Labor Law and Employment Contracts: Rights and Duties
UNIT 1: Labor Law
1. Labor Law
2. Sources of Labor Law
3. Principles of Labor Law Application
4. Rights and Duties of Workers
5. The Employment Contract
6. Types of Employment Contracts
1. Labor Law
1.1 Origins
Labor law emerged in the nineteenth century as a response to economic and social problems arising from the Industrial Revolution (18-hour workdays, no weekly rest, holidays, etc.) and the desire to protect the weakest part of the employment relationship: the worker.
1.2 Definition
Labor law is a branch of law that governs labor relations established between the employer and the employed persons.
Not all jobs are covered by labor law.
1.3 Characteristics of Employment
The Workers’ Statute qualifies employment as one that has the following characteristics:
- Personal
- Voluntary
- Being employed
- Paid
- Dependent
Any working relationship that meets these five conditions is considered an ordinary employment relationship.
2. Sources of Labor Law
2.1 National Sources
Labor standards are rank-ordered according to the following hierarchy:
- Constitution
- Act
- Ordinary law, Decree Law, Legislative Decree
- Regulations
- Collective Agreement
- Contract work
- Local usage and professional
The Workers’ Charter (ET) is the rule regulating the basics of employment, approved by Royal Decree 1/1995 of March 24.
2.2 International Sources
The international labor law sources are:
- Regulations and directives of the European Union
- Conventions of the International Labor Organization
- International Treaties
3. Principles of Labor Law Application
According to the principle of hierarchy, the rules of a higher precedence over those of lower rank, so a lower-ranking rule cannot contradict another of equal or higher rank. In response to this condition, the following principles should apply:
- Principle of the most favorable rule: If two or more rules can be applied to a case, the one that is most favorable to the worker as a whole will apply.
- Principle in dubio pro operario: If a rule is unclear and may have different interpretations, the one that favors the worker the most will apply.
- Principle of the most beneficial condition: If, after adopting a rule that states, in general, worse conditions than those enjoyed under a contract, the contract shall prevail as the most beneficial.
- Principle of inalienability of rights: Workers cannot waive the rights granted to them by the rules.
4. Labor Rights and Duties
In labor relations, workers have the following rights and duties:
RIGHTS
- Effective occupation, i.e., the employer is obliged to provide work to the worker.
- Promotion and training at work.
- Non-discrimination, both at the time of recruitment and once employed, for reasons of sex, marital status, religion, race, etc.
- Physical integrity and a proper security policy and occupational health.
- Respect for privacy and due regard to dignity.
- Timely receipt of wages.
DUTIES
- Honor the obligations of the job under the rules of good faith and diligence.
- Observe health and safety measures taken.
- Comply with orders and instructions of the employer, as they relate to job performance.
- Not make unfair competition to the company.
- Contributing to the improvement of productivity.
5. The Employment Contract
5.1 Definition
The employment contract is an agreement by which the worker is obliged to provide their labor services, and the employer, who receives such services, is obliged to pay them. Subjects who agree to the contract are, therefore, the worker and the employer. The contract determines the professional aspects of the worker, the duration of the working day or working time, the pay the employee will receive, and where they will work.
5.2 Capacity to Contract
- Worker: To be able to sign an employment contract, one must be a natural person and fulfill any of the following requirements:
- a) Be an adult (18 years).
- b) Be 16 or 17 years old and have the authorization of parents.
- c) Be emancipated.
- d) As an exception, those under 16 years may work in public performances with prior permission from the workplace.
- Employer: Can be:
- a) An individual, adult, or emancipated.
- b) A legal person.
- c) A community property.
5.3 Essential Elements of the Employment Contract
In all contracts, there are three essential elements without which it would not be valid:
- Consent: Expression of the will of the parties to conclude an agreement or contract. It may be express or implied, and it is void if provided with violence, intimidation, or fraud.
- Object: It should be possible, lawful, and determined.
- Cause: Must be true and lawful.
5.4 Form, Duration, and Trial Period
- Form: The form of the employment contract can be written or verbal. Currently, all are written except:
- Regular indefinite contract.
- Contract for production circumstances, full-time, whose duration is less than four weeks.
- Duration:
- Indefinite
- Determined
- Probationary period: This is the period during which either party (employee or employer) may terminate the employment relationship without notice or right to compensation. It must be in writing. The maximum duration shall be as established in the collective agreement. If not set, the duration should not exceed the requirements specified in ART14 ET.
- 1. Technical graduates: 6 months.
- 2. Rest of workers:
- 3 months in companies with fewer than 25 workers.
- 2 months in enterprises with 25 or more workers.
6. Types of Employment Contracts
- Indefinite contracts:
- Ordinary indefinite.
