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Before defining who the worker is according to the Labor Relations Regulation Law, it is essential to clarify the definition of the employer. An employer is any natural or legal person who employs one or more workers in exchange for remuneration.
A worker, on the other hand, is any natural person authorized by the Ministry to work for a licensed establishment in the country under the supervision and direction of the employer.
Definition of an Employment Contract
An employment contract is a A consensual agreement, meaning a contract formed with the consent of both parties, which is regulated by the Civil Transactions Law, requiring the exchange of offer and acceptance for its conclusion. It does not require a specific formality. However, the legislator has dedicated a specific law for employment contracts—Federal Law No. 33 of 2021 on the Regulation of Labor Relations—which defines an employment contract as:
“An agreement concluded between the employer and the worker, where the latter undertakes to work under the supervision and direction of the employer in return for remuneration, in accordance with the contract models specified by the executive regulations of this law.”
To emphasize that an employment contract is not a formal contract, the Labor Relations Regulation Law allows for proof of the contract and all its details—such as wages, job type, and duration—by all means of evidence. Article 8(2) of the law states:
“The worker or their representative may prove the employment contract, the wage amount, and any rights they are entitled to under this law, its executive regulations, and its implementing decisions, by all means of proof.”
The law also permits employers and workers to include special conditions in their employment contracts, provided these conditions do not reduce the rights granted to workers by law. In other words, additional benefits for the worker are allowed, but any condition that diminishes their rights is deemed null and void.
Employment Contract Under Civil Transactions Law
The definition of an employment contract in civil transactions law does not significantly differ from that in the Labor Relations Regulation Law. Article 897(1) of the Civil Transactions Law defines an employment contract as:
“A contract in which one of the parties commits to performing work for the benefit of the other under their supervision or management in exchange for remuneration.”
For this definition to apply to an employment relationship, the agreed work must have a specific duration, and the worker must be exclusively dedicated to the employer. A worker cannot be engaged by another employer simultaneously.
If a worker is allowed to work for multiple employers, their relationship would not be considered an employment contract under this definition but rather a contracting agreement (mukawala), where a contractor can work for multiple clients simultaneously.
Duration of the Employment Contract in Labor Laws
The legal framework regarding employment contract duration has evolved through different legislative stages:
- First Stage: The previous Labor Law (Federal Law No. 8 of 1980) allowed for both fixed-term and indefinite-term contracts. If a contract was fixed-term, its duration could not exceed four years, with the possibility of renewal for a similar period or multiple extensions.
- Second Stage: The Labor Relations Regulation Law No. 33 of 2021 abolished indefinite-term contracts and mandated fixed-term contracts with a maximum duration of three years. Article 8(3) states:
“An employment contract shall be for a fixed term not exceeding three years. The contract may be extended or renewed for another similar or shorter duration, once or multiple times, by mutual agreement.”
This provision mandated that contracts must be fixed-term, not exceeding three years, though they could be for a shorter period. - Third Stage: Federal Decree-Law No. 14 of 2022, which updates and modifies Federal Decree-Law No. 33 of 2021, also known as the Labor Law, maintained the requirement for fixed-term contracts but removed the specific time limit. Article 8(3) now states:
“An employment contract shall be for a fixed term, renewable as agreed upon by both parties.”
This amendment allows contracts to be renewed without a predefined maximum duration.
FAQ
What defines an employment relationship under Labor Relations Regulation Law?
Under the Labor Relations Regulation Law, an employment relationship is a legal connection between an employer and a worker. It is defined by several key elements. The primary indicators include the existence of a work contract (whether written or verbal), the worker’s integration into the employer’s organizational structure, and the employer’s authority to direct and control the worker’s activities. The law recognizes that an employment relationship exists when there is mutual consent between parties, where the worker provides services under the employer’s supervision in exchange for remuneration. Additional factors include the regularity of work, the worker’s dependence on the employer for income, the provision of tools and equipment by the employer, and the worker’s obligation to follow workplace policies and procedures. The law also considers the degree of independence the worker has in performing their duties – employees typically have less autonomy compared to independent contractors.
What are the key rights and obligations of workers under the Labor Relations Regulation Law?
Under the Labor Relations Regulation Law, workers have fundamental rights including the right to fair wages paid on time, safe working conditions that meet health and safety standards, reasonable working hours with appropriate rest periods, and protection against discrimination and harassment. Workers are entitled to annual leave, sick leave, and other statutory benefits as defined by the law. They also have the right to join trade unions, engage in collective bargaining, and receive proper notice of termination.
Conversely, workers have specific obligations including performing their duties diligently and in good faith, following legitimate workplace instructions, maintaining confidentiality of employer information, and adhering to workplace policies and safety regulations. Workers must also provide honest information during the hiring process, give appropriate notice when resigning, and avoid conflicts of interest that could harm the employer’s business. The law emphasizes that both rights and obligations are reciprocal, creating a balanced framework that protects workers while ensuring productive employment relationships.
How does the Labor Relations Regulation Law distinguish between employees and independent contractors?
The Labor Relations Regulation Law distinguishes between employees and independent contractors based on several critical factors. Employees work under the direct control and supervision of the employer, who determines how, when, and where work is performed. They are integrated into the employer’s business operations, typically work set hours, use employer-provided tools and equipment, and receive regular wages with statutory benefits and protections.
Independent contractors, conversely, maintain greater autonomy over their work methods and schedules. They usually provide their own tools and equipment, work on a project basis rather than ongoing employment, and are paid per project or assignment rather than regular wages. Contractors typically serve multiple clients, bear financial risk for their work, and are responsible for their own taxes and benefits. The law also looks at economic dependence. Employees usually rely on one employer for their income, while contractors run their own independent businesses. The classification significantly impacts legal protections, tax obligations, and benefit entitlements, making proper distinction crucial for both workers and employers to ensure compliance with labor regulations.
