Types of employment contract: know what you need to know when drawing up

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Types of employment contract: know what you need to know when drawing up

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Employment contract is a document that constitutes an employment relationship between company and employee. However, there are several guidelines in relation to this topic and HR professionals need to pay attention to the types of employment contract and what the law says.

In addition, it is very important that the company’s planning has a fundamental role when making a contract.

Having an employee for the term you need can save your company money and avoid unnecessary expenses.

  • What is the need for your company today?
  • Does it need a permanent, indeterminate, temporary or occasional employee?

Answering these questions is the first step for your employee hires be more assertive.

To answer these questions, in addition to following this content, we recommend that you download the free eBook Perfect Recruitment and Selection. In it, you will understand how to outline strategies to get the hiring right. Answer the form and receive:

We have prepared special content on the most common types of employment contracts on the market and what CLT law says about each of them. Check out!

The concept of the employment contract

THE Article 442 The CLT has a brief explanation of what the employment contract is.

“Individual employment contract is the tacit or express agreement, corresponding to the employment relationship.

Sole paragraph – Whatever the branch of activity of the cooperative society, there is no employment relationship between it and its members, nor between these and the service providers of that company. ”

Now that you understand what the employment contract is, check below the types of employment contract that are recognized by labor reform 2017:

1. Fixed-term employment contract

Also called an experiment contract, this model is temporary and cannot be combined for more than 90 days. If there is mutual interest in extending the contractual period, the law allows it to be extended once, for another three months.

The fixed-term employment contract uses some particularities, check below which are:

  • It does not allow the receipt of prior notice;
  • It does not allow you to receive unemployment insurance;

Does not allow the 40% of the fine of the Guarantee Fund for Length of Service (FGTS).

2. Employment contract for an indefinite period

In this type of employment contract, there is no established deadline for the termination of the agreement between the company and the employee.

After the end of the experience period, which can last a maximum of 90 days, the company enters into an indefinite contract.

Typically, these contracts have only a start date and can be broken at any time. But, it is necessary to comply with a early warning by the employee or the company.

If the departure is not justified by just cause or reciprocal fault, the professional is entitled to unemployment insurance as provided for in employment law, 40% fine on the FGTS amount and prior notice.

These are the advantages and disadvantages of an open-ended employment contract.

3. Temporary employment contract

The type of temporary employment contract is related to the period in which an employee assumes a need for the company when another employee leaves.

This model also fits in some demand to complement its function.

THE Decree nº 73,841 and in its Article 1 it describes the meaning of temporary work before the law.

Article 1 – Temporary work is that provided by an individual to a company, to meet the temporary need to replace regular and permanent staff or the extraordinary addition of services.

This model had a maximum duration of three months, according to the Law No. 6,019, with the possibility of extension.

However, the MTE Ordinance No. 789/2014 stipulated that this contract can be extended for up to 9 months as long as the contract is justified.

4. Possible employment contract

THE eventual employment contract differs from temporary, as it does not generate employment.

In this case, the employee works for short, sporadic periods, and is not even considered an employee of the company.

THE Article 7 of the Federal Constitution in its item XXXIV it talks about this occasional work.

Art. 7 The rights of urban and rural workers, in addition to others aimed at improving their social condition, are:

XXXIV – equal rights between the worker with permanent employment and the individual worker.

5. Self-employment contract

The self-employed person cannot be questioned in view of his workload, in addition to the exclusivity in the provision of services and the deal between the company and the employee. If the contractor does not respect the points described above, such actions can de-characterize the model and cause complications for the company.

Do you know which employment contract is considered special? Check out the next topic.

6. Internship

The internship also fits the work model that does not have an employment relationship.

In this specific case, the type of employment contract is actually a term of commitment that is signed by the student and employee, where the professional’s actions are defined.

Remembering that the internship is a moment of learning, where the student can put into practice his skills and abilities. Therefore, this type of employment contract is considered special.

Law of the internship

Article 3 of the law 11.788 / 2008, which was also known as the internship law, talks about the issue of employment and what are the student’s rights in relation to his work.

