Aspects to take into account for the work or labor contract

Published: October 23, 2018
Aspects to take into account for the work or labor contract

The type of work or labor contract is a contract which has a fixed stability but a relative duration since its termination will be determined once the specific work is completed, so there is no termination date to conclude the contract.

Let us remember that article 45 of the Substantive Labor Code establishes that the employment contract may be entered into for a fixed term, for the duration of the performance of a specific work or labor, for an indefinite term or to perform an occasional, accidental or transitory work.

This means that companies may validly enter into labor contracts for a term equal to the duration of the work or labor contracted, such as for example the construction of a pedestrian bridge or a shopping mall, this implies that the labor relationship ends once the work of the pedestrian bridge or the shopping mall is completed.

We recommend to always leave in writing the characteristics of the contract such as the type of work to be executed, the approximate time the work will last and the estimated date for the completion of the work or labor, in order to avoid inconveniences or misunderstandings at the end of the contract in question.

In this regard, the Supreme Court of Justice, labor cassation chamber stated:

"(...) If it is agreed in these documents that its term depends on the duration of a work or labor, which even legally does not require the written solemnity, it constitutes, when this form is used, a valuable element of judgment so that it can be determined more clearly that, in principle, the will of the parties is that the projection of the worker's activity is linked to a work or labor."

It is appropriate to emphasize that regardless of the duration of the contract, the company must always recognize and pay all the concepts inherent to an employment contract, such as social security and social benefits in proportion to the time worked.

At the time of the termination of the work or labor contract it is not necessary to give prior notice for the termination of the same, in comparison to fixed term or indefinite term contracts, it is mandatory to give prior notice since there is the opportunity of automatic renewal of the contract.

When there is an abrupt termination of the work or labor, or an unjustified dismissal, as in the case of the aforementioned contracts (fixed term and indefinite term), the worker will be entitled to the company to recognize an INDEMINATION FOR DISMISSAL WITHOUT JUST CAUSE, indemnification that will correspond to the value of the wages not received until the end of the work or labor, as established in article 64 of the Substantive Labor Code, which states:

(...) "In fixed term contracts, the value of the salaries corresponding to the time remaining to fulfill the stipulated term of the contract; or that of the period determined by the duration of the work or labor contracted, in which case the indemnity shall not be less than fifteen (15) days." (...)