The 7 types of employment contracts (and their characteristics)

The agreement reached between employer and employee is set out in a very detailed document.

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

However, the effort and time dedicated to the work activity must be rewarded in some way, requiring an agreement between the person who is going to work and the person, company or institution that is going to benefit from this effort.

This agreement is the labor contract. But the agreements that are reached will have different characteristics, depending on the objective or the temporary nature of the contract. It is for this reason that there are different types of employment contractsWe will go over them in this article.

The labor contract: characteristics

The labor contract is the agreement to which the employee and the employer arrive and through which the services and activities to be performed by the employee for the latter are established and formalized, as well as the remuneration that the employee will receive as payment for his or her services.

On the other hand, the labor contract is not an abstract entity, but in most cases is embodied in a document signed by both parties in which the two parties, the employee and the contracting company, undertake to comply with a series of measures in search of mutual benefit, given certain initial conditions. Therefore, regardless of the type of employment contract we are dealing with, they are all drafted with attention to detail and making things as clear as possible, so that there is no room for ambiguity, as this could be exploited by one of the parties.

Although the text that appears in an employment contract may seem very technical (and to a certain extent, it is), that has its raison d'être in leaving no room for doubt; the specialized language allows going into detail... although at the price that some people with little training may have trouble understanding the content of this document at first. That is why in case of problems in this regard, it is advisable to seek advice. Prospective employees are not obliged to sign the employment contract on the spot, they can have some time to examine it and resolve doubts.

All types of employment contracts establish the rights and obligations of each party, as well as the mutual consent to the business relationship and the purpose of such relationship. of each of the parties, as well as the mutual consent to the business relationship and the purpose of the relationship.

Other aspects to be taken into account and that should be clearly reflected in the contract are its duration, the existence or absence of a probationary periodOther aspects to be taken into account and that should be clearly reflected in the contract are its duration, the existence or absence of a trial period, the commitment and the need for prior notice in case of wanting to terminate the agreement before the agreed period, the consequences of its breach by either party and any other agreement reached in the hiring process.

Types 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 of employment contracts, which are detailed below.

Indefinite-term contract

This is a type of contract that is established without a time limitation as regards the period of performance of the service.. In other words, this type of contract does not stipulate an end date. It presupposes the existence of stability on the part of the employee, and in the event that the employer decides to terminate the employment relationship, he/she must compensate the employee.

This type of contract can be made only verbally in some cases, although it can always be required (and in fact it is advisable) to formalize it in writing.

In turn, indefinite-term contracts entail a series of advantages not only for the employee but also for the employer, by being able to benefit from various types of aid or tax deductions, depending on the type of worker hired (since it is understood that through this type of labor contract, the company is generating depending on the type of worker hired (since it is understood that through this type of labor contract, the company is generating quality employment, which benefits the country). For example, people with disabilities, entrepreneurs, young people, groups at risk of social exclusion, people over 52 years of age or ex-convicts will see the inclusion of different clauses specific to their condition.

It must be taken into account that except in the cases of the subtypes of interim, training or relief contracts, this type of contract will be changed to this type of contract if the two years of commercial activity with the same company are exceeded.

2. Temporary contract

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

In general, all of them must be made in writingHowever, some of them may under specific circumstances be made orally. Probationary periods will vary depending on the length of employment. In most cases, extensions are allowed. Within this type of contract we can find several subtypes, among which the following stand out:

2.1. For work or service

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

2.2. Temporary

This type of contract, which must last a maximum of six months, is one of the most common at present. In principle, this contract is used at those times when a company or employer needs temporary help due to unforeseen circumstances in which a larger number of workers than usual is required.

2.3. Interim

An interim contract is a contract whose main purpose is to cover or replace a temporarily vacant position. The duration of the contract covers the time of absence of the worker or vacancy to be replaced. It is usually performed when employees are requested and granted sick leave, vacations, or while they are on vacation.The duration of the contract covers the time of absence of the employee or vacancy to be replaced.

2.4. Relief

This type of contract is used in situations in which it is necessary to replace a person within a company for a specific period of time, who has a reduced working day due to partial retirement.. In this way, the contract is made to cover the part of the working day corresponding to the part of the working day that the substituted worker no longer works.

3. Training and apprenticeship

This type of contract should only be used with individuals between sixteen and thirty years of age (up to twenty-five if the unemployment rate falls below 15%).

Its main function is to to allow an alternation between work and trainingThey are intended to increase labor market insertion while at the same time providing the necessary training to enable them to work properly. They can last up to three years at the most, after which it is possible (although not obligatory) to join the workforce on an indefinite basis. Remuneration must not be less than the minimum interprofessional wage, being agreed by agreement.

4. Internship contract

Similar to the training and apprenticeship contract, the internship contract is made with the aim of improving the professional qualification and competence of the employee. improve the employee's professional qualification and competence in order to be able to work efficiently. It is linked to specific training, offering experience in the sector while allowing a better understanding of the training contents. Remuneration is fixed by agreement and cannot be less than 75% of what a worker in the same position would receive.

On the other hand, companies that choose to use this type of employment contract with part of their workforce must be able to demonstrate that they do not treat these people as they would treat an employee who is not in the company to learn, but mainly to work for pay. Similarly, companies cannot base most of their productive potential on the hiring of trainees. Ultimately, there is a risk that some companies may choose to use this type of contract as a disguised way of having employees work as would someone who is not in training, something that is being addressed through labor inspections, among other measures.