Have you ever stopped to think about how many types of contracts exist and what is each of them for? They play a fundamental role in labor relations, regulating rights, duties and deadlines. However, many people are unaware of the variety of contracts available and their particularities.
In this article, we will present the 15 main types used in Brazil and clarify their purposes. So, if you want to better understand how these contracts work, when to use them in your document management and what your legal requirements are, keep reading!
What are the main types of contract?
Below we list the 15 contracts you need to know and their purposes.
1. Contract for an indefinite period
The indefinite period contract is the standard type applied in the country. As its name says, it has no duration. In addition, it offers varied benefits to professionals, such as 13th salary, minimum wage, overtime and paid vacation. This type of contract is governed by fundamental principles such as autonomy of will, obligation and supremacy of public order.
For a contract to be valid, it is necessary that there are two or more people with generic capacity to carry out acts of civil life, specific capacity to contract and consent of the contracting parties. However, to draw up a contract with legal value, it is advisable to have a specialized solution.
2. Fixed-term contract
The fixed-term contract is a modality that falls within Brazilian labor standards, as established by Article 443 of the Consolidation of Labor Laws (CLT). In this type of contract, the relationship between employer and employee is established with a pre-defined period for its duration. There are three situations in which this type of contract is applied:
- execution of specific services: when the contract is necessary to carry out work or the project determined, with a well-defined beginning and end;
- prefixed term: the contract is established to be in force for a period determined from the beginning, without depending on the completion of a specific service;
- event capable of approximate prediction: in this case, the duration of the contract is determined based on the predictability of a future event, such as a seasonal increase in demand for services.
It is important to highlight that, for the fixed-term contract to be valid, there must be a plausible justification for the predetermination of the term. Furthermore, the contract can last for a maximum of two years.
If there is a need to extend it more than once, it automatically becomes a contract for an indefinite period.
3. Casual employment contract
The occasional employment contract is a peculiar type of employment agreement. When a company needs sporadic or occasional services, it uses this type of contract. It is classified as a service provision contract, ideal for employers who wish to avoid employment relationships with the professionals they hire.
In this context, there is no establishment of an employment relationship or exclusivity between the parties involved. It is worth noting that only individuals can be hired under this modality. Typical examples of contingent contracts include painting services or equipment maintenance.
To execute a contingent employment contract, it is crucial that all conditions are clearly and precisely detailed, such as the services to be provided, payment and the deadlines involved. Even though it is a temporary contract, it is essential to guarantee the legality and transparency of the relationship to avoid future conflicts.
4. Self-employment contract
The independent employment contract is an essential modality in the universe of employment contracts. In this arrangement, the activities to be carried out are previously agreed between the parties, and the contracting can be continuous or not, exclusive or not.
Before paying for the service, it is essential to issue an RPA (Self-Employed Payment Receipt), which must include Income Tax (IRPF), social security contributions (INSS) and Service Tax (ISS).
Unlike traditional employment contracts, the independent contract does not establish an employment relationship between the contractor and the contractor, granting independence and flexibility to both parties.
This type of contract is especially useful in situations where the company requires sporadic services or does not wish to create employment relationships.
5. Trial contract
The experience contract is a fundamental instrument in labor relations, offering companies the opportunity to evaluate a professional's performance before a permanent hire. This type of contract cannot exceed 90 days and its main purpose is to verify whether the employee has the necessary capacity to perform their duties satisfactorily.
During this period, the employer has the flexibility to decide whether the employee will be hired for an indefinite period or whether his contract will be closed. It is worth noting that the trial contract can be extended once, as long as it does not exceed a total period of 90 days.
A second extension automatically transforms the document into a contract for an indefinite period, guaranteeing the employee all the rights and benefits provided for by law. Therefore, it is essential that companies are aware of the rules and deadlines involved when using the experience contract as part of their hiring process.
In this context, the use of digital signatures can speed up the signing and formalization of this type of contract, providing greater efficiency and security throughout the process.
