Contracts for the provision of services or indefinite: what are they and how are they different? – Personal Finance – Economics

Contracts for the provision of services or indefinite: what are they and how are they different?  – Personal Finance – Economics

Has it ever happened to you that when faced with a job offer, your potential employee offers you a type of contract whose conditions you do not fully know, since, in general, you have always been linked to an organization through a single modality known as permanent. know that Colombian regulations currently establish several types of labor contracting, each one designed to determine tasks or services that a person can lend to a company or for specific jobs or trades that they demand and their differences are in the agreed terms.

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According to experts, one of the fundamental factors that a person must take into account when faced with a situation in which they must choose between an indefinite employment contract or one for the provision of servicesit is to understand well the differences in terms of the type of relationship, the times and the remuneration to which the workers are entitled, which will allow you not to encounter surprises that in the end can cause you some harm.

Thus, it is important to understand that a labor contract, according to article 22 of the Substantive Labor Code (CST) – is one by which a natural person (worker) undertakes to provide their services in favor of another who may be natural or legal (company), designated employee. This type of agreement is used for hiring workers (only natural persons).

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It means that with this, a long-term employment relationship is established between a company and a person, in which the first is obliged not only to recognize remuneration for services rendered (fortnightly or monthly) If not, he is also responsible for making social security contributions, payment of social benefits, transport or connectivity assistance when appropriate, work-related disabilities, contributions to compensation funds, overtime and vacations, among others, in exchange for that the worker complies with the requests of the employee related to the functions for which he was hired (subordination).

Hiring modalities

However, Colombian regulations coincide with several contracting modalities, each of which operate under specific conditions that must be met by both the contracting party and the worker.

In this sense, there is a fixed-term contract, in which it establishes a start date and an end date and Its duration can be one year, less than that period and a maximum of three (3) years. The completion of this requires prior notice by the worker with no less than 30 days prior to the termination date of the same.

Other contract modalities, perhaps one of the best known, is the one that does not establish a date for its completion and to terminate it the law does not establish the notice requirement.

In Colombia there are also labor contracts, such as specific work or work and its duration cannot be established, since the date on which the execution of the work will be completed is not known, as well as the contract for occasional, accidental or transitory, which does not last more than one month. It can be held when due to an extraordinary or unforeseen event the employer is forced to hire workers to carry out activities that are not of the normal order of activities carried out by the company.

provision of services

It is important that people take into account that the contracts for the provision of services that are made between a company and a person to provide a service during a certain period, must be clear regarding the terms and conditions in which they sign, among these the remuneration that the worker will receive and the duration of the contract.

Now, under this type of contract, experts say, The contractor is not obliged to comply with a specific schedule, being able to carry out his functions without being under a subordinate regime as required by the labor contract.

however, the person must assume their affiliation to social security (EPS), pension and severance fund (AFP), occupational risks (ARL) and the family compensation fund.

In that sense, It is essential that the person who assumes a responsibility under this contracting modality is clear that, once the contract for the provision of services is finished, they will not be entitled to pay a settlement, but only to the fees for the provision of their services.

By Mitchell G. Patton

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