary per year of service, up to 24 months’ salary.
Object of the Employment Contract
The object of an employment contract is the work performed under specific conditions: it must be personal, voluntary, performed for an employer, and characterized by dependency (subordination). This work is performed in exchange for a salary.
Furthermore, the object of the contract must be possible, lawful, and determined.
Understanding Company Vision
A company’s vision refers to the desired future image and aspirations of the organization. It articulates what the company aims to become.
The vision is typically formulated by the leadership, who must assess and incorporate the aspirations of various stakeholders, both internal (employees, management) and external (customers, investors, community).
It is created by projecting an ideal future image and articulating a shared dream for what the company should be. This vision, once defined, serves as a guiding principle for all actions and decisions, making it easier to clarify doubts and ensure consistency across the organization.
Employee Representation in the Workplace
Employee representation structures ensure workers’ voices are heard within a company. Key roles include:
Union Delegate (Steward)
- Represents a specific union section within a company or workplace.
- Typically found in workplaces with more than 250 employees.
- Acts as a direct link between the union and the employees.
Staff Representatives (Personnel Delegates)
- Represent the workers before the employer in workplaces with 11 to 49 employees.
- They act jointly and make decisions by majority vote.
Works Council Members (Company Committee Members)
- Members of a collegiate representative body in workplaces with at least 50 employees.
- They adopt their decisions by majority vote.
All delegates and committee members are elected by all workers through personal, free, direct, and secret suffrage.
Understanding Value Added
Value added represents the wealth generated by a company’s activity over a specific period. It is measured by the difference between the value of goods and services produced and the purchase value of external acquisitions (e.g., raw materials, external services).
This generated value is subsequently distributed among various stakeholders, including employees (salaries), lenders (interest), shareholders (dividends), the state (taxes), and the entity itself (retained earnings or self-financing).