The 8 types of employment contract (and its characteristics)

One of the main concerns of citizens in different countries of the world is work and / or lack of it. Having a job is necessary because it allows us to perform a social function which allows us at the same time to obtain the necessary resources to provide us with the elements necessary for our subsistence and our well-being.

However, the effort and time spent in the work activity must be rewarded in one way or another, an agreement has been required between the person who is going to work and the person, company or institution who will benefit from this effort.

This agreement is the employment contract. But the agreements reached will have different characteristics, depending on the purpose or the timing of the contract. That is why there are different types of employment contract, Which we will see throughout this article.

    The employment contract: characteristics

    The employment contract is the agreement between the employee and the employer and by which the services and activities to be performed for the latter by the employee are established and formalized, as well as the remuneration received by the employee in remuneration for his services.

    Likewise, rights and obligations are established of each of the parties, as well as the mutual consent of the business relationship and the purpose of that relationship.

    Other aspects to consider and which should be clearly reflected in the contract are its duration, existence or absence of a probationary period, The commitment and the need for prior notice in the event of a desire to terminate the contract before the agreed period, the consequences of its violation by either party and any other agreement reached in the process of awarding markets.

      Type of Contract

      By virtue of the characteristics we have seen, it is possible to establish different types of contract. In Spain, until a few years ago, we had a total of 42 types of employment contract.

      However, in December 2013, the number of contract types was reduced to a total of four basic types, which we will detail below.

      1. Contract of indefinite duration

      It is a type of contract that is established without limitation in time in relation to the period of execution of the service. In other words, this type of contract does not provide for an end date. It implies the existence of stability on the part of the employee, and in the event that the employer decides to terminate the employment relationship, he must compensate the above.

      This type of contract can only be concluded orally in some cases, although it may still be required (and indeed advisable) to formalize it in writing.

      In turn, permanent employment has a number of advantages not only for the employee but also for the employer, be able to benefit from different types of aid or tax deductions depending on the type of worker hired. For example, people with disabilities, entrepreneurs, young people, groups at risk of social exclusion, aged over 52 or ex-convicts will be included in different clauses specific to their condition.

      It should be borne in mind that, except in the case of sub-types of temporary, training or relief contracts, this type of contract will be transferred if the two years of commercial activity with the same company are exceeded.

      2. Temporary contract

      The temporary contract implies an agreement between the employer and the employee in which the provision of services is stipulated for a certain period of time.

      In general, all must be in writing, Although some of them can under specific circumstances be performed orally. Trial periods will vary depending on the stipulated hiring time. For the most part, extensions are allowed. In this type of contract we can find several subtypes, among which the following stand out:

      3. By job or service

      This type of contract is used in employment relationships that are known to have a certain beginning and a certain end, although the end date is uncertain and is limited to the completion of a particular service.

      4. Finally

      This type of contract, which must last a maximum of six months, it is one of the most common today. In principle, this contract is used at a time when a company or employer needs temporary assistance due to unforeseen circumstances in which more workers are needed than usual.

      5. Temporary

      The temporary contract is one whose main objective is to cover or replace a temporary vacancy. The duration of the contract covers the period of absence of the worker or of vacancy to be replaced. It is usually done when requesting and granting sick leave to employees., On statutory holidays or while a selection process is underway to fill the position.

      6. Relief

      This type of contract is used in situations where it is necessary to replace a person within a company for a certain period, who has reduced working hours due to partial retirement. In this way, the contract is made to cover the part of the working day corresponding to that during which the replaced worker stops working.

      7. Training and learning

      This type of contract should only be used with people between the ages of sixteen and thirty (up to twenty if the unemployment rate drops to 15%).

      Its main function is that of allow an alternation between professional activity and training, Which aims to increase employment while providing the proper training to perform properly. They can last up to three years, after which it is possible (although not compulsory) to join the staff indefinitely. The remuneration must not be less than the minimum inter-professional salary, being mutually agreed.

      8. Internship contract

      Like the training and apprenticeship contract, the internship contract is made under the pretension of improve the qualification and professional competence of the employee in order to exercise effectively. It is linked to a specific training, offering experience in the sector while allowing a better understanding of the training contents. Remuneration is fixed by agreement, without it being possible for it to be less than 75% of what a worker would receive at the same place.

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