car employment clauses:

Download here a company car contract clauses for employment contracts



 The object of this contract is for tasks to be carried out for ……………….

 The valid term of this work contract shall be indefinite / see the various possibilities available from time to time



A probation period is set of ............. days/months (state the probation period applicable according to the provisions of the Collective Bargaining Agreement applicable for the employee’s professional group), during which the parties may terminate this contract without any need for prior notice or any compensation whatsoever.

For such purpose, it is expressly agreed that temporary disability maternity, adoption or fostering leave that affects the worker during the probation period shall interrupt the calculation thereof, and it will begin again when the worker effectively returns to work.


When carrying out his/her duties as a .................................., in the ............................ professional group, the worker must carry out the following duties: 

(State the duties normally carried out by such workers)   

The worker undertakes to diligently and responsibly carry out all of the tasks and jobs assigned thereto and to follow the instructions given by the company.


Both parties agree that the worker may be flexible with his/her duties; therefore, the employee undertakes to complete the tasks assigned thereto by the company, even if these tasks are of various natures and correspond to various professional groups, according to the company’s needs, even if they are different to those that he/she would normally do in his/her job, respecting the provisions of the legislation in force in all cases.

Under no circumstances shall changes to the duties carried out by the employee be deemed to be a substantial modification to the working conditions, since this condition is agreed as such at the beginning of the labour relationship. 

The term and remuneration for such flexibility must be within the parameters stipulated in the Collective Bargaining Agreement or the labour regulations in force.


The working day shall be that stipulated in the Collective Bargaining Agreement applicable for the company. 

(If the company has a working day that is shorter than the one stipulated in the Collective Bargaining Agreement, this must always be respected).

Given the nature of the duties to be carried out by the employee, the working hours shall be adapted to the needs of the company.

Similarly, both parties agree that services may be provided on weekends and public holidays if the needs of the company require this.


The worker undertakes to work overtime upon the request of the company, with the maximum limit stipulated in the legislation.

It is expressly agreed that any overtime that the employee may work may be compensated by the company with the same amount of paid leave. The compensation with paid leave must be given within a term of four months after the overtime (or in accordance with the provisions of the Collective Bargaining Agreement applicable for the company).


Both parties agree that additional must be worked for the contract entered into on a part-time basis, which will be paid as normal hours. In any case, the number of hours that the company may require shall be the maximum amount stipulated in the Collective Bargaining Agreement, or 30% of the normal working ours object of this contract should such provision not exist. The company shall provide prior notice as stipulated in the Collective Bargaining Agreement or, should this not exist, it will notify the employee with 3 days prior notice.


If, due to the needs of the company, the worker has to provide his/her services as night shifts, with the definition therefor being that stipulated in Article 36 of the Workers’ Statute, the company shall pay him/her an amount no less than the one stipulated in the Collective Bargaining Agreement Applicable to the company.

(if the Collective Bargaining Agreement does not stipulate anything to this effect, this shall be subject to the stipulations of the company or that agreed by the parties in this contract). 

Should the employee provide his/her services after 10 pm but not meet the minimum conditions to be deemed night shifts, as stipulated in Article 36 of the Workers’ Statute, the company shall pay these hours as overtime, as long as they exceed the normal working day (8 hours), and they shall be treated according to the conditions stipulated in Clause Six. 

(where applicable, indicate the amount to be paid as overtime)

SHIFT WORK                   

The worker shall provide his/her services according to a shift system, with the shift being set according to the needs of the company, which shall be reported to the worker with due prior notice. The worker fully accepts the shift system set by the company.

Regarding the salary, this shall be up to the company, with the limits stipulated in the applicable Collective Bargaining Agreement.

(This clause must be included where necessary and when the worker is really going to work shift, since this does not function as an open clause for the company to implement a system of shift whenever it wants to.) 


                                                POSSIBILITY 1)     

            This contract depends on the worker meeting certain agreed targets, from _______ 20___, which are listed below:

                                                                                    1) general: ______________

                                                                                    2) by product line _____________

            POSSIBILITY 2) 

            The employee, who is well aware of the situation both of the market and the company, expressly undertakes to meet the targets attached and signed as Annex ________

            POSSIBILITY 3)


            Both parties expressly agree that if the worker does not meet these targets, the contract shall be terminated.


The worker shall receive a yearly salary of ............... euros, broken down into .... monthly payments and ...... additional payments.  

