In order to meet the specific needs of both employers and candidates, it is essential that employment agencies are familiar with the different forms of employment contract and understand their legal implications. Employment contracts are a central element of professional relations, and understanding them is essential to successful collaboration between employer and employee.
They determine not only the duration of the contract, but also the working conditions, the respective obligations of the two parties, and the social security protection to which the employee will be entitled. This analysis is included in the services offered by employment agencies.
The aim of this article is to take a closer look at the different types of contract offered by employment agencies, in order to help both employers and candidates understand their respective rights and responsibilities.
What is an Employment Contract?
Addressing the notion of employment contracts provides an insight into a central element in the workings of employment agencies, particularly in terms of the legal commitments between employers and employees.
In fact, employment contracts are essential for determining the terms and conditions of employment, such as job duration, job responsibilities, benefits and salary negotiation.
There are different types of contract, depending on the professional status desired by the employer or employee. In this context, it is important for employment agencies to be familiar with these different contractual forms, so as to be able to guide their clients and candidates towards opportunities that are best suited to their needs and expectations. Fortunately, their knowledge of the job market is one of the great advantages of working with an employment agency, making orientation easier.
So, when a company calls on an agency to find a new employee, it must be able to propose a suitable type of contract according to the profile sought and the conditions offered by the company. Similarly, when a candidate registers with such a structure in search of a job or simply to broaden his or her professional prospects, he or she must be informed of his or her rights and obligations arising from the type of contract on offer.
With this in mind, our next section looks at the different types of employment contract.
9 types of employment contract
In the following paragraphs, we will discuss the main types of employment agency contracts, such as :
- Open-ended contracts (CDI): This is the standard, permanent type of employment contract. It has no specific expiry date and continues until the employer or employee decides to terminate it.
- Fixed-term contracts (CDD): This type of contract has a specific start and end date. It is generally used for temporary positions or to replace a permanent employee absent for a certain period.
- Temporary employment contracts: These contracts are used for temporary positions, often through a temporary employment agency. The agency is the official employer and lends the employee to a company for a specific period.
- Part-time contracts: In this type of contract, the employee works fewer hours than the standard workweek (generally considered to be 35 to 40 hours a week).
- Apprenticeship contracts: This type of contract combines paid work with training leading to a recognized qualification.
- Contrats de professionnalisation: This is a type of work-study contract, combining practical on-the-job training with theoretical training at a training organization or school.
- Internship contracts: This type of contract is generally used by students or people at the start of their career who wish to gain professional experience. The intern is not a full-fledged employee, but may receive a bonus if the internship lasts more than two months.
- Freelance contracts: In this type of contract, the worker is not an employee, but an independent service provider. Freelancers generally charge the company for their work, rather than receiving a salary.
- Seasonal employment contracts: This type of contract is used for positions that only exist for a certain period of the year, such as fruit-picking jobs in the summer or retail jobs during the holiday season.
Each of these contracts has its own specific characteristics, so let’s take a look at a simplified table showing them.
Simplified table of different types of employment contracts
Here is a table including each type of contract, with information on their duration and specific features.
| Contract types | Duration | Specificities |
|---|---|---|
| 1. Open-ended contracts (CDI) | Undetermined | – Stable, long-term employment – Generally regular hours |
| 2. Fixed-term contracts (CDD) | Fixed | – Limited-term employment – Schedules may vary |
| 3.Temporary employment contracts | Temporary | – Employment through an agency – Working hours and conditions may vary |
| 4.Part-time employment contracts | Indeterminate/Determinate | – Working hours below normal – Schedules may vary |
| 5. Apprenticeship contracts | Fixed | – On-the-job training – Employment and training simultaneously |
| 6.Professionalization contracts | Fixed | – On-the-job training – Employment and training simultaneously |
| 7. Internship contracts | Fixed | – Work experience for students or career starters – On-the-job training |
| 8. Freelance contracts | Depends on service contract | – Self-employed – Flexible working conditions |
| 9. Seasonal employment contracts | Season length | – Employment during a certain season of the year – Work can be intense during the season |
Please note that this table is simplified and cannot cover all possible nuances and exceptions.
Let’s now take a closer look at the different types of employment contract, covering the rights and obligations of employers and employees, the advantages and disadvantages, possible fringe benefits and the type of wage negotiation.
1. Open-ended contracts (Contrats à Durée Indéterminée)
The rights and obligations of employers and employees under an open-ended contract are as follows:
- Employer :
- Obligation to comply with contract conditions
- Must provide notice in case of dismissal
- Employee :
- Obligation to comply with contract conditions
- Must give notice in case of resignation
Advantages and disadvantages:
- Benefits: Stable, long-term employment, often with regular hours.
- Disadvantages: Termination conditions may be stricter than with other contracts.
Possible fringe benefits: Often included, depending on the company.
Salary negotiation: Possible, depending on company and position.
