About this Video
- Video Title: 1
- Channel: Janz Pozo
- Speakers: Janz Pozo
- Duration: 00:17:55
Introduction
This video provides a comparison between service provision contracts and employment contracts in the private sector. The speaker aims to clarify the key differences between these two contract types for better understanding.
Key Takeaways
- Difference in Governing Law: Service contracts fall under civil law, emphasizing the autonomy of the parties' will. Employment contracts are governed by labor law, prioritizing the protection of the worker (principle pro operario).
- Autonomy of the Will vs. Pro Operario Principle: Service contracts allow for freely negotiated terms; whatever is agreed upon in the contract applies. Employment contracts, however, are subject to mandatory minimums established by law to protect the employee, even if not explicitly stated in the contract.
- Payment Methods and Tax Implications: Service contracts involve payments via honorariums, with a 14.5% annual tax retention. Employment contracts involve remunerations with monthly deductions for taxes and social security contributions.
- Annual vs. Monthly Tax Obligations: Honorariums have annual tax and social security obligations, while remunerations have monthly deductions.
- Contractual Details: Service contracts typically involve a single payment for a specific service, unlike employment contracts, which encompass various types of payments (salary, overtime, bonuses, etc.).
