Working for a company under a indefinite contracts has benefits for both the business and its employees. Contracts are key to build strong employer-employee relationships. They formalize the agreement that establishes the obligations and commitments of both parties.
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Contracts must be in writing. They conclude when the employee decides to terminate them. Contracts provide security and protection to both the employee and the company. They provide clarity to the worker about their duties, and guarantee their employee benefits. And they also give certainty to the company that the employee knows their responsibilities and will comply with them.
Benefits of indefinite contracts for employees
Stability:
A definite contract provides stability to employees. They have certainty about a steady job, which boosts their productivity in the company.
Severance pay:
Another benefit of indefinite contracts is that they make employees eligible for greater compensation after being laid-off. Employees who voluntarily terminate their jobs immediately lose their right to severance pay.
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Benefits of indefinite contracts for businesses:
Bonuses:
The State provides bonuses in the form of discounts off social security contributions and other compulsory payments to businesses that offer indefinite contracts.
Reduced employee turnover:
Employees become more productive, which reduces employee turnover as they remain in the company for longer periods of time.
At QuAdrans we offer the outsourcing service. We design a plan based on your company’s standards. Our goal is to reduce your administrative workload, and help your employees enjoy the basic benefits required by law.
Legal and Accounting Consulting Firm in Playa del Carmen
