1.What does it mean to have an employment contract?


  1. What does it mean to have an employment contract?
  2. Types of employment contract
  3. Self-employment


1.What does it mean to have an employment contract?

Having an employment contract means having all the rights, responsibilities, duties and employment conditions that make up the legal relationship between an employer and employee. Usually, all kind of employment contracts can include terms which, are legally binding, for example: the employer’s duty to pay the employee wages, or the duty of the employee of not getting late to the workplace.

It has to be taken into account that different kinds of contract apply, depending on the employment status of the individual. Because of that, it is key to determine correctly the employment status of the person you are going to hire before drafting the employment contract.

An employment contract has to include and clarify several points regarding to the data of it:

  • Name and address of employer and employee
  • Start and duration of employment
  • Type of activity and description of its tasks
  • Workplace location
  • Remuneration amount (usually gross salary)
  • Composition of said remuneration (base salary and supplements if any)
  • Workday
  • Holidays
  • Deadlines for terminating the employment contract
  • Reference to applicable collective agreements or company or service agreements

It is very important that the contract clarifies all this information for both sides, especially, for the employee.