Temporary employment contract: how does it work?

This option of employment is usually ensured through an external company that is responsible for managing the worker. The so-called Temporary Work Companies (ETT) are responsible for intermediating the hiring of workers for companies that need reinforcement for a specific need due to, for example, an increase in work, replacement of an employee or realization of an exceptional project. In this way, the ETT's present themselves as a viable and flexible option for companies and organizations. 

Although temporary work can replace the normal hiring of workers, especially in moments of economic uncertainty or oscillations of the workflow, it is important to remember that all situations that are legitimate for temporary work are perfectly described in the Labor Code, in order to guarantee the protection of workers' rights and prevent precarious forms of employment.

WHAT CHARACTERISES A TEMPORARY WORK CONTRACT ?

• Duration: The duration of a temporary employment contract is limited by the project or by the time established. The law limits the duration of a temporary work contract to a maximum of 2 years. Thus, the renewal of successive contracts for the same job is prohibited, unless there is a new absence of the replaced worker or increased need for labor due to seasonal activity.
• The purpose: temporary contracts are only allowed in occasional situations, cases in which companies need to increase their workforce for a determined period, in order to meet temporary circumstances, such as specific projects or temporary absence of an employee.
• What are the rights and duties of the worker: The temporary worker has the same rights and duties as a worker with a permanent contract, including the right to holidays and Christmas bonus.
• What are the contracting companies' duties : The contracting company is responsible for fulfilling the legal obligations and duties of the worker, including payment of wages, social security, holiday rights and safety at work.
• The worker's legal protection : The temporary agency worker has the same legal protection as a worker with a permanent contract and can go to court in case of conflict with the contracting company.
• The worker's benefits : Temporary agency workers are entitled to all benefits provided by law, such as holiday and Christmas bonuses, work accident insurance, leave and to earn no less than the national minimum wage.

THE ADVANTAGES OF WORKING WITH A TEMPORARY CONTRACT

Working with a temporary contract is often seen as a negative thing. But it can also be an advantageous possibility for some workers.

• More flexibility: Temporary contracts offer more flexibility for both employer and employee. This means that the employee may eventually adapt the working hours to his/her needs, working more or less time, always in agreement with the employer.
• Possibility of permanent employment: Many temporary jobs offer an opportunity for workers to excel and eventually be hired for permanent positions.
• Employment opportunities: Temporary work can also be an easier way to get a job in a specific sector, often without having the experience or qualifications needed to get a permanent job.

TEMPORARY WORK - WHAT ARE THE MOST COMMON AREAS?

Temporary contract work is used in various sectors of the economy, mainly in areas characterized by high seasonal work peaks.

1. Industry: Many industries have work peaks at certain times of the year.
2. Commerce: This is one of the sectors that most uses temporary workers in certain commemorative dates, such as Christmas time.
3. Tourism and hospitality: This economic area is marked by seasonality, with peak periods during holidays and public holidays.
4. Events: Shows and fairs often need temporary labor for their delivery and to respond positively to last minute challenges.
5. Health: It is usual for Clinics and Hospitals to hire temporary workers in times of greater need, such as vaccination campaigns or during an emergency.

In resume, the main difference between the temporary contract and the permanent contract is that the first one has a limited duration. In addition, the temporary worker is hired by a temporary employment agency (ETT), which is responsible for fulfilling the worker's legal duties and obligations. It is important to stress that the temporary contract should not be used to circumvent the law and workers' rights. Therefore, the company must have a clear and objective reason for signing this type of contract. 

If you are in the process of looking for work and are looking for a stable solution for your career, Fed Finance can help you. If you are a finance and accounting professional, we can support you in your career plan, from the first interview at our facilities to the date you start working. Send us your resume!