6. Teleworking contract
The teleworking contract, also known as home office, is a modality that has gained prominence in the job market, especially due to the Covid-19 pandemic. Regulated by Article 75-B of the CLT since 2017, this type of contract allows the employee to perform their functions outside the employer's physical premises, using T of information and communication.
One of the most striking features of the teleworking contract is the flexibility in the working day, which does not follow a fixed schedule. This provides greater autonomy to the worker to organize your tasks according to your routine and productivity.
To formalize a teleworking contract, it is essential that the parties clearly establish the terms and conditions, including aspects such as availability for virtual meetings, delivery of results and deadlines to be met.
Furthermore, it is essential to respect the employee's labor rights, guaranteeing salary payment, holidays, 13th salary and other benefits provided by law.
7. Temporary contract
According to Law No. 6019 / 1974, temporary work is carried out by an individual, intermediated by a Temporary Employment Company (ETT), to meet purposes such as meeting seasonal demands, such as at Christmas or Easter, and covering temporary replacement needs for permanent employees, such as during leaves of absence doctors.
This contract can last up to 180 days, with the possibility of extension for another 90 days, provided there is justification. Unlike other types of contracts, temporary contracts do not create an employment relationship and do not have a predefined period. It is a valuable tool for companies that need flexibility in hiring labor, without the obligations of a long-term contract.
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8. Intermittent employment contract
One of the most recent types of employment contracts in the Brazilian legal scenario is the intermittent employment contract. This one model emerged during the Labor Reform and is set out in the third paragraph of Article 443 of the CLT. It represents a flexible approach to the provision of subordinate services, characterized by non-continuity and alternating periods of activity and inactivity.
The main characteristic of this contract is that it allows the employer to call on the worker only when there is demand for their services, without the obligation to maintain a fixed working day. This offers more flexibility for both the employer and the employee.
Despite this flexibility, the intermittent employment contract ensures all labor rights provided for in the CLT, such as minimum wage, proportional vacation with an increase of one third, proportional 13th salary, FGTS and even unemployment insurance, depending on the conditions of termination.
This type of contract is an interesting alternative for companies that have peaks in seasonal demand, allowing employees to be hired when necessary, without the financial burden of maintaining a permanent team. For workers, it can provide greater flexibility in their schedule and more job opportunities.
However, it is essential that all conditions of the intermittent employment contract are recorded in a clear and transparent manner, to avoid conflicts and guarantee the rights of both parties involved.
9. Outsourced employment contract
Unlike the fixed-term contract, the outsourced employment contract does not have a defined period. This means that the provision of services by the outsourced worker can last for an indefinite period, as long as there is interest from the parties involved.
An important characteristic of this type of contract is the specialization of outsourced professionals. In general, these workers are hired directly by the Human Resources sector of the service receiving company and are chosen based on their skills and knowledge Specific.
Therefore, an outsourced employment contract is an option for companies that want flexibility in managing their workforce, avoiding direct employment relationships. However, it is important to highlight that outsourcing must be carried out in accordance with current labor legislation, observing the rules and rights of outsourced workers.
10. Partial employment contract
The partial employment contract is one of the types of employment contracts existing and is regulated by Brazilian labor legislation. This type of contract is intended to establish an employment relationship with a reduced working day compared to the common employment contract.
The partial employment contract can be signed for two different shifts:
- 30-hour workshops: in this case, the employee works up to 30 hours per week, without the right to overtime, but with all other labor rights guaranteed, such as proportional salary, paid vacation, 13th salary and FGTS;
- 26-hour working day with up to 6 hours of overtime: in this modality, the employee works up to 26 hours per week, with the possibility of working up to 6 overtime hours; Here, other labor rights provided for by legislation are also guaranteed.
This type of contract is ideal for companies that need labor for a short period of time or that have seasonal demands.
