The 8 types of employment contract (and their characteristics)
One of the main concerns of citizens in different countries of the world is work and/or the absence of work. Having an occupation is necessary, since it allows us to exercise a social function that at the same time allows us to obtain the necessary resources to provide us with the elements needed for our subsistence and well-being.
However, the effort and time devoted 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 that effort.
This agreement is the employment contract. But the agreements that are reached will have different characteristics, depending on the objective or the temporality of the contract. This is why there are different types of employment contract , which we will go on to look at throughout this article.
The labour contract: characteristics
The employment contract is the agreement between the employee and the employer and through which the services and activities to be carried out for the latter by the employee are established and formalised, as well as the remuneration that the latter will receive as payment for his or her services.
Likewise, the rights and obligations of each of the parties are established, as well as the mutual consent of the business relationship and the objective of said relationship.
Other aspects to be taken into account and which must 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 the event of wishing to terminate the agreement before the agreed period, the consequences of its breach by any of the parties and any other agreement reached in the contracting process.
Contract types
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, as detailed below.
1. Indefinite contract
This is a type of contract that is established without a time limit 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 must compensate the aforementioned.
This type of contract can be made only verbally in some cases, although it can always be required (and is in fact advisable) to be made in writing.
In turn, indefinite hiring entails 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. For example, persons with disabilities, entrepreneurs, young people, groups at risk of social exclusion, persons over 52 years of age or ex-convicts will see different clauses included that are specific to their condition.
It must be taken into account that, except in the cases of the sub-types of interim, training or relief contracts, you will be transferred to this type of contract if you have been in business with the same company for more than two years.
2. Temporary contract
The temporary contract is an agreement between employer and employee in which the provision of services is stipulated for a specific time period .
One of the main concerns of citizens in different countries of the world is work and/or the absence of work. Having an occupation is necessary, since it allows us to exercise a social function that at the same time allows us to obtain the necessary resources to provide us with the elements needed for our subsistence and well-being.
However, the effort and time devoted 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 that effort.
This agreement is the employment contract.
But the agreements that are reached will have different characteristics, depending on the objective or the temporality of the contract.
This is why there are different types of employment contract , which we will go on to look at throughout this article.
The labour contract: characteristics
The employment contract is the agreement between the employee and the employer and through which the services and activities to be carried out for the latter by the employee are established and formalised, as well as the remuneration that the latter will receive as payment for his or her services.
Likewise, the rights and obligations of each of the parties are established, as well as the mutual consent of the business relationship and the objective of said relationship.
Other aspects to be taken into account and which must 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 the event of wishing to terminate the agreement before the agreed period, the consequences of its breach by any of the parties and any other agreement reached in the contracting process.
Contract types
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, as detailed below.
1. Indefinite contract
This is a type of contract that is established without a time limit 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 must compensate the aforementioned.
This type of contract can be made only verbally in some cases, although it can always be required (and is in fact advisable) to be made in writing.
In turn, indefinite hiring entails 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. For example, persons with disabilities, entrepreneurs, young people, groups at risk of social exclusion, persons over 52 years of age or ex-convicts will see different clauses included that are specific to their condition.
It must be taken into account that, except in the cases of the sub-types of interim, training or relief contracts, you will be transferred to this type of contract if you have been in business with the same company for more than two years.