Difference between indefinite contract and discontinuous fixed contract

Both contracts share a common link. The 2021 labor reform sought, among other things, to stop temporary hiring and encourage more stable and lasting business relations. Both the indefinite contract and the discontinuous fixed contract share these characteristics: they are of indefinite duration, that is, they do not have a defined end date.

But what differences do these two types of contracts have? What does the 2021 labor reform consist of? And what are the distinguishing characteristics of these two types of agreement between employee and employer?

What does an employment contract consist of?

Let’s start by laying the foundation. An employment contract is an agreement, written or verbal, between a company and a worker . This contract establishes both the rights and obligations of both parties in terms of an employment relationship that may be temporary or indefinite.

This employment contract contains the conditions of work, including the schedule, salary, activities to be carried out, overtime, trial period, as well as the vacation period and the duration of the contract. It is possible to download contract templates from the network, to see some examples of this.

Please note that only people who are over 18 years of age, or, where appropriate, are legally emancipated, can sign an employment contract. If they are over 16 years old, but under 18, they must live independently and have the tacit consent of their parents.

What does the 2021 labor reform say regarding employment contracts?

The labor reform approved in December 2021 modifies article 15 of the Workers’ Statute. As a result, temporary contracts for work or a certain service no longer exist. Temporary contracts and interim contracts also disappear.

Likewise, the labor reform stipulates that employment contracts are agreed for an indefinite period. Furthermore, a fixed-term employment contract may only be carried out due to circumstances related to production or the replacement of the worker.

Additionally, a transitional regime has been agreed for all fixed-term contracts, effective on December 31, 2021. In these cases, the provisions of the regulations by which they were agreed will be maintained, until their maximum duration.

What is a permanent contract?

In this type of contract, the employee is hired by a company for an indeterminate time limit. Said contract can be carried out, either partially, completely, or even solely for the provision of non-continuous fixed services during a certain season of the year.

Consequently, a permanent contract is in fact a type of permanent contract. What happens is that, with a discontinuous permanent contract, the employment situation is intermittent, while in the continuous indefinite contract, the work activity takes place throughout the year.

A worker with an indefinite contract carries out his activities continuously over time , unlike the worker with a discontinuous fixed contract, whose work activities are intermittent.

The employment relationship with the company can be formalized both in writing and verbally. Of course, it is recommended to do it in writing, since in this way certain types of problems that may arise at work can be clarified.

What is a discontinuous fixed contract?

A discontinuous fixed contract is one in which the worker is hired by a company on a permanent basis. However, the worker carries out his activities in certain periods of time.

That is, in the discontinuous fixed contract, the worker carries out his work activities in certain months of the year or seasonally . It has an indefinite nature, in contrast to the fixed-term contract, where the employment relationship with the company is only temporary.

As a result, at the end of the work period, the discontinuous fixed contract does not terminate. The only thing that happens is that the work activity is interrupted until the next work period.

In addition, jobs of a seasonal nature and related to seasonal productive activities are considered.

What is the difference between an indefinite contract and a discontinuous permanent contract?

The continuous or intermittent nature is the main difference between an indefinite contract and a fixed-discontinuous contract . That is, in the discontinuous fixed contract, the work activity is carried out intermittently, while in the indefinite contract, the work activity is carried out throughout the year.

A worker with a discontinuous permanent contract does not work every month of the year. Instead, he performs his work at certain times. For his part, a worker with an indefinite contract performs his duties throughout the year uninterruptedly.

Therefore, permanent discontinuous employees work intermittently, unlike permanent employees, who work continuously. However, both types of contracts share a similarity, in the sense that neither of them has an end date due to their indefinite nature.