How a commercial contract works
In recent years, more and more companies are launching job offers but offering a commercial contract, that is, a contract in which the person hired will not be a direct part of the company but will be hired as self-employed. It is important that, before signing a contract of this type, you know what it is and how it will affect your relationship with the Treasury and Social Security. In this article we are going to tell you how a commercial contract works to clear up any doubts that may arise in this regard.
The crisis has caused many companies to see their economic situation in a precarious state. This has meant that in order to cover business needs, they had to hire professionals but not through a labor contract but they have used the commercial contract, a type of agreement between two companies, two self-employed or a company and a self-employed worker in which it is reflected the labor relation that there will be between both indicating points like the salary, the labor day, the duties and rights of each one of the parts, etcetera.
So, the first thing you have to know is that in a mercantile contract you will NOT be part of the company's staff, that is, they will not pay your Social Security nor will they hire you in the eyes of the Treasury, but it will be you who will have to register as autonomous to be able to work within the legal framework.
So, when we talk about this type of contract, we refer to a company contracting externally the services of a professional or another company without them arising any other type of obligation. Usually, this type of work is usually offered to commercials that are self-employed, to expert professionals in some subject, and so on.
So depending on the type of work they are offering, you may not be interested in this type of contract because you will not be covered by Social Security and you will have to carry all the expenses that the self-employed have (the payment of the self-employed quota, VAT, personal income tax, etc.).
Therefore, to know how a commercial contract works, the first thing you should keep in mind is that, before signing it, you will have to go to the Treasury to sign up as a self-employed person ; If you do not do it, you will be signing an illegal document and, even worse, you will be working in black and the Treasury can impose a large fine. So do not play it!
These contracts are usually signed between two parties that are on the same level: one is seeking a service and the other is offering it legally (as a self-employed person). If the two agree, then we proceed to the drafting of the contract that must be signed by both parties and must include basic aspects of the agreement, such as the salary, the working day, the right (or not) to days of paid holidays and other aspects that are negotiated.
So, it is important that you know that if you sign a contract of these characteristics you will not have the same rights as a worker. So that you understand it better, next we are going to discover the main differences between an employment contract and a commercial contract :
- The labor pays its employees through a payroll in which Social Security contributions are discounted; In the case of the merchant, it will be he who will have to issue an invoice to the company that has hired him, discounting the IRPF and including VAT.
- The labor contract includes a series of worker's rights, such as paid vacations, medical leave, leave of absence, etc. in the case of the merchant, these rights are not included unless an agreement is reached with the contracting company.
- Another important difference is in the unemployment benefit since the worker is entitled to this compensation if he / she runs out of work, however, the merchant (as well as the self-employed) is not entitled to this benefit.
But, in addition to all these factors that might seem inconvenient, the truth is that being autonomous has some great advantages, such as being your own boss, being able to organize your own work, not having to sign up in a company, and so on. In this article we discover the advantages of being autonomous.
In addition to this, you should know that there are different types of commercial contracts that adjust to each situation and that contain specific characteristics. Here we discover the most used:
- Of change : this type of contract is usually signed in the event that an exchange of one good for another is made, for example, in the case of a purchase-sale of a vehicle, the work contract, and so on.
- Collaboration : is when an entity hires someone to perform a specific task and in a timely manner as, for example, may be the case of a writer with your editor, an agency with your representative, and so on.
- Loan and credit : especially is managed by banks and are usually signed when an economic benefit is made to an individual or company and that the business relationship is based on the payment of interest.
In this article we discover the types of work contracts in Spain that currently exist for you to familiarize yourself with them.