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Oct 15

What Is An Mandate Agreement

The contract itself may provide for a specific date for its expiry. It can also be terminated if all the obligations contained in the contract have been fulfilled. A mandate contract may also be waived or revoked by the obligation or may expire with the death of both. In addition, the mandate contract has the advantage that the company is not subject to the necessary formalities in the case of an individual employment contract (which must contain certain minimum requirements prescribed by law). The mandate contract and the individual employment contract (“ILC”) are regulated differently from a legal point of view, so that the ILC is regulated by the Labour Code, while the mandate contract is regulated by Law 31/1990 with regard to commercial enterprises. As a general rule, both contracts include a benefit to a beneficiary, usually as part of the work programme. Both the individual employment contract and the mandate contract have a common characteristic, i.e. performance is compensated by remuneration. The mandate contract may be terminated at any time by either contracting party. In the event that the mandate is liable, the contract has been terminated by the customer without just cause, the customer is liable for the resulting damages. Termination of the mandate agreement takes effect immediately, unless the party to the terminated termination indicates a different termination date.

In addition, the contract itself may include the date of termination. We are of the opinion that, from the company`s point of view, the mandate contract has advantages over the individual employment contract, in particular with regard to the termination of the contract. These contracts can be concluded for various reasons. Agents may be on vacation or otherwise employed and must have a contract, lease or other legal document signed while on vacation. The elected representative may also be in good health, but physically limited, and require the use of a mandate contract to conduct business or otherwise take care of the client`s business. The powers of the mandate are extended to tasks ancillary to those defined in the mandate. From 1 January 2017, the minimum hourly wage for those working on the basis of a mandate contract will be set at PLN 13. On the other hand, the mandated person is not in a subordinate relationship with the company as part of the mandate relationship. This can be a disadvantage for the company, as it cannot regulate the actions of the hired person in the same way as the actions of an employee. As part of a mandate contract with Monte Titoli S.p.A. It is possible to revoke the mandate contract without having to justify the decision to revoke and without following prior procedures. In the event of termination of an individual employment contract, it is necessary to be included in one of the cases of dismissal expressly provided for by Law No.

53/2003 – Labour Code. It may also be necessary to undergo a prior dismissal procedure, such as the collective redundancy procedure or the prior disciplinary investigation procedure. The company has the possibility to include in the mandate contract certain clauses that are not allowed in an individual employment contract, such as .B. a notice period of less than 20 working days from the termination of the contract or the payment of the quarterly and not monthly remuneration. .