Contract Modality How many types are there in Peru?

  • Employment contracts in Peru offer various options to meet specific employment needs.
  • Contracts can be fixed-term, indefinite, occasional, or per project, each with specific regulations.
  • The fixed-term contract must be registered and its duration cannot exceed five years.
  • Workers with permanent contracts enjoy employment benefits and job protection.

Human daily activities require written records to formalize them; one tool used is the contract modality so that they can be used for certification purposes from a legal-labor point of view in Peru.

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Contract modalities

They are the different forms of presenting the employment contract, to meet the specific needs of the employer. The Employment Contract Law regulates various forms of work, considering the particularities and needs of the employer. The different types of contract will be explained below.

Type of Employment Contract according to its duration

As we have mentioned before, in Peru there are different contract modalities. Among them:

Fixed-term employment contract

It is regulated by the Law, and states that it must have a maximum duration of three (03) years, but it can be renewed indefinitely.

In order for this contract not to be renewed automatically, it is necessary that the party that does not want to continue with it, notify the other of its decision not to renew it, at least thirty (30) days in advance.

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Indefinite-term employment contract

In the case of an employment contract of less than one year, the renewal for the same or shorter period of time may only be three times, then the renewal cannot be considered for a duration of less than one year.

Temporary or temporary employment contract — Worker rights

In relation to the transitory employment contract, there is no specific regulation that expressly regulates it, and this consists of the contracts that are made to a worker, temporarily replacing another worker, or to develop a temporary, accidental or transitory activity, that is not part of the normal activity of the operational development of the same.

Work contract according to the duration of the work

As for the contract of work by work, it refers to a document with clearly established terms, where the time will be in accordance with the lapses that are required to complete the work that gave rise to the contract, so that once the work is finished, the contract of job.

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Labor contracting modality

Another classification that we can make, of the hiring of personnel, is the type of relationship to choose, which can be:

  1. Link by employment contract.
  2. Link by service contract.
  3. Link with temporary service companies.
  4. Link with associated work cooperatives.

It is the range of options that an organization can have to incorporate its workers, and each company will use one or the other, depending on its needs, and there will be no problem with it as long as the hiring complies with the law, and in cases where that the law allows.

Type of employment contract according to its form

The employment contract can be written or verbal, it does not require any special solemnity to be valid.

Types of Employment Contracts in Peru

Within the labor legislation of Peru, three (03) types of contracts stand out, which are used regularly in the private sector and whose characteristics are detailed below:

Indefinite or indefinite term contract

This type of contract has a start date but no end date; in the understanding that it can last over time until, for just cause, the dismissal of the worker is warranted.

It may be held verbally or in writing. It is not necessary for the worker to demand a written contract, but he must make sure that he is registered in the company's forms, so that he can receive all the benefits that the Peruvian labor system offers by law.

It is important to point out that the verification that the worker is included in the company's staff is through the payment receipts, in which the remuneration and deductions made to the worker are recorded, as well as indicating the date start of activities in the company.

Another aspect of interest for the worker is that the contract indicates all the labor benefits provided by law, among them: family allowance, compensation for length of service, bonuses, vacations, among others.

Fixed or determined term contract

It is the one where the provision of services is given for a certain time and is celebrated for a specific need.

The maximum term may not exceed 5 years. If this period is exceeded, the worker becomes indeterminate.

This contract must be in writing and registered with the Ministry of Labor and Employment Promotion within 15 days of its execution. The contract must clearly state the specific reason for hiring and the start and end dates.

Likewise, workers under this modality will enjoy all the benefits that workers have indefinitely, they will also have the right to enjoy job stability while the contract lasts and therefore exceeds the trial period.

varied contract

They are those types of contracts that usually arise circumstantially and are divided into subgroups.

Temporary

To start an activity according to the needs of the market or due to business conflicts.

Occasional

which is carried out under the modality of a substitution and/or emergency.

Accidental

That which is performed for a specific, temporary and intermittent activity.

If you enjoyed this interesting article, we invite you to learn more about this extraordinary topic at the following link: Right of first refusal and withdrawal


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