What is an employment contract?

Published on
November 24, 2023
What is an employment contract?

An employment contract is a legal agreement between an employee and an employer. It establishes the terms of employment, outlines the tasks to be performed, and details the compensation. The contract may be signed in person or remotely through electronic signature software, depending on the type of contract (fixed-term, permanent, etc.).

What is an employment contract?

Definition and purpose

An employment contract formalizes the relationship between an employee and an employer. It specifies essential information such as:

  • The tasks the employee is required to perform.
  • The working conditions (working hours, workplace, etc.).
  • The amount of salary and the payment methods.
  • The rights and responsibilities of both parties.

This document is fundamental because it officially establishes the employer’s authority over the employee—a key principle in the employment relationship. Moreover, it must comply with current laws and respect workers' rights, ensuring that no clause contradicts public order (which would render it null and void).

Conditions for validity

For an employment contract to be legally valid, it must meet four essential criteria:

1. Capacity to sign

Only individuals who are legally competent can sign a contract. For example, a non-emancipated minor cannot sign without parental or guardian consent. Exceptions exist for minors over 14 during school holidays or for apprentices from the age of 15.

2. Free and informed consent

Both parties must agree to the contract voluntarily, without any coercion or undue pressure. If signed under duress or fraud, the contract becomes invalid.

3. A clearly defined object

The contract must precisely detail the tasks to be performed, working hours, compensation, and each party’s responsibilities. This clarity prevents any ambiguity in the employment relationship.

4. Lawful content

All terms of the contract must adhere to current legislation. Any clause that is illegal or contrary to public order will invalidate the contract—for instance, imposing excessively long working hours or discriminatory practices.

Who can sign an employment contract?

The contract can be signed by:

  • An adult employee or an emancipated minor (with certain restrictions).
  • The employer or their legal representative (such as a manager or human resources director).

Non-emancipated minors under the age of 16 cannot sign, except in specific situations (for example, during school holidays or within an apprenticeship), in which case parental authorization is required.

Essential contents of an employment contract

To be valid, the contract must include key information such as:

  • Details about the employee and the employer.
  • The type of contract (fixed-term, permanent, etc.).
  • The job title and the responsibilities associated with the position.
  • The working hours (full-time, part-time, or flexible).
  • The salary amount and the frequency of payment.
  • The applicable collective agreement.
  • The conditions under which the contract may be terminated.

For permanent contracts, additional details might include a notice period, methods for calculating paid leave, and any specific clauses such as non-compete or confidentiality agreements. Fixed-term contracts must clearly state the reason for the fixed duration, the start and end dates, and details about any trial period.

Obligations of the parties after signing

Once signed, the contract imposes obligations on both parties:

Employer’s obligations

  • Provide the work as agreed in the contract.
  • Adhere to the defined working conditions (hours, workplace environment).
  • Pay the salary on time.
  • Respect the employee's rights, including leave and safety provisions.

Employee’s obligations

  • Perform the defined tasks diligently.
  • Adhere to scheduled working hours and maintain punctuality.
  • Comply with the contractual clauses, including those regarding confidentiality or non-compete agreements.

Contract modifications

An employment contract may be modified only with the agreement of both parties. Any changes (such as adjustments to working hours, workplace location, or salary) must be formalized in an amendment, duly signed by both the employer and the employee. In the event of termination—whether through dismissal, resignation, or the end of a fixed-term contract—specific legal procedures must be followed to ensure compliance.

Conclusion

In summary, an employment contract is a vital document that structures the relationship between an employee and an employer. It protects the rights of both parties and ensures that expectations remain clear and respected throughout the collaboration.