Employment Contracts: Types, Requirements, and Duration

Posted on Dec 7, 2024 in Law & Jurisprudence

What is an Employment Contract?

It is the agreement between two persons whereby one of them, the worker, agrees to provide certain services under the direction of the other, the employer, receiving guaranteed remuneration in return.

People Involved in the Employment Contract

  • The worker: This is the natural person building on the work.
  • The employer: This is the individual, community, or property receiving services in return for surrendering a salary.

Limits to Recruitment and Work

  • The worker:
    • After 18 years old may be recruited freely.
    • From 16 years old may be employed with the permission of a parent or guardian.
    • Children under 16 cannot work in public entertainment except with the prior authorization of the work.
    • A specific qualification is required for certain jobs, such as doctors or architects.
    • Non-EU foreigners require a work permit, which is given by the Ministry of Labor and Social Affairs. EU citizens can be recruited abroad freely.
  • The employer:
    • May freely contract after 18 years old.
    • From 16 years old may freely contract if emancipated or if a judge grants the age.
    • Children can contract represented by their parents or guardian.

Forms of Contract

  • In writing: Contracts must be in writing when required by a legal provision.
  • Oral: Practically, one can subscribe to two types of verbal contracts:
    • The eventual contract for production circumstances of a duration not exceeding four weeks.
    • Regular permanent contracts.

The Content of a Contract

  • The identity of the parties to the contract.
  • The date at which the employment relationship begins and its duration if temporary.
  • The domicile of the employer and the address where the worker usually provides their services.
  • The professional category or group of jobs performed by the worker or its characterization.
  • The salary and bonuses received.
  • The duration and distribution of the normal working day.
  • The duration of the holiday.
  • The period of time the worker must advise the employer before leaving.
  • The collective agreement to which it belongs.

Trial Period

It is the time period during which either party may terminate the employment relationship without notice or entitlement to compensation.

Features:

  • The trial period should be written into the contract.
  • The maximum duration shall be established by the collective agreement.
  • If there is no established collective agreement:
    • For a technician, the maximum period is 6 months.
    • For other employees, if the company has fewer than 25 workers, it may last 3 months.
    • If the company has over 25 workers, it can take 2 months.

Fixed Term Contracts

These contracts must be in writing. These contracts have a fixed period of time established by the employer.

Training Contracts

These contracts are for acquiring the theoretical and practical training necessary to perform a job.

Requirements:

  • Not having served 21 years old.
  • Not having the requisite qualification.
  • Not having done the job for more than 12 months.
  • Not having reached the maximum established for apprenticeship contracts.
  • It can last between 6 months and 2 years, and by agreement may last 3 or 4 years if disabled.
  • The day must be complete, at which a part will be devoted to theory.
  • The salary will be the minimum inter-professional wage, 624€.

Practical Training Contracts

They relate to the procurement of professional practice appropriate to the level of courses taken by college-educated workers.

Requirements:

  • Having vocational training or university qualification.
  • No more than four years have passed since the completion of studies.
  • The contract may be no less than 6 months nor exceed 2 years.
  • This journey can be full or part-time.
  • The salary shall be fixed by the agreement, but by default cannot be less than 60% or 75% during the first or second contract year, respectively.

Contract for Work or Service

These are contracts for a specific work or service.

  • The contract must be in writing.
  • Its duration will be as necessary to achieve the specified task.
  • You must report if the duration of the contract exceeds one year.

Contract for Production Circumstances

These are contracts to meet the situational demands of the market.

  • The contract can be written or oral if it does not exceed 4 weeks.
  • The maximum duration is 6 months within a period of 12 months.
  • Compensation would be 8 days’ wages per year worked.

Interim Contract

  • The contract must be in writing, identifying the worker replaced and the cause of the replacement.
  • It lasts as long as the right to retain the position of the replaced.

Relief Contract

These are contracts that relieve the person who partially retires.

  • The contract has to be at the employment office.
  • Its duration is whatever is left to be replaced for full retirement, up to 5 years.

Contract for the Unemployed

These are temporary contracts in any form for victims of gender violence or domestic violence.

  • The contract must be in writing.
  • Its duration is the mode for the type of situation.
  • Bonus shares in the business of €41.67 for workers in situations of social exclusion and €50 for the victims of violence.

Employment Assistance for Disabled People

Its goal is to hire temporarily disabled people with a degree equal to or above 33%.

  • Businesses that have recognized or declared unfair dismissal or collective redundancy subsidized contracts of 12 months will be excluded from bonuses in this program.
  • Its duration cannot be less than 12 months nor more than 3 years.
  • The day may be full or part-time.
  • The Company shall be entitled to bonuses that depend on the degree of disability, gender, and age of the disabled person.
  • In case of withdrawal, 15 days’ notice must be given if the contract duration exceeds one year.