What is a work contract and what are the mandatory elements?

It is familiar that the work relationship is concluded with signing the work contract by the employer and the employee.

However, what elements every work contract needs to have in order to be in accordance with the law? What moment is considered to be when employers start to work? How many copies of the work contract need to be signed? 

Each contract party should know its rights but also their obligations. We will present some of the most common and basic information that every employee and employer should know.

 

When it is considered that a work contract is concluded?

 

The work contract is considered to be concluded when it is signed by the employer and the employee.

 

What form of the work contract is mandatory?

 

Although for a long period of time it has been spoken about the possibility of introducing the electronic signing of the work contract, for now Employment Law as the only form of signing the work contract prescribes the written form.

 

In how many copies do you sign the work contract?

 

Work contract must be signed in at least three copies, one is mandatory given to the employee and two is kept by the employer.

 

When do you conclude the work contract?

 

The latest before the employee starts to work, in written form.

 

To what period of time the work contract is concluded?

 

The work contract can be concluded for a definite or indefinite period of time.

 

What are the mandatory elements of the work contract?

 

  • The name and seat address of the employer;
  • Personal name of the employee and its residence address;
  • Education of the employee that are the condition for performing business activity for which the work contract is concluded;
  • The job title and job description that the employee should be performing;
  • Place of work;
  • Type of work relationship(definite or indefinite period of time);
  • If the work contract is concluded for a definite period of time, its duration and legal ground for concluding a work relationship for a definite period of time;
  • The date when the work is starting;
  • Working hours;
  • The amount of basic salary on the day of work contract conclusion;
  • The elements for establishing the basic salary, work performance, wage compensation, increased earnings and other employees incomes;
  • Deadlines for disbursement of salary and other incomes that employee is entitled to;
  • The duration of day and weekly work schedule;

 

When the employee is starting to work?

 

It is an often mistake that many make thinking that the day of signing the work contract is representing the day of employes start of work;

In the work contract it must be specially named the day when the employee will be obligated to start working. If the employee unjustified does not start to work with the day that is agreed with the work contract, it will be considered that he did not engage in a work relationship.

 

Where the employer is obligated to keep the work related documentation?

 

The employee is obligated to keep the work contract at the seat address or other business space of the employer, depending on the place of work of the employee.

 

When the employee is obligated to register the employee?

 

According to the Employment Law, the employer is obligated to register the employee on the mandatory social insurance at the latest before the employee starts to work.

 

Probation period

 

With the work contract there can be an arranged probation period during which the employer will have the opportunity to review the work performance and work habits of the employee.

The probation period can be arranged for work contracts concluded for a definite or indefinite period of time.

The probation period can last for the maximum period of time of six months.

If the employer decides to cancel the work contract to the employee before the expiration of the probation period there must be a notice period of at least five days and the employer is obligated to explain the dismissal of the work contract.

If the employer ascertains that during the probation period the employee has not demonstrated adequate work and expert capabilities, the work relationship ends with the expiration of the term specified with the work contract.

 

Work relationship for definite period of time

 

Everybody is familiar with the fact that the work contract can be concluded for a definite period of time.

However it is important to notice that the general rule is that the work contract is concluded for an indefinite period of time, so a work contract for a definite period of time is an exception.

The work contract can be concluded for a definite period for conclusion of work relationship that is in advance determined by objective reasons that are justified by deadline or performing certain work, appearance of certain event and during the period of that need.

Also, it is important to notice that with the same employee the work relationship for definite period time with or without interruptions can not be longer than 24 months ( besides few exemptions). The period of interruption that lasts less than 30 days is not considered as an interruption according to the Employment Law.

Exceptionally, the period for definite period of time can be longer in the following situations:

 

  • If that is necessary for the replacement of temporarily absent employee, until his comeback;
  • For work on a project which time duration is in advance determined, the latest until the end of the project;
  • For work on jobs at newly established employer whose registration for work is not longer then one year, the maximum of 36 months duration;
  • With an unemployed worker to whom until the fulfillment one of the conditions for realization the right for pension up to 5 years.

 

If the work contract is concluded contrary to the regulations or if the employee stays to work with the employer for at least 5 working days upon the termination of the contract, it will be considered that the work contract is concluded for an indefinite period of time.

 

Working hours

 

Working hours represent the time period during which the employee is mandatory to perform business tasks.

According to the law the full time job represents 40 hours weekly. 

Part time working hours of course are shorter than the full time job. Part time employee has all rights as the employee with a full time working schedule according to the time spent on work.

 

Overtime work

 

Is the employee obligated to work overtime? Yes, however it is important to notice that only and exclusively in the case of emergency, and other unplanned situations.

Also, the law is protecting workers and prescribes that even in the situation of overtime work, the employee can work up to a maximum of 12 hours during one day, that is 8 hours per week of overtime work!

The employer must have evidence of the overtime work of his employees.

For overtime work the employee is entitled to increased earnings of at least 26% of the basic salary.

 

Night work and work in shifts

 

If the employee is performing work in the period from 22h-06 the next day, it is considered that the employee is working at night.

The work in shifts is an organization of work with the same employer according to which the employees are changing within an established schedule. If one employee during the month performs a minimum of one third of work in different shifts, the employee is working in shifts.

It is important to emphasize that the employer is obligated to pay attention that one employee can work longer than one work week in the night only with his consent.

For the work in the night the employee is entitled to an increased earning of at least 26% of the basic salary.

 

Annual leave vacation holiday

 

The employer gains the right to use annual leave holiday after one month of continuous work with the employer.

It is important to emphasize that under uninterrupted work it is also counted as the period of non working due to, for example, sick leave.

The annual holiday leave must last for a minimum of 20 days per year.

Proportionally part of the annual holiday amounts to one twelfth part of the total annual holiday for each month in the calendar year when the work is engaged or is terminated. 

The employer decides on the time of the usage of annual holiday leave with prior consultation with the employee. The employer needs to deliver to the employee the Decision of using annual holiday leave.

If the employee stops working, the employer is obligated to pay the employee the money compensation instead of using the annual holiday leave. It is considered that the employee would go on vacation if he could foresee that he will no longer work, so the character of this compensation is in fact the indemnity for not using the annual holiday leave.

 

Employment law is a very complex and highly formal field of law. It is highly considered that for drafting and signing the employment documentation you should always consult an expert.

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