The 'job for life' is something that many people no longer count on or even look for, preferring professional changes and new experiences. However, there are still those who aim to be permanent in a company because it brings greater security.

Professional stability allows one to manage personal and family projects in a different way, provides greater peace of mind in situations of economic crisis, and even makes it easier to obtain credit. But when can a worker become a permanent employee? The website Contas Connosco explains.

Open-ended contract, what is it?

According to the Labor Code, a contract "is one whereby a natural person undertakes, for remuneration, to provide his or her activity to another person or persons, within the scope of organization and under their authority. It is called 'without term' or 'for an indefinite term' when the agreement that is signed between the parties does not define the end of that bond.

An employee can join a company immediately with an open-ended contract, if the employer so wishes. In such cases, there is a trial period, which can also be excluded from the contract by written agreement, during which the company or employee has the option to terminate without notice, cause or compensation. The 'probationary' period in an open-ended contract depends on the type of duties performed:

90 days for most workers;

180 days for positions of high responsibility or technical complexity, which imply trust, for the first job, or for the long-term unemployed;

240 days for managerial or senior management positions.

What about for those on a fixed-term contract?
Regarding the trial period, all the time that has passed, whether it is a professional traineeship, a fixed-term contract, temporary work, or provision of services, counts towards reaching the 90, 180, or 240-day limits defined. Basically, it's not because we renew a contract or become permanent employees that we go back to being on probation.

As for the ties themselves, the most recent changes to the Labor Code were made in 2019, and they made it more difficult for companies to make fixed-term contracts, which must be associated with specific functions limited in time (seasonal work, for example), worker replacements, unexpected increase in workload, new companies (up to 250 workers).

Still, going through one or more contracts before becoming permanent employees is a common situation for many people. In such cases, there are limits to the number of contracts and to the duration of the fixed-term work, which usually allows access to the more secure contract afterwards:

A fixed-term contract cannot be longer than two years;

Three renewals are possible, never longer than the time of the first contract;

The minimum for each contract is six months, with exceptions such as temporary replacement of workers or seasonality;

Fixed-term contracts cannot exceed four years.

When does a fixed-term worker become a permanent worker?
There are several situations - normal or irregular - that lead to a fixed-term contract becoming indefinite:

When the reason for the term contract is invalid;

If the term of the contract is exceeded;

When three contract renewals have already occurred;

If the contract wording does not have all the necessary information;

If there is no notice of non-renewal by 15 days before the end of the contract;

If after termination of a contract another one is concluded as a new admission;

When there is a breach in the renewal of the contract.

Finally, if a company does not renew a fixed-term contract, but then seeks another person for the same duties, the previous worker has a right of first refusal for that position. Failure to comply with this rule is considered a violation and, if confirmed, gives the right to compensation in the amount of three months' salary.

Despite having more advantages and even some benefits, all workers have the same rights, regardless of whether they have a fixed-term, uncertain, or open-ended contract. But becoming a permanent employee gives you more security and peace of mind.