CHAPTER II
Sources of labour law
Article 13
(Sources of labour law)
1. The sources of labour law are the Constitution of the Republic, normative instruments
enacted by the Assembly of the Republic and the Government, international treaties and
conventions, as well as collective labour regulation instruments.
2. The practices of each occupation, sector of activity or enterprise that are not contrary to the
law and the principle of good faith shall also constitute sources of labour law, unless the
parties to individual or collective employment relationships agree that these practices shall
not be applicable.
Article 14
(Codes of good conduct)
1. Notwithstanding the provisions of paragraph 1 of the preceding article, the parties to an
employment relationship may establish codes of good conduct.
2. Codes of good conduct and internal regulations are not sources of law.
Article 15
(Collective labour regulation instruments)
1. Collective labour regulation instruments may be contractual or non-contractual.
2. Contractual collective labour regulation instruments comprise collective agreements,
adhesion agreements and arbitral awards.
3. Collective agreements may take the form of:
a) Company-level agreement: when subscribed by a trade union organisation or
association and by a single employer for a single enterprise;
b) Multi-employer agreement: when concluded between a trade union organisation or
association and several employers for different enterprises;
c) Association agreement: when concluded between trade union associations and
employer associations.
4. An adhesion agreement is entered into when a collective labour regulation instrument in force
in an enterprise is wholly or partly adopted by both parties to a collective employment
relationship.
5. An arbitral award is the decision of one or more arbitrators, which is binding on the parties to
a dispute arising from an employment relationship.
6. Non-contractual collective labour regulation instruments comprise compulsory arbitral
awards.
Article 16
(Hierarchy of the sources of labour law)
1. Higher sources of law shall prevail over hierarchically lower sources of law, except when the
latter, without contradiction by the former, establish treatment more favourable to the
employee.
2. Where a provision in this law states that it can be displaced by a collective labour regulation
instrument, this shall not mean that it can be displaced by a clause in an individual
employment contract.
Article 17
(Most favourable treatment principle)
1. Collective labour regulation instruments and employment contracts may depart from the
provisions of this law only when they afford treatment that is more favourable to employees.
2. The provision of the preceding paragraph shall not apply when the rules of this law do not
permit it, namely, when they are imperative rules.
CHAPTER III
Individual employment relationships
Section I
General provisions
Article 18
(Employment contract)
An employment contract is understood to be an agreement whereby one person, the employee,
undertakes to perform his or her work for another person, the employer, under the authority and
direction of the employer and in return for remuneration.
Article 19
(Presumption of employment relationship)
1. A legal employment relationship is presumed to exist when an employee is carrying out
remunerated activity, to the knowledge of and without opposition from the employer, or when
the employee is in a situation of economic subordination to the employer.
2. Employment relationship is the whole combination of the conduct, rights and duties
established between an employer and an employee with respect to the work or the services
performed or which should be performed, as well as the manner in which such performance
should be rendered.
Article 20
(Contracts equivalent to employment contracts)
1. Contracts for the provision of services that put the service provider in a situation of economic
subordination to the employer are considered as equivalent to employment contracts, even if
the services are performed autonomously.
2. Service contracts for the performance of activities that correspond to vacancies in the staff of
an enterprise shall be null, and converted into employment contracts.
Article 21
(Freelance work and retainers)
1. In addition to staff employees, employers may employ persons on a freelance or retainer
basis.
2. Freelance work means work or duties that do not fill, but are performed within, normal
working hours.
3. Work performed on a retainer basis means work or duties that are not part of the normal
productive process or services, and do not fill the normal working hours.
Section II
Parties to individual employment relationships
Article 22
(Capacity for employment)
1. Capacity to enter into employment contracts is governed by the general rules of law and by
the special rules in this specific law.
2. Where a certificate of occupational competence is required, an employment contract shall
only be valid upon presentation of the certificate, in accordance with the terms of the
following paragraph and specific legislation.
3. Employment contracts that are concluded contrary to the rules established in this article shall
be null and void.
Article 23
(Employment of minors)
1. Employers shall, in conjunction with the relevant trade union body, adopt measures aimed at
affording minors working conditions that are appropriate for their age, health, safety,
education and vocational training and preventing any damage to their physical, psychological
and moral development.
2. Employers shall not give minors under the age of eighteen work that is unhealthy, dangerous
or which requires great physical strength, as defined by the competent authorities, after
consultation with trade union and employer organisations.
3. The normal working hours of minors between the ages of fifteen and eighteen shall not
exceed thirty-eight hours per week, up to a maximum of seven hours a day.
Article 24
(Prior medical examination)
1. Minors may be employed only after they have been given a medical examination to assess
their physical strength, mental health and ability to do the work that they will be assigned, and
presentation of the respective certificate of fitness for the work shall be compulsory.
2. The certificate of fitness may be issued for one job or for a group of jobs or occupations that
carry similar health risks, according to the classification made by the competent authority.
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