Maybe this is the socialist European in me, but I can't believe that.

I dunno what to tell you bud but it's 1000% true. I've had a dozen jobs and never had a contract.

Without a contract, the employer isn't obligated to pay you

Yes, they are.

Even if it's just sealed with a handshake, there is a legal framework for both parties.

Handshakes are not legally binding, nor are verbal contracts.