What is the difference between an open-ended contract and a temporary one?

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Mitu8990
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Joined: Tue Dec 24, 2024 10:42 am

What is the difference between an open-ended contract and a temporary one?

Post by Mitu8990 »

The types of contracts currently available can be summarised in two models, depending on their duration: permanent or temporary . The permanent contract is often considered the most advantageous, because the worker equates it with a longer stay in his or her job. The temporary contract, however, is based on a specific or estimated duration that the employee knows from the first day.

These conditions are not always met. Sometimes, a worker with a permanent contract loses his job much sooner than one with a temporary contract. In reality, the biggest difference between the two is the compensation that the worker receives at the end of the employment relationship .

The dismissal of an canada whatsapp shopping data employee with an open-ended contract obliges the company to pay compensation, the amount of which is determined based on a series of factors: the cause of the termination of the employment relationship, the number of days the employee had been providing services and the remuneration he or she had been receiving.

Temporary contracts require the employer to pay a fixed number of days' salary (11 days for those signed in 2014), much lower than that taken into account when calculating the dismissal of a permanent employee (between 20 and 33 days).

Avoiding dismissal is the main reason why companies choose a temporary contract instead of a permanent one. Hence the government's efforts to introduce bonuses to encourage the latter type of contract, which are also contemplated for the transformation of temporary into permanent contracts.
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