How is an employment contract formed?

Types of contracts

The Federal Labor Law establishes that an individual employment contract, whatever its form or name, is one under which a person is obligated to work in a subordinate position in exchange for the payment of a salary.

The particulars of the contract include the following information: Name, nationality, age, sex, marital status, CURP, RFC and address of the worker and the employer; duration of the contract (fixed term, seasonal, training or indefinite term) and whether the contract is subject to a trial period; the service or services to be provided, which should be determined as precisely as possible; the place or places where the work will be performed; the daily working hours; the form and amount of the salary; the date and place of payment of wages; training; and other conditions, such as days off, vacations and other terms agreed upon between the employee and the employer.

The lack of the written statement does not deprive the employee of the rights deriving from the labor regulations and the services rendered. The employer should be penalized for not formalizing the employment relationship.

What is an employment contract and its elements

Thus, when a person renders services to another person with the aforementioned characteristics, the bond that unites them corresponds to an employment relationship that must be regulated by an employment contract.

Consequently, the qualification attributed by the parties to a given service relationship is irrelevant to establish its true legal nature, in such a way that it is irrelevant that the parties could agree that part of the employee’s remuneration be paid against the issuance of fee slips, since if the relationship between the parties has the characteristics of an employment contract, this will be its true legal nature.

The foregoing is but a consequence of Article 8 of the Labor Code, which establishes that any provision of services performed under the subordination and dependence of an employer, leads to the presumption of the existence of an employment contract.

The reiterated jurisprudence of the Labor Directorate, especially contained in opinions No. 5299/0249, dated 14 December 2005, and No. 5299/0249, dated 14 December 2005. 5299/0249, dated September 14, 1992 and 1886/0163, dated May 11, 2000, among others, has considered that the requirements to constitute an employment contract are as follows:

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Elements of an employment contract pdf

An employment contract is an agreement between a worker and his employer in which the former agrees to perform certain tasks and to follow the instructions of the latter. This, in exchange for a certain remuneration.

The employment contract is the basic tool for the proper functioning of the labor market. It specifies the conditions under which a worker will perform certain tasks assigned by the employer. Rights and duties of the parties are derived from the employment contract and it is a fundamental proof when the help of a judge is requested in cases of breach or disagreement.

Another element that usually appears in employment contracts (although it is not mandatory) is a trial period in which the employee must demonstrate his suitability for the job. The employer may terminate the employment contract before the end of the probationary period without major consequences (in particular he does not have to compensate the employee).

Parts of an employment contract

The labor market is a sector in constant change. That is why it is important to know what types of employment contracts exist, what their characteristics are and what tools facilitate this management for the human resources department of any company.

An employment contract is an agreement between the employer and the employee that establishes the tasks to be performed by the employee, the economic remuneration he/she will receive for such services and, in short, all the working conditions.

It may happen that the entity needs this worker, at specific times, to work more hours than those contemplated in his contract. This can be done as long as these additional hours do not exceed 30% of the working day agreed in the contract.

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As regards specific training, if the job requires a specific qualification, the employee must have it. What happens otherwise? The employment contract would be null and void. There is another case in which the agreement could be null and void. This concerns foreigners who do not belong to the European Union and who do not have a work and residence permit.