- Indefinite contracts under the program to promote employment.
- Temporary contracts:
- Training:
- Training contract
- Contract practices
- For the type of work to be done:
- Contract work or service
- Interim contract
- Eventual production circumstances
- Temporary subsidized contracts.
- Training:
- The relief contract and part-time contract may be permanent or temporary.
UNIT 2: The Payroll and Working Time
1. The Salary
2. The Payroll
3. Working Time
4. Rest Time
1. The Salary
1.1 Concept
The salary is the payment that the employer pays the employee as compensation for labor services they receive from them. The receipt of wages is the primary right of the worker and the employer’s basic obligation.
It is considered salary:
- The work done
- The days of rest required
1.2 Structure of Wages
The wage structure is determined by the collective agreement or the employment contract itself. All wages must at least include:
- Base salary: Also called fixed or guaranteed, it is the payment to be paid at least to every worker by category or professional group.
- Supplementary payments: Amounts in addition to the basic wage set in response to various circumstances.
Plugins can be:
- Personal: ancient, languages, titles, plus convention, etc.
- From workplace: hazard, night, plus dealing with the public, plus expatriate, etc.
- For company performance: profit sharing, bonus extras, bonus, incentive, etc.
1.3 Classes of Wages
As the means of payment used:
- Pay in cash: The wage paid with money, legal tender in Spain, i.e., in euros. It is the most common form of wage payment.
- Wages in kind: A portion of wages is paid in goods. For example, using a company car for private use. It cannot exceed 30% of total labor perceptions.
- Fixed perceptions: They are quantities that do not change, such as base salary plus or old.
- Variable perceptions: Vary depending on the worker’s performance or other factors. For example, an additional payment for punctuality or productivity that is gained only when you reach certain levels.
1.4 Minimum Interprofessional Wage
The Spanish Constitution states that all persons are entitled to a remuneration that is sufficient to meet their needs and those of their family, but in no case can there be sex discrimination. The Government sets annually the minimum wage (SMI), which is the minimum payment required to charge all employees. This wage is fixed in consultation with trade unions and the most representative business associations.
The salary is protected by the following guarantees:
- SMI-undistrainable
- Privilege of wage claims
- Wage Guarantee Fund (FOGASA)
2. The Payroll
Concept and Structure
This is the document by which the payment is credited to the employee’s salary. Also called wage statements.
The list is divided into four parts:
- Heading: Should contain details of the company and the worker.
- Accruals:
- Salary perceptions: basic salary, seniority, bonuses, etc.
- Non-wage: per diem, plus transportation, scholarships for children, etc.
- Deductions:
- Contributions to Social Security
- Personal Income Tax Withholding tax
- Determination of the contribution bases for the Social Security and the base subject to personal income tax.
3. Working Time
3.1 The Working Day
It is the number of hours on a daily, weekly, or yearly basis the worker provides services for those who have been invited. The starting time is called when there are breaks; otherwise, it is called continuous. Duration:
- Week-day: up to 9 hours of actual work.
- Day Week: 40 hours of annual average.
3.2 Overtime
These are the hours of actual work taking place on the duration of the ordinary working day. They are voluntary unless they are by agreement or force majeure. They must not exceed 80 hours per year and can be compensated with money or rest periods.
3.3 Work Shifts and Night Work
- Night work: It is done between 10 pm and 6 am. It is forbidden for those under 18. Your day cannot exceed 8 hours on average over a period of 15 days.
- Work-shift: Performed at different times over periods of days or weeks.
4. Rest Time
4.1 Weekly Rest
Minimum of 1 day and a half uninterrupted, accumulated for up to 14 days. Between the end of a workday and the beginning of the following, at least 12 hours of rest must mediate.
4.2 Holidays
The working parties have paid and non-recoverable nature, cannot exceed 14 per year, of which 2 will be local. The State government can fix the dates of the holidays on their own. Nationals are considered: on December 25 (Christmas), January 1 (New Year), May 1 (Labor Day), and October 12 (National Day).
4.3 Vacations and Leave
Vacations are paid interruption of work activity throughout the year to rest the worker, with a duration of not less than 30 calendar days for every year worked. They are enjoyed during the calendar year to which they relate. They must be known 2 months prior to your enjoyment.
Permissions:
- By marriage, 15 calendar days.
- At childbirth, death, accident, or serious illness to the second degree, 2 calendar days, 4 days travel.
- By moving from usual residence, 1 day.
- To perform a duty of public and personal, as well as trade union duties, the time required.
4.4 Reduction of the Day
- For breastfeeding
- For children born preterm
- For legal guardianship of children, disabled person, and family care
- For being victims of gender violence