Key Aspects of Employment Contracts and Labor Law

Posted on May 3, 2025 in Law & Jurisprudence

Employment Contract Characteristics

  • Voluntary: The worker signs the contract freely.
  • Alienation: The direct results of labor are not owned by the worker but belong to the employer.
  • Remunerated: The employee provides a service (work) in exchange for financial compensation.
  • Personal: The work must be performed personally by the worker.
  • Subordination: The worker operates under the organization and direction of the employer.

Sources of Employment Law

Material Sources (Rule Makers)

These are the individuals or social groups with the power and authority to create legal standards:

  • Constitution of 1978
  • The State (through the courts)
  • Autonomous Communities
  • Representatives of workers and employers
  • Courts

Formal Sources (Types of Rules)

  1. The Constitution.
  2. Laws and regulations with the force of law, approved by the general courts (Congress and Senate):
    • Organic Law
    • Ordinary Law
    • Legislative Decree
    • Law Decree
  3. Regulations, standards developed by the government under its regulatory powers.
  4. Collective Agreements.
  5. Employment Contracts.
  6. Uses and Customs.

Principles of Labor Law Application

  • Principle of Hierarchy: Higher-ranking standards prevail over lower-ranking ones.
  • Principle of In Dubio Pro Operario: When a rule is unclear, the interpretation most favorable to the worker is applied.
  • Principle of the Most Beneficial Condition: If a new rule imposes worse conditions than those already enjoyed under an existing contract, the contract’s more beneficial conditions prevail.
  • Principle of Minimum Standards: Higher-level standards set minimum requirements for workers. Lower-level standards cannot worsen these conditions but can improve them.
  • Principle of Inalienability of Rights: Workers cannot waive the essential rights granted to them by law.

Special Work Organization (Art. 36 Reference)

  • Night Work: Work performed between 10 pm and 6 am. Unless a specific fee is agreed upon, days off may be provided as compensation. Prohibited for individuals under 18.
  • Shift Work: Different workers occupy the same positions at different times over a period of days or weeks.

Work Flexibility Methods

  • Flexibility in contract amount and working time
  • Flexibility in the length of working life
  • Salary flexibility
  • Functional mobility
  • Geographical mobility
  • Productive flexibility

Types of Salary Supplements

Personal Supplements

Derived from the worker’s personal or professional qualifications if not already considered in their basic salary. Examples include:

  • Seniority pay
  • Compensation for specific knowledge (e.g., languages, titles)

Job-Related Supplements

Dependent on the activity performed or the specific characteristics of the job. Examples include:

  • Hazard pay
  • Responsibility bonus
  • Night work supplement
  • Shift work supplement
  • Flexibility bonus
  • Residence supplement

Also includes supplements based on the quantity or quality of work:

  • Incentives
  • Punctuality and attendance bonus
  • Productivity bonus
  • Commissions

Supplements for Company Status or Results

  • Profit Sharing: Worker participation in the actual profits earned by the company (distinct from a standard extra bonus).
  • Company Productivity Bonuses: Linked to the company’s overall productivity.