What is the permanent employment contract?

employment contract

The permanent employment contract is the common form by which an employment relationship with no limits of duration is regulated between an employer and an employee, a worker or a manager. The agreement is used to govern the worker’s performance and the pay he will receive in exchange for his work. The permanent relationship, that is, without the provision of a deadline, is the most common type of employment relationship and differs from the fixed-term employment contract, which is used to regulate employment relationships with a predetermined duration.

This contract is governed by the provisions of the Civil Code (art.2096-2129), by numerous special laws, such as the Workers’ Statute ( Law 20 May 1970 n. 300) and by the laws of the Jobs act (among which the most relevant are the Legislative Decree 4 March 2021 n.23 and the Legislative Decree 15 June 2021, n.81).
It is also regulated by the national collective labor agreements ( CCNL) which are stipulated by employers ‘organizations (eg Confindustria, Confcommercio) and by workers’ unions (CGIL, CISL and UIL). The application of these collective agreements is mandatory only for employers registered with the associations that have stipulated them. If the employer is not registered with an employer trade union association, he can freely choose whether or not to apply the relative collective agreement.

When using permanent employment

It is used in all cases in which you want to establish a subordinate employment relationship without time limits with any type of worker with the exception of managers, for whom the law provides for a specific discipline.

To establish an employment contract without a fixed duration, the Civil Code does not expressly require the written form to be valid. However, the employee has the right to receive a document with the conditions of the contract and a written document is almost always used to allow the parties to settle the relationship in detail and to agree on certain clauses that require the written form (such as the trial period).

How can the permanent contract terminate?

Since this is an employment relationship without a limit of duration, the termination of the employment relationship may derive from an agreement between the parties, with which both employer and employee decide together to terminate the contract, or even unilaterally, in the event that the employer dismisses work through a dismissal letter or in the event that the employee terminates his / her assignment by sending the employer a letter of resignation.

While the employee has the possibility to resign at any time without a reason, except for the obligation to give notice to the employer (unless in cases of a serious breach by the employer, such as non-payment of wages), the employer must provide a reason for dismissal:

  • Dismissal for just cause: in the event that behavior occurs so serious as not to allow, even temporarily, the continuation of the employment relationship. In this case, there is not even the obligation to give notice by the employer as the employment relationship ends immediately (Article 2119 of the Civil Code).
  • Dismissal for a justified subjective reason: if there is a non-fulfillment of the contractual obligations by the worker that is not so serious, however, to fall within the just cause. Unlike just cause, therefore, the non-fulfillment attributable to the justified subjective reason requires the employer to give notice and not the immediate termination of the employment relationship.
  • Dismissal for a justified objective reason: dismissal for reasons inherent to the productive activity, the organization of work, and its regular functioning. It, therefore, consists in the dismissal that derives, not from a non-fulfillment of the worker, but from a reason that can be linked to the sphere of the employer’s activity, for example in the event that the employer cancels the job held by the dismissed worker. Also in this case, the law requires the employer to give notice.
  • Other cases that legitimize the withdrawal of the employer are failure to pass the probationary period (in which no motivation is required); the case of exceeding the period of illness.

What does the contract model contain?

Our employment contract meets all legal requirements. The main clauses included concerns:

  • Duties: a description of the activities required of the worker
  • A trial period: the first period of work, with fewer restrictions on the termination of the relationship, to verify that both employer and employee are satisfied
  • Remuneration: with a guide for respecting the minimums
  • The bonus: the possibility for the company to offer its worker a discretionary annual bonus
  • The commission: the option to offer the worker a percentage of the sales he makes as an incentive
  • Holidays and permits
  • Meal vouchers: for worker breaks

Once you have downloaded your contract we will guide you step by step to complete all the necessary subsequent obligations. Furthermore, as an additional service, we will be able to help you in starting and maintaining the employment relationship correctly (payslips, contributions, etc.).

Information you need

All employer and employee data are required to complete the contract.

Remember that our service does not generate a simple facsimile of a permanent employment contract. Based on your choices, the system automatically draws up a customized contract model for your needs, guaranteeing its legal correctness.

The document can be modified free of charge in all its parts without time limits. Don’t worry so if you don’t have all the information available right away, you can always enter it later.

Other names

  • Letter of commitment to hire
  • Letter of permanent employment
  • Permanent contract for office workers, blue-collar workers, middle managers
  • Contract with increasing protections (Jobs Act)