(where applicable, include the salary breakdown to be made, according to the individual extras for the quantity or quality of the work or due to the company’s profits)

(it must be agreed whether the extras can be combined or not)


It is expressed agreed that, in accordance with the wishes of both the company and the employee for their mutual benefit, and taking effect as of January__, 2005, the annual salary shall be divided into 12 monthly payments and included in each of these payments shall be the corresponding proportion of any extra payments due instead of making said extra payments according to the stipulations of the Collective Bargaining Agreement. EXPENSES

In the course of fulfilling his or her professional duties the employee shall be required to travel both within the national territory and internationally as the company may see fit.

Expenses that result from these travels incurred by the worker in the performance of their duties as an employee of company __________________ shall be reimbursed, with prior documentation of the same, by the company according to the maximum amounts established to such effect in the Collective Bargaining Agreement applicable to the company, and in such case as the company establishes and those policies that the company may announce prior to said travels.


In case the employee voluntarily wishes to resign from his or her position, the employee shall be required to communicate said decision to the company in writing with a notice period of __ days/months (the agreed upon notice period shall be established in the applicable Collective Bargaining Agreement according to the professional category or group).

Breech of the requirement of prior notice with the indicated lead-time shall give the company the right to deduct from payments to the employee the amount equivalent to his or her daily salary for each day less than the period stipulated.


Given the interest and need for permanent and continual training that improves the professional qualifications of the staff, the company may convene training and professional development courses, which may be held outside of working hours, requiring the employee to attend said courses, for the sole benefit of the employee.

Notwithstanding this, and to the extent that circumstances permit, the company will adjust the ordinary working day of the employee so that professional training courses can take place within working hours.


Either of the two following texts may be used:

(Detailed clause)

During the duration of the contract and following its conclusion, the employee shall promise to not use, divulge, reveal or give third parties access to, either directly or indirectly, company information and in particular information related to:

  • Data on company operations.
  • Technological innovations.
  • Digital materials.
  • Industrial designs.
  • Client lists and details.
  • Price and costs of goods or services that the company produces or offers, including any additional items such as Extended Service Agreements.
  • Promotional campaigns for launches of new products or services including the prices, characteristics, technologies involved, etc.
  • Analytical accounting data or general accounting data of the company.
  • General information regarding the conditions and salary policies of the company.
  • Research and development.
  • Techniques in Marketing, market research, and sales systems.

(The company should indicate the items that it wishes to protect including those listed above and others not listed or those for which a generalized description is not sufficient).

Therefore, in general, all aspects related to the operations and activities of the company shall be considered confidential and secret, and cannot be divulged to third parties without expressed written permission or authorization.

(Restricted clause))

The employee promises to keep the content and terms of this present contract a secret.

The employee is also required to treat with the utmost discretion, keep secret and not divulge or give access to third parties, either directly or indirectly, and exclusively make proper use of all documents, data, specifications, information and knowledge that he or she may have access to and which he or she may have knowledge of in the course of performing their work in the company or in the activities carried out in collaboration with third parties within the framework of this present contract.

The use for personal ends or for the benefit of third parties of the previously listed items are only permitted by means of expressed, written authorization from the company.


The employee will perform his or her duties without the possibility of offering their services to any other person, entity, or company, even should that activity not be in competition with the company that is party to this agreement.

As economic compensation the company shall pay the quantity of _______ EUROS (         €) (specify the amount and indicate if it is per month or per year, etc.)

The employee may at any time rescind this agreement in writing with thirty days advance notice, recovering their freedom to work simultaneously at another job, always and when this does not entail unfair competition, ceasing to receive from that moment on the agreed upon amount of remuneration.


Both parties agree that the employee, once his or her contract has been concluded, may not provide their services or work, either directly or indirectly, for companies which are in direct competition with the activities of the company during the subsequent _____ months / years (a maximum of two year for technical staff and six months for all other employees) following the end of their employment with the company regardless of the cause.

Continue with either A or B

 a).-      The company will pay to the employee, as compensation, the sum of        .................................... EUROS (             €.) for each month that this clause is valid and the employee affirms that this economic compensation is adequate.

b).-       The company will pay the employee the sum of .................................... EUROS (             €) per month during the duration of their contract with the company as economic compensation, and which compensation the employee affirms to be adequate.

In case of selecting option “a” of giving the employee a one-time economic payment once their employment has been terminated, it is possible to add the following text:

“Should the company renounce the application of the present clause of post-contractual non-competition within a period of 15 days following the termination of the employment contract, the company shall remain exempt from paying the compensation agreed upon and the employee shall with complete freedom be able to provide their services to any companies they consider appropriate.”

