The Asymmetric Contract
Labor law exists because the employment relationship is structurally unequal: the worker needs the job more than the firm. The law establishes minimum floors no private contract can dig beneath.
Four defining notes must all be present for labor law to apply, regardless of whatever label the parties choose to use:
| Note | Meaning |
|---|---|
| Personal | The worker performs the work themselves. |
| Voluntary | Freely agreed upon. |
| Dependent | Under the employer's organization and direction. |
| For others' account | Fruits and risks belong to the employer; the worker gets a wage. |
Common pitfall: Courts look at real facts, not contract titles. A "freelance" rider with a fixed schedule and company-set prices is legally an employee under the false self-employed doctrine.
Rules and Dismissals
Sources are stacked in a strict hierarchy where each upper layer sets a mandatory floor: Workers' Statute collective agreements (convenios colectivos) individual contracts. Lower levels can only improve on the layer above, never worsen it.
Core floors guarantee a maximum of 40 hours/week on annual average, at least the minimum interprofessional wage (SMI), and 30 calendar days of annual vacation.
Dismissals by the employer require a justified cause and are judged in three ways:
- Fair: Proven disciplinary or objective cause.
- Unfair (improcedente): Unproven cause requiring reinstatement or severance compensation.
- Void: Discriminatory or rights-violating, leading to mandatory reinstatement.