Investor's Guide - Labour System - Employment Contract

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Labour System 


1.6. Labour Contract under Service Commission Regime 


1.5. Suspension of Employment ContractsExecutive-level or equivalent duties may be performed in a contract under this regime, along with management or leadership posts directly dependent on the Board or the general manager or equivalent, personal secretarial jobs for people in any of these positions, or also – provided that a collective bargaining agreement allows it – jobs whose nature presumes a special relationship of trust regarding the people who hold these positions.


This type of contract must be executed in writing.


In terms of terminating such a labour relationship, either party may denounce it upon written notice, at least 30 or 60 days in advance, provided that it has lasted, respectively, up to two years or more. This aspect constitutes of the main advantages of this special regime.


This contract may be entered into by the company with pre-existent employees (internal service commission regime) or with external people (external service commission regime).


Upon termination of this contract, the employee is entitled to:


i. Within the context of an internal service commission regime:


a. to reassume the previously performed functions or the ones related to the category to which he may have been promoted;


b. alternatively, to terminate the contract within 30 days following the employer's decision to end the commission, being entitled to the legally established compensation as if he was included in a collective dismissal procedure.


ii. Within the context of an external service commission regime, he is entitled to receive the compensation indicated in a), ii. here above (unless the parties agree otherwise in writing).



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