“The internship, both in the hypothesis of § 1 of art. 2 of this Law and the one provided for in § 2 of the same provision, does not create an employment bond of any nature, subject to the following requirements:

I – enrollment and regular attendance of the student in a course of higher education, vocational education, high school, special education and in the final years of elementary education, in the professional modality of youth and adult education and attested by the educational institution;

II – signing of a term of commitment between the student, the grantor of the internship and the educational institution;

III – compatibility between the activities developed in the internship and those provided for in the term of commitment. ”

7. Round 12 × 36

Before regularization, the 12 × 36 shift was possible before the reform through negotiation between the companies and the unions responsible for monitoring employee rights. This scale can now be made official in three ways:

For employers who choose this hiring model, it is important to pay attention to breaks given during long working hours.

According to the law, the period varies from 1 to 2 hours a day and it is possible to negotiate these moments of rest as much as the pecuniary allowance.

8. Intermittent employment contract

In the intermittent employment contract, employees are remunerated according to the period worked. Persons hired on an intermittent basis are entitled to paid leave, 13th, guarantee fund and social security.

Read too: What is intermittent work.

9. Outsourcing

With labor reform, all service stations within an organization can be outsourced, including core activities, which are the essential exercises in which the company can operate.

In order to avoid layoffs and rehiring of outsourced employees, an 18-month interval has been approved, which must be complied with, so that employees can be readmitted. In this model of contract, the employee is entitled to:

  • Transportation vouchers;
  • Food;
  • Medical assistance;
  • Professional training;
  • Course for use of equipment and work safety, among other benefits that are offered in the employment contract at CLT.

Characteristics of the employment contract

Do you know the characteristics of the employment contract? Check it out below:

Bilateral or signagmatic

It is the type of employment contract that involves both the obligations of the employer and the employee and that has reciprocity in the set of benefits. One party pays the salary and the other provides the service.

Consensual

Treatment that does not require formality for the manifestation of wills, whether expressed or hidden, but that allows consent between the parties.

Commutative

Employment contract whose obligations are known since the formalization of the contract. For example, how much salary will be paid and what the employer will pay.

Onerous

For the provision of the employee’s activities, which corresponds to the remuneration paid by the contractor.

Successive treatment

It is related to the characteristic of continuity in time. This means that it does not end in a single act in view of the expectation of reward for the activities performed.

Intuito personae

It contains a personal character about the employee, so that only that employee can provide the services.

Informal

It is the type of contract that does not need something defined or recognizable. In such cases, the agreement may be verbal or between the lines.

When is there an employment relationship with the company?

A common question in the job market is whether or not the employee has an employment relationship with the company.

THE work justice highlights three points to be considered decisive for the company to know whether or not there is an employment relationship:

  1. If the professional performs a task, which is not possible, for example, once a week or fortnightly, becoming something frequent, there is an employment relationship;
  2. If there is a point control and working hours, hierarchies and subordinations, and salary order, is also considered an employment relationship;
  3. When the branch of activity of the company has something connected to the service provided by the professional.

The employment bond by law

Before the Law Decree No. 5,452 of CLT we can understand what is considered an employment relationship.

“Art. 3rd – Any individual who provides services of a non-casual nature to an employer is deemed to be employed, under his dependence and for a salary.

Sole paragraph – There will be no distinctions regarding the type of employment and the condition of worker, nor between intellectual, technical and manual work ”.

The importance of hiring

Hiring a new employee requires effort and dedication from HR professionals and managers. Signing one of the types of employment contract correctly can offer great advantages to the company.

Even understanding the law is a way to avoid labor problems. Especially when differentiating employees who have or do not have an employment relationship.

However, it is not enough to just establish a good type of employment contract, it is important to keep your talents in the company.

Engaging and motivating employees is a big challenge. Adopt a policy that brings together career plans it’s from benefits is what offers good results for the company.

Is your company looking for a platform that makes salary advances and does not cover absurd fees? That it is efficient, transparent, fast and safe? Meet HR Consultants UKy, the financial benefits platform that allows employees to access the salary of days already worked, at a cost of £ 0 for the company.

With our system you will:

  • Reduce the time in your employee dismissal admission processes;
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  • Avoid penalties, fines or any risk related to legal issues and information management of the company.

Talk to a consultant and find out how to offer this benefit to your employees.

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