(This clause may be declared null and void in virtue of the sentence of the Supreme Court of Spain of July 2, 2003 and January 21, 2004). 

“Should the employee violate the terms established in this post-contractual non-competition clause, the employee shall return to the company the indemnification they were paid under this clause so that they repay an amount equal to that of the compensation they received.”

“Notwithstanding this, the company shall have the right to recover damages and supplementary losses that the conduct of the employee may have caused, so long as said damages and losses can be proven by the company.”

Possible valid alternative, but not 100% certain because the claim may be too high:

The employee may not provide his or her services to another company or perform work for their own benefit when these activities are of a similar nature or area of production as that of …………………………, which constitutes unfair competition against the company.

Given the technical knowledge and knowledge of the sector that the employee has and the knowledge that he or she has acquired within the company in the areas of production, organization, and commercialization of same, the aforementioned prohibition of competition shall extend while the employment exists between the two parties, and shall be extended for two years following the termination of the contract if the employee is a technical worker, or six month if he or she is not. To this end, an economic compensation of .#..........#. Euros per month shall be made, with the payment structured so that it can be made in a differentiated manner. Should the employee not abide by the terms of this clause, he or she must return all the funds paid to them under this clause, which is considered by both parties to this agreement as just and fair because the damage and commercial interest is proportional to seniority and therefore greater knowledge about the productive, organizational or commercial policies of the company. Both parties recognize that there is an important industrial and commercial interest in agreeing to this clause under the agreed upon terms. Similarly the company may claim for damages and losses which company is able to document


As a consequence of the training and professional specialization that the employee has received which has been underwritten by the company, both parties agree that the employee shall remain employed by the company for a minimum period of …… months / years (in no case whatsoever shall the period of remaining with the company be longer than two years).

Should the employee not comply with the terms of the agreement to remain with the company, the company reserves the right to claim repayment from the employee for the damages and losses caused by the employee’s resignation from their position in the company, within the period established in the preceding paragraph.


The employee is obliged not to directly or indirectly participate in the defection or hiring of company personnel by other competing companies or for their own companies which may be in competition with the company, both during the life of this contract and for three years following its termination, in particular with regard to group defections.

Should the employee not abide by this clause, in addition to the pertinent demand for compensation for damages and losses, the employee shall pay the company the amount of three months’ salary of each of the employees who have left the company to go to work for the competing company.


While he or she is providing their services or after they have ceased to provide those services, the worker shall not, disclose, divulge or make public information concerning the software used or produced in the company as a result of the economic activities of the company.

Similarly, the worker may not make any individual use of such software outside of company premises, either for personal use or for use by third parties outside the company's workforce.

Any copy or reproduction of computer programs, files or documentation, by any telematic or reproductive means is totally prohibited.

The violation of these terms by the worker will be considered as a violation of good contractual faith, and will be sanctioned by the company with dismissal while reserving in right to claim damages that may arise from the actions of the worker.


The employee is obliged at the time of the termination of their employment contract for any cause, to deliver to the company all passwords which during the course of their employment they were using with computer programs or websites contracted by the company. Non-compliance with this clause will result in a claim for damages and losses of …………………


The employee may receive a vehicle for professional use. Should their work contract be suspended for any reason, the employee shall be obliged to return the vehicle to the company immediately upon request.


All computers, mobile devices, and computer programs are work related elements which are the property of the company and may only be used to carry out the work for which the employee signing this agreement is responsible. All other uses besides this are prohibited.

In particular, neither programs nor computers and their accessories or peripherals may be used for private communications, whether inside or outside the company, either receiving or sending, including the use of electronic mail (e-mail) which cannot be used for private or third party use.

The transmission of information or the dissemination of materials which does not comply with the rules of the company is expressly prohibited.

For reasons of security, technological organization, maintenance, program management, review of their good use, including any electronic or telematic media, such as email and Internet access, the company may review, intervene, store and copy those programs, computers, files, etc. it deems necessary.

With the signing of this employment contract, the employee affirms that he or she is knowledgeable of the above terms and consents to such actions, being the lawful control that the employer may exercise over the use of computer equipment, which is company property, as well as on the employee’s own work activity.


The company may use applications connected to the Internet such as systems of work logs during the day, and other applications related to work, for which the employee shall be obliged to use of the applications …………… on their private mobile telephone in case the company does not provide a mobile to the employee.


All inventions created by the employee during the life of their employment contract and which are the results of an investigative activity constituted under their contract and which have been carried out using materials provided by the company or using knowledge acquired within the company shall belong to the company. 

