Labor contract


For a working relationship to be safe and productive, there must be rules and agreements between the parties involved. There are many ways to do it and a pattern par excellence

An employment contract means the agreement in which the conditions are stipulated for a worker to carry out a productive activity for an employer or employer, and receive remuneration in exchange. This figure is indispensable in labor relations, as it guarantees the duties and rights of the parties involved before the law.

I. Parts of an employment contract

For a work contract to be valid, you must include the following information:
  • Name and personal or legal identity document of the company and the worker
  • Effective date of the document
  • Address of the company or the contractor for purposes of the jurisdiction under which it operates
  • Type of contract (fixed, temporary, for work performed)
  • Trial period
  • Conditions (place, schedule, salary, duration, vacation)
  • If it is protected by collective bargaining, it is carried out under the terms of said contract

II. Basic characteristics of an employment contract

The labor contracts vary according to the laws of each country, however, may have some commonalities between them, since almost all laws have been created based on the same principles and fundamental rights. Most agree on the following aspects:
  1. They can be written or verbal

    • Subscribe individually or through collective bargaining
    • They may optionally include a trial period (most laws establish a maximum of three months)
    • They establish a permanent duration (fixed employment), temporary (a certain period), or for work done
    • The work schedule or the time required to carry out the work must be included
    • They stipulate the salary or remuneration, as well as any other payment for different concepts
  2. They establish contractual obligations between the parties

  1. Regarding contractual obligations, most hiring contains four essential points regarding workers:
    • Relationship of dependency or subordination in relation to the employer, unlike service contracts or contracting of works
    • Compliance with schedules in established places
    • Compliance with the rules and regulations of the company or the contracting party
    • That the provision of services is of a personal nature: if it were through a company or professional association, one would speak of providing professional or specialized services

III. Elementary obligations of employers or employers

  • Make the payment of wages, salaries and other established economic benefits
  • Provide equal conditions and treatment to all staff
  • Respect the location (physical address) established in the contract
  • Make deductions and subsequent payments, as a withholding agent, that guarantee workers health services and tax solvency
  • Guarantees the sanitary conditions and fully comply with the regulations in this area
  • Guarantee the social benefits stipulated by the laws

IV. Expiration of the employment contract

It contemplates the definitive cessation of the relationship between the employer or employer and the worker, as well as the expected obligations. However, this step entails some obligations that, in the same way, concern both parties.
  1. The employer is obliged to deliver to the employee:

    • Proof of mandatory withholdings made during your stay at the company
    • Pending payments for salaries, benefits, vacations and other benefits due
    • Detailed relationship of the settlement or final payment
    • Proof of work, which reflects the position held, the time of service and the salary or salary
  2. For its part, the worker must:

    • Sign the receipts corresponding to the payments received, thereby accepting the arrangement, although this fact in many countries, does not prevent the worker from making subsequent claims
    • Return credentials, uniforms or any garment or equipment that has been supplied for the fulfillment of its functions within the company

V. Causes of termination of an employment contract

  • Dismissal of the worker or workers if it is collective
  • Legal causes
  • Overwhelming force
  • Worker resignation
  • Breach of the contract by any of the parties
  • Mutual agreement
  • Completion of the time stipulated in the contract
  • Death or disability of one of the parties
  • Termination of legal personality

SAW. Validity and usefulness of a contract

The laws, in general, are oriented to the protection of the worker, so that a balance is maintained, before a greater capacity of negotiation or advantages on the part of the employer or employer. However, it also benefits, so formalizing an employment relationship through a contract is convenient for both parties, as this action largely guarantees a responsible productive activity, with common objectives and goals, of well-being and safety. , exercised under the protection of the law.
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