An employment contract is a written agreement between an employee and an employer regarding a paid job, compensation, salary, working conditions, and each party’s rights and obligations with respect to labor relations.
A document with a different name that contains an agreement on a party’s paid job, salary, management, and supervision is also considered an employment contract.
As of January 1, 2021 (1/1/2021), there will be only 2 types of employment contracts, instead of 3 as previously stipulated in the Labor Code of 2012:
- Indefinite-term employment contracts
- Fixed-term employment contract
The differences between these two types of contracts is outlined below:
