Understanding Employment Contracts: Key Aspects
Employment Contract: Key Elements
An employment contract is an agreement between two parties where one party, the worker, agrees to provide services under the direction of the other, the employer, in return for guaranteed remuneration. This remuneration is independent of enterprise risks.
Essential Elements of an Employment Contract
- Consent: The manifestation of the will of both parties to enter into a contract. Consent given by force or fraud, or by individuals lacking legal capacity, is invalid. Consent may be given verbally or in writing.
- Purpose: The work performed under specific conditions in exchange for a salary. The purpose must be possible, lawful, and clearly defined.
- Cause: The reason for entering into the contract. In employment, this involves the willingness to exchange work for wages.
Parties Involved in the Contract
- Worker: The natural person who performs the work.
- Employer: The natural or legal person, or community property, receiving the services in return for providing a salary.
Limitations on Hiring and Working
- Worker:
- Age: Individuals aged 18 and over can freely contract. Those aged 16 or 17 require parental or legal guardian consent, or emancipation. Individuals under 16 cannot work, except in public performances with prior written authorization for specific acts.
- Qualifications: Certain professions require specific qualifications.
- Nationality: Non-EU foreigners require a work permit issued by the Minister for Employment and Social Affairs. EU citizens enjoy the right of free movement within Spain and cannot be discriminated against based on their nationality.
- Employer:
- Age: Employers can freely recruit from the age of 18. Those over 16 who are emancipated or have obtained the benefit of the age of majority granted by a judge can also recruit. Unemancipated minors can be hired by their parents or guardians.
Contract Form
- In Writing: Contracts must be in writing when required by law.
- Verbal: In practice, verbal contracts are only permissible for two types:
- Eventual contracts for production circumstances lasting no more than four weeks and full-time.
- Regular indefinite full-time contracts.
Contractual Agreements
- Trial Period: A period during which either party can terminate the employment relationship without notice or compensation. The trial period must be specified in writing in the contract. Its maximum duration is determined by the applicable collective agreement. If not set in the collective agreement, the duration cannot exceed what is indicated in the Workers’ Statute. Maximum duration according to the Workers’ Statute:
- Qualified technicians: 6 months.
- Other workers in companies with fewer than 25 workers: 3 months.
- Companies with 25 or more workers: 2 months.
- Permanence Pact: An agreement where the worker commits to staying with the company for a maximum of 2 years in exchange for the employer paying for a training course.
- Exclusivity Agreement:: Agreement whereby the worker stays in the business indefinitely or temporarily in exchange for financial compensation for the employer. It is made in writing and is intended to prevent unfair competition.