The employee will not be entitled to receive additional remuneration for the creation of such inventions, provided that his personal contribution to the invention does not exceed the explicit or implicit content of his or her employment contract.

The employee promises to keep as secret all information about the inventions that the company is developing, be they their own or those of employees of the company, until they are made public by the management of the company.

Failure to maintain confidentiality shall be considered a breach of contractual good faith, with the consequences that may be legally derived therefrom. Similarly, the company reserves the right to claim compensation for any damages that may arise from the negligent attitude of the worker in violating the above.


In all instances the employee must respect the safety and hygienic standards established by the company, as well as the proper use of protective gear, whether for individuals or groups, that the company makes available in compliance with the provisions of the Law of Prevention of Occupational Risks and its own established policies.

In accordance with the above, the company will provide the worker with the indications, material and safety and hygiene procedures to be adopted at each stage of the production process, as well as hygienic precautions to be observed in each area of the company.

In this sense, the worker must observe the specific provisions that the company will communicate to him, regarding the safety and hygiene measures to be carried out in the various zones or areas.

Before beginning to work the employee must communicate to the company if he suffers from any illness or disability that must be taken into account depending on the type of work to be done. In such case, the worker will be obliged to request and submit to a medical examination that shall be necessary not only to assess the aptitude of the worker prior to such incorporation, but to take the necessary measures to adapt the position.


During the period of employment, the company will contract life insurance in favor of the employee, in compensation in the event of death due to accident or illness. Both parties agree that the compensation received by this concept will be considered as payment on account of any other amount that could be recognized as a consequence of civil liability, and must be deducted from it in all cases.


This present employment contract shall be governed by the provisions of the State Collective Bargaining Agreement of companies of ............... provided that it is in force. If not, it will be stipulated in this contract and in the provisions of the Employee’s Statute.


The employee declares that the following address: ………… is to be used for the purpose of delivering any notification that the company cares send to him or her, being understood by both parties to be validly made communications. Therefore any variation of the same must be notified to the company with proof of receipt, and breach of this clause will not have negative effects on the company as long as it has acted in good faith.


Both parties agree that if at any time during the employment relationship the worker no longer has the required permission to work in Spain, the contract will be automatically voided without the need for prior notice and without the right to any compensation.


The company wants to present a specific image according to the sector in which it operates, and which takes into account the tastes and preferences of customers or potential buyers, so that both parties agree that the image of the employee will be ...........; the way of dressing will be with ......; removing / displaying ...... .piercings ...... .. visible; and the employee will keep their hair loose / tied back during work hours.


The present Contract can be terminated if the worker withdraws in any of the following cases:

  1. a) Without specifying any cause, giving ……. months’ written notice. In this case, the worker will not be entitled to receive compensation. In the event of non-compliance of the written notice period, the company will be entitled to receive a compensation corresponding to the proportional amount of the salary of the worker equivalent to the breached notice period.
  1. b) Based on any of the following causes that will cause a breach of the contract with right to an indemnification of  ……………. non excluding caused damages:
  1. Substantial contractual modifications in worker’s conditions that notably prejudice his professional career, impairing his dignity, or taken with grave transgression of company’s good faith.
  2. Non salary payment of the agreed salary, or continued delay. 
  3. Any other grave breach of Company’s contractual obligations, except for major causes where will not apply the present clause.

The present Contract can be terminated if the Company wishes so, in accordance with the following terms:

  1. a) Due to withdrawal, without specifying any cause and giving a minimum of …………. months’ written notice. In this case, the worker will be entitled to receive an indemnification of …………. In the event of non-compliance of the written notice period, the worker will be entitled to receive a compensation corresponding to the proportional amount of his salary equivalent to the breached notice period.
  1. b) Due to the worker being dismissed, due to serious and culpable breach on the worker’s part. In this case, the worker will not be entitled to receive any compensation, except if this dismissing would be declared unfair by any Court, where the Company will have to pay a compensation of ………………. If the dismissal would be declared against fundamental rights, the Company will additionally pay a …………….. indemnification for damages.
  1. c) In case the Company would extinguish the contract because economic, technical, productive or organizational motives, individually or within a collective dismissal, the Company will have to pay the worker a compensation of …………… If any Court declares this extinction unreasonable or unfair, the company will have to pay an additional compensation of …………….

All the previous established compensation amounts for the worker’s indemnity, will be net taken.

Termination of the Contract must be done in writing, and contradictory fill will be necessarily instructed.

Apart from this clause, any contractual termination will bear the necessity to pay the proportional liquidation parts of salary, vacation, extra-payments, and bonus.