What is an Employment Contract? – Types, and Advantages

What is an Employment Contract?

An employment contract is an agreement between an employer and an employee regarding the employee’s term of employment. It can be implied, oral, or written, involving a lengthy physical contract that the employee signs. The terms laid out in the warranty depend on what was agreed upon when the employee confirmed that they would take a position.

About the 4 Types of Employment Contract

In the following units, we will explain the different types of employment contracts in Spain.

Indefinite Contracts

Indefinite contracts are characterized by not presenting an expiration date or establishing a time limit on the service provision. They can be formalized as full-time, part-time or for the provision of discontinuous fixed services.

This contracting modality can take advantage of numerous bonuses provided by the Government. Which vary according to the profile of the contracting party and the contracted party: type of company, age, collection of unemployment benefits. Among others. It is recommend to have an online agency’s assistance to take advantage of these benefits.

In general, the Collective Agreements determine the maximum duration used for the trial period of an indefinite contract. However, all those cases that are not regulated in the Collective Agreement must establish a maximum trial period of 6 months for qualified technicians. And 2 months for the rest of the workers, with the possibility of reaching a total of 3 months in those companies with less than 25 employees .

Temporary Contract

The temporary contract is the basis of a brief employment relationship between the company and the worker, which can be full-time or part-time. Among the quick contract modalities, we find:

• Specific work or service: the new Labor Reform will no longer allow this type of contract to end temporary employment in Spain.
• Interim: substitution of workers with the right to reserve the job or temporarily cover positions during personnel selection or promotion processes.
• Incentives: subsidized contracts for hiring all those groups with more difficulties accessing the labour market.
• Eventual due to production circumstances: designed to cover a company’s specific needs.
• Relief: substitution contracts for companies that have access to partial retirement workers.

Training and Apprenticeship Contracts

Training and apprenticeship contracts facilitate job placement and training for young people through schemes that combine work and training activity. Through this training, an official degree in professional training or a certificate of professionalism related to the work activity in question is obtain. With a minimum duration of 1 year and a maximum of 3 years.

Due to the high unemployment rates in our country, the age range of people who can benefit from this type of contract ranges from 16 to 30 years old. The corresponding compensation of the worker must be proportional to the time that has been working and follow the stipulations of the Collective Agreement and can never be less than the minimum inter professional salary .

Internship Contracts

The objective pursued by internship contracts is to provide workers with sufficient practical training that will allow them to perform adequately in the work environment that corresponds to their degree. To apply for these contracts, you must have a bachelor’s degree, diploma, degree. Technical title or higher professional training technician, or an equivalent that has been complete in less than 4 years. .

It cannot be less than six months or more than two years, regardless of the type of workday that the worker is doing. The salary they must receive, in addition. Will be that stipulated in the Collective Agreement, which will correspond to a percentage between 60% and 75% of the salary of a worker who performs the same position.

Advantages and Drawbacks of Employment Contracts

A current employment contract has apparent advantages but also disadvantages.

Advantages of Employment Contracts

• Clearly defined duties and aids: The employment contract establishes the position’s responsibilities and the help of the place. Employers can use it to document employee performance standards and why a dismissal would be justify.
• Protects both employer and employee: The employment contract protects the rights of both parties. The employer may include a non-competition or non-disclosure clause in the employment. Contract to prevent the employee from disclosing confidential information for personal gain. It can also prevent them from quitting their job and competing with you in another business.
• Stability: Employee and employer see what to expect from their relationship.
• Legally binding: The employment contract is lawfully binding, and there are consequences if the employee breaks the contract.
• Attract employees – An employment contract can be use to attract candidates. To you and not to the competition by promising job security or other advantageous terms in the employment contract.

Conclusion

An employment contract or employment contract remains a contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an “employee” and an “employer”. It has arisen out of the old master-servant law, used before the 20th century.

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