3 November 2017

Peculiarities of the fixed-term contract

Do you have any employees on fixed-term contracts? Do you think that in your sector it is common to resort to this form of agreement with a large part of the workforce? Do you think that this type of contract is very similar to temporary contracts?

Although in the last 5 years, the use of the fixed-term contract has increased by thirty per cent., according to data from CEREM, However, the truth is that not all employers are aware of some of their most important features, nor are all employees who are linked to their company through one of these agreements aware of their peculiarities.

Aspects that differentiate the fixed-discontinuous contract from all others

The permanent-discontinuous contract is very common in the tourism and hospitality sectors. Although it is also used in industrial settings, especially when it comes to seasonal production, it is the service sector that has a higher percentage of workers linked to their company.

Those considering entering into such a contract should be aware that that this is a very special type of contract, which is highlighted by the following peculiarities:

Although it may not appear to be so, the fixed-term contract is a type of open-ended contract. Despite the services being provided discontinuously, the relationship between the worker and the company is stable.
As a business owner, realising that an employee's services may be needed for specific, limited periods but on an annual basis, the obligation is not to consider temporary hiring and to formalise a permanent-indefinite contract. Failure to do so could result in sanctions.
The regulatory base for this contract, which will be subject to contributions as a permanent employee would be, shall be the monthly salary. This amount must include supplementary hours as well as ordinary hours. What needs to be taken into account is that only employees on part-time contracts can work these supplementary hours, never those who work a full-time contract.
When the fixed-term contract is not formalised in writing, it is assumed that the worker must provide full-time services., unless the employer can demonstrate otherwise.
When proceeding to draft the fixed-term discontinuous contract model, it is necessary to specify the months or period in which the employee will provide services to the company, the type of working day that will be carried out, the working hours, and what the salary will be. which the worker receives in return. The form and order of call-out must also be recorded, which will depend on the provisions of the Collective Bargaining Agreement.
Between periods of work activity, the employee is not obliged to be available to the company.. Until the scheduled date for the appeal, the employee can decide whether to claim unemployment benefit or whether it is more beneficial to look for other work.
When, at that moment of the call-up, as an employer you make the decision not to call up the employee who was awaiting incorporation, you must take into account that it is being accepted that the situation be managed as an unfair dismissal.
If, on the date of the summons, it is the employee who refuses to attend the call to return to work, as an employer, you must be clear that this constitutes a voluntary resignation. This circumstance would automatically terminate the contract, except in the event of either of the following two circumstances: justified sick leave supported by the corresponding medical reports, or force majeure.

Discontinuous fixed-term contracts benefit both companies and employees, although in both cases it is important to be aware of the rights and obligations. that arise for each party from such an agreement.