2. Fixed-term contracts (CDD)
The rights and obligations of employers and employees under a fixed-term contract are as follows:
- Employer :
- Obligation to comply with contract conditions
- Must provide notice before early termination of contract
- Employee :
- Obligation to comply with contract conditions
- Must provide advance notice of early departure
Advantages and disadvantages:
- Advantages: Flexibility for both employer and employee, fixed working hours
- Disadvantages : Lack of job security, limited working time
Possible fringe benefits: Sometimes included, depending on the company.
Salary negotiation: Possible, depending on company and position.
3. Temporary employment contracts
The rights and obligations of employers and employees in the context of temporary work are as follows:
- Employer :
- Obligation to respect the terms of the contract with the temporary employment agency
- Employee :
- Obligation to respect the terms of the contract with the temporary employment agency
Advantages and disadvantages:
- Advantages: Flexibility for employer and employee, possibility of testing different positions and industries.
- Disadvantages : Lack of job security, working conditions can vary greatly
Possible fringe benefits : Sometimes included, depends on agency.
Salary negotiation: Depends on the agency.
4. Part-time employment contracts
The rights and obligations of employers and employees in part-time employment are as follows:
- Employer :
- Obligation to comply with contract conditions
- Obligation to respect the agreed number of hours
- Employee :
- Obligation to comply with contract conditions
- Obligation to work the agreed hours
Advantages and disadvantages:
- Benefits: Flexibility for both employer and employee, work-life balance
- Disadvantages: Lower wages due to reduced hours, less stability than full-time work
Possible fringe benefits : Sometimes included, depending on the company.
Salary negotiation: Possible, depending on company and position.
5. Apprenticeship contracts
The rights and obligations of employers and employees under an apprenticeship contract are as follows:
- Employer :
- Providing training
- Respecting contract conditions
- Employee :
- Learning and working at the same time
Advantages and disadvantages:
- Benefits: On-the-job training, practical work experience
- Disadvantages : Reduced remuneration, workload and studies
Possible fringe benefits: Sometimes included, depending on the company.
Salary negotiation: Negotiable, but often reduced due to training.
6. Professionalization contracts
The rights and obligations of employers and employees under a professionalization contract are as follows:
- Employer :
- Providing training
- Respecting contract conditions
- Employee :
- Learning and working at the same time
Advantages and disadvantages:
- Benefits: On-the-job training, practical work experience
- Disadvantages : Reduced remuneration, workload and studies
Possible fringe benefits: Sometimes included, depending on the company.
Salary negotiation: Negotiable, but often reduced due to training.
7. internship contracts
The rights and obligations of employers and employees during an internship are as follows:
- Employer :
- Providing work experience
- Respecting contract conditions
- Employee :
- Learning and working at the same time
Advantages and disadvantages:
- Benefits: Work experience for students or career starters, on-the-job training
- Disadvantages : Gratification often low, sometimes not considered a “real” job
Possible fringe benefits : Rarely included.
Salary negotiation: Optional bonus if internship lasts a certain length of time.
8. Freelance contracts
The rights and obligations of employers and freelance workers are as follows:
- Employer :
- Comply with the terms of the service contract
- Freelance :
- Provide the services agreed in the contract
Advantages and disadvantages:
- Advantages: High flexibility, potential for higher rates, variety of jobs
- Disadvantages: Lack of job security, no benefits, burden of self-management
Possible fringe benefits: Not included (self-employed must manage their own benefits).
Salary negotiation: Negotiated in the service contract.
9. Seasonal employment contracts
The rights and obligations of employers and employees in the context of seasonal work are as follows:
- Employer :
- Obligation to comply with contract conditions
- Obligation to offer work during the season
- Employee :
- Obligation to comply with contract conditions
- Obligation to work during the season
Advantages and disadvantages:
- Advantages: Work available during a certain season, potential to earn a lot in a short time.
- Disadvantages: Non-stable job, work can be intense during the season
Possible fringe benefits: Sometimes included, depending on the company.
Salary negotiation: Possible, depending on company and position.
For an in-depth understanding of the legal rights and obligations of employers and employees in Quebec, the Act respecting labour standards is an essential document to consult. You can access this law online at LégisQuébec: An Act respecting labour standards.
Conclusion
In conclusion, it’s clear that each type of employment contract offers a unique combination of advantages and disadvantages for both employer and employee.
As an employment agency, it’s essential to understand these differences so that we can best help employers and employees find the right working arrangements.
- A permanent contract is generally the most stable and offers the most benefits, but it is also the most rigid and can require a long-term commitment from both employer and employee.
- Fixed-term contracts, temporary work and seasonal work offer greater flexibility, but with less job security. They can be ideal for specific projects or for jobs that depend on the season.
- Apprenticeship and professionalization contracts, as well as internships, are excellent for people looking to gain practical experience while studying or at the start of their career.
- Part-time and on-call work can offer work-life balance, but can also be less stable and offer fewer benefits.
- Self-employment or freelancing offers great flexibility and potentially higher remuneration, but it also requires greater self-management and generally offers no benefits.
If you still have questions, find out now which type of contract would be best suited to the position to be filled within your company by contacting First Round Agency, an employment agency that’s here to help you manage your human resources!