11. Contract for young apprentice
This special contract, regulated by Law No. 10.097 / 2000 and by article 428 of the CLT, aims to promote the technical-professional training of young people between 14 and 18 years old.
With a maximum duration of 2 years, the Young Apprentice contract is an essential tool for the inclusion of people vulnerable in the job market. All companies, with the exception of micro-enterprises and small businesses, are required to allocate between 5% and 15% of their employees to this type of contract.
For the young apprentice, this is an opportunity to acquire practical experience, theoretical knowledge and develop professional skills, all under the supervision of a company that is committed to offering a technology conducive to learning.
In addition to being a socially responsible initiative, the Young Apprentice contract also offers benefits to companies, such as tax incentives. Therefore, it is a way of invest in the future and promote a more just and equitable society.
12. Internship contract
The internship contract is one of the best known and most used types of employment contracts, especially by students looking for professional experience. It is regulated by Law No. 11.788 / 2008 and aims to provide a learning opportunity for a professional in training.
Unlike other types of employment contracts, the internship does not create an employment relationship of any kind between the intern and the company. Therefore, funds do not apply to it termination, advance notice or other labor rights common to traditional contracts.
For an internship to be valid, it must comply with current legislation, clearly defining the rights and duties of the parties involved. Therefore, when establishing an internship contract, it is essential that both the company and the intern are aware of their responsibilities and obligations, thus ensuring a positive relationship transparent and beneficial for both parties.
It is important to highlight that the internship contract must contain detailed information about the working hours, the grant, the duration, the activities to be developed and other aspects relevant to the intern's experience. Monitoring the intern is also essential, with periodic assessments of their performance and progress.
13. Trainee contract
A trainee contract is a valuable tool in the relationship between an employer and a recently graduated professional, providing a structured learning environment. This type of contract is aimed at young people aged between 21 and 30 who are looking to start their professional careers in an organization.
According to Law No. 10.097/2000 and article 428 of the CLT, the trainee contract has specific characteristics. It establishes an employment relationship between the trainee and the company, lasting from 6 months to 4 years. During this period, the trainee will have the opportunity to gain practical experience and develop professional skills.
This type of contract benefits both the trainee and the company, as it allows the training of new talents and the identification of promising professionals. In addition, the trainee receives remuneration, including labor rights, such as salary, paid vacation and 13th salary.
14. Green and yellow contract
This contract was introduced by Provisional Measure No. 905/2019 with the aim of encouraging the hiring of young people between 18 and 29 years old who had not yet entered the formal job market.
However, it is important to highlight that this provisional measure was not approved by the National Congress and, therefore, is not currently in force. Companies that hired under this modality until April 20, 2020 can continue to follow the rules established until the end of the contract.
The Green and Yellow Contract aimed to reduce bureaucracy and costs for employers, stimulating the creation of jobs for young people. However, its implementation faced legal and political challenges, demonstrating the complexity of labor legislation in Brazil.
15. International contract
An international contract is an agreement between an employee and an employer when one of the parties is foreign or the place of work is outside the country of origin. In this context, three scenarios can occur: a foreign employee working in a Brazilian company, a Brazilian employee in a foreign company or both, Brazilian employee and employer, working abroad.
A sensitive point in international contracts is the choice of law applicable to the contract. In general, Brazilian jurisprudence tends to favor the application of the law that offers the greatest benefit to the worker.
To guarantee the legality and security of these agreements, it is essential to have the help of professionals specialized in international labor law, as legal nuances may vary from country to country.
Furthermore, to facilitate the signing of documents in international agreements, the use of electronic signatures can speed up the process, eliminating the need for physical presence.
Now that you know the 15 types of contracts and their purposes, you can now compose them for all parties to sign.
But, for that, you need to have an electronic signature platform, right? Then, click here and learn about ZapSign's plans!
CEO of Henshin Agency and digital marketing consultant, fascinated by content marketing and an admirer of Japanese culture.
