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1 min. read
#ElSalvador 🇸🇻 #BDS_LaborAlert: Short-Term Contracts for the Holiday Season
During the beginning of the holiday season, it is very common for employers that see an increase in sales to hire employees on a definite term basis, that is, using “fixed-term contracts”.
It should be noted that according to our labor regulations, this term will only be valid in the following situations:
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If based on objective circumstances that led to this agreement, the tasks to be performed may qualify as transitory, temporary, or eventual; and
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Provided that for contracting purposes, certain circumstances or events that will result in full or partial termination of the job tasks in a comprehensive or successive manner are considered.
In case that there is no written agreement providing clear evidence that this is a fixed-term contract and detailing in a precise manner the objective condition that requires the contract to be subject to a fixed term, such agreement will be deemed an indefinite-term contract, even if it establishes a specific term for termination.
The consequence from executing an individual fixed-term employment agreement is that upon expiration of its term, there is no right to claim compensation, as the termination of the employment relationship is not a consequence from a dismissal with cause.
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