What is a temporary employment contract and how does it work?

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What is a temporary employment contract and how does it work?

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The temporary employment contract is a type of employment relationship that allows the hiring of professionals for a specified period, regulated by Consolidation of Labor Laws (CLT).

Certainly, you have heard of companies that hire temporary workers, especially in seasonal seasons, when there is an increase in the demand for work. But you really know what is temporary employment contract and the rights of that regime?

What many may not know is that this type of contract has a series of requirements provided for by law.

The basic premise of what the temporary employment contract is is the fact that a company hires a professional for a specific time, already provided for in the negotiation, to perform a function.

However, it is necessary to prove to protect yourself judicially from labor lawsuits that having this new post is really necessary. It is worth remembering that the temporary employee should not replace the hiring of permanent employees.

Afraid of the uncertain economic scenario promoted by the new coronavirus pandemic, the temporary hiring of service providers last year increased by 34.8% compared to 2021, according to information from Asserttem (UK residents Association of Temporary Work).

In total, more than 2 million of temporary contracts signed in 2021. On our blog, we have already talked a little about the existing employment contract models in Brazil and when each one should be used, check out on here.

In this article, you will learn:

  • What is a temporary employment contract ?;
  • How does a temporary employment contract work ?;
  • What rules should the company follow ?;
  • What are the rights and duties of professionals in this regime ?;
  • Can the contract be broken?

Come on!

What is a temporary employment contract?

The temporary employment contract is a type of relationship between employee and employer, which allows the hiring of professionals for a specified period. It is regulated by Consolidation of Labor Laws (CLT).

It must be used when there is an increase in the company's demand or to replace vacant stations temporarily.

Despite being foreseen in the CLT, using the temporary contract to circumvent the labor law can create problems for the company.

One of the not allowed points is to use temporary employees to replace fixed labor. Another common reason for using these employees is to replace a vacant post, such as maternity leave.

Before hiring a fixed-term employee, the company needs to know what a temporary employment contract is, based on the law, to prove that this temporary vacancy is necessary.

How does temporary employment contract work?

Following the changes in labor law carried out in 2017, the hiring of an employee must be done by a temporary work company, that is, there is no direct link between the company taking the services and the professional.

The temporary work company must be approved by the Ministry of Labor and Employment and know all the details of the law on what is a temporary work contract and its obligations.

The process works like this: the service borrowing company, which needs a temporary professional, will start a temporary work company that, in turn, will search for the ideal candidate (individual) for the vacancy and make the temporary contract.

In addition to the contract between the temporary work company and the contracted professional, it is mandatory to have a document signing the agreement between the service provider and the contractor.

What rules should the company follow?

The main doubt about what is a temporary employment contract permeates the rights of workers. According to the law, every employee in this agreement format has the same benefits as the permanent employee.

This means that the company needs to follow a series of actions to act as provided for in the CLT:

  • Signature of the work card;
  • Daily work hours of 8 hours;
  • Payment within the salary of the category;
  • Overtime;
  • Transportation vouchers;

In addition, as it is a temporary employment contract, there are rules regarding the duration of the agreement. The temporary employment contract has a maximum duration of 180 days, which can be consecutive or not.

In addition, it can be extended for another 90 days (also consecutive or not), as long as the employer proves that the extension of the contract is necessary.

What are the rights and duties of professionals in this regime?

As we talked about in the previous item about what is a temporary employment contract, the temporary worker has the same rights as the permanent employee. The professional also receives proportional vacation and thirteenth salary.

Meantime, there is no obligation of prior notice and the professional does not receive a 40% fine on the value of the FGTS, in the case of unfair dismissal. It is important to note that the temporary worker will also not be entitled to unemployment insurance.

This is because when signing the temporary employment contract, the moment when the employment relationship with the contracting company will end will already be foreseen.

In spite of being a temporary employee, the professional must follow all company rules such as meeting hours and hitting points, wearing a uniform (which must be provided by the company), in addition to other rules of conduct.

In return, the employer needs to offer the employee the same working conditions as the permanent staff.

Is there a breach of temporary employment contract?

What is a temporary employment contract, we have already explained, however, some rules can be confusing for the worker and for the company taking the services.

For example, in the common contract between company and professional, the breach of the agreement (resignation or dismissal of the employee) requires the fulfillment or payment of prior notice and a 40% fine from the FGTS.

However, in the case of temporary employees, if the company taking the service decides to terminate the contract before the deadline, in just cause, the employee is entitled to compensation corresponding to 1/12 of the payment received.

As you can see, updating labor laws has made life easier for employers and employees, however, carefully following the rules can prevent a number of legal problems.

Innovate not to lose talent

Temporary talents can become fixed talents if your company, in addition to offering a good work experience, adds useful corporate benefits to the employee's life.

Get to know the tool HR Consultants UKy and learn how the system that implements the on-demand payment, that is, the employees of a company can anticipate part of their wages when they need it.

This tool is changing the way employees deal with their wages and generating more job satisfaction and motivation.

HR Consultants UKy can be one of the most valued benefits for those who work at your company. Talk to an expert and learn more!

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