Temporary or Fixed-Term Contract in Spain: How it Works
Temporary contracts, also known as fixed-term contracts, are a common form of employment arrangement in Spain. These contracts allow employers to hire workers for a specific period or project, providing flexibility for businesses while also offering employment opportunities. In this article, we will delve into the different types of temporary contracts available in Spain, their characteristics, and the regulations surrounding their use. Whether you are an employer considering hiring temporary staff or an employee seeking to understand your rights, this guide will provide valuable insights into the world of fixed-term employment in Spain.
Temporary or Fixed-Term Contract in Spain
In Spain, temporary or fixed-term contracts are designed for specific, short-term employment needs and are less common compared to indefinite-term contracts.
Recent legislation introduced in December 2021 by the new Spanish Labor Law, in fact, has imposed strict regulations on the use of fixed-term contracts, generally encouraging employers to favor indefinite-term agreements. Under the new law, temporary contracts are now permissible primarily in two scenarios:
- When there is a temporary increase in workload beyond the company’s normal production requirements, limited to six months within a twelve-month period.
- For substituting employees who are temporarily absent but retain the right to return to their position, lasting for the duration of the absent employee’s entitlement.
Fixed-term contracts must be made in writing and should detail the reason for their temporary nature, including the circumstances justifying it and its connection with the expected term. If a contract fails to specify these details or if the reason does not align with legally established grounds, it may be considered indefinite by default. Despite the limitations, temporary contracts offer advantages such as lower compensation obligations upon termination compared to permanent contracts in Spain. However, it is essential to note that the unjustified use of temporary staff or breaches of obligations can convert the temporary employment into an indefinite one.
The new law has significantly tightened the regulations surrounding the use of temporary contracts, with the aim of encouraging employers to favor permanent employment agreements. Under the new law, only 18% of all employment contracts in Spain are temporary, a notable decrease from previous years. Under the new legislation, there are only two types of temporary contracts:
- Structural Contracts: These contracts are used when there is a temporary increase in workload or for substituting employees who are temporarily absent but retain the right to return to their position.
- Training Contracts: These contracts are designed to provide employment opportunities while offering training and professional development to the employee.
For businesses navigating the intricacies of temporary contracts in Spain, staying compliant with the latest regulations is essential. Lawants offers comprehensive Labor Consultancy services, providing expert guidance on creating compliant employment contracts, understanding employer obligations, and ensuring every hire aligns with Spanish labor laws. Trust Lawants to assist your business in Spain with dependable, knowledgeable support on all aspects of temporary employment. Contact us for more details.
Structural Contracts
Structural contracts are a type of temporary contract in Spain that cater to specific circumstances. There are two main categories of structural contracts: contracts for production circumstances and contracts for the replacement of a worker. The former is used when there are occasional and unpredictable increases in workload, causing a temporary imbalance between the stable employment available and the workforce needed. These contracts have a maximum legal duration of six months, although sectoral collective agreements can extend it to one year. Additionally, companies may use these contracts to deal with unusual and foreseeable situations of reduced and delimited duration, with a maximum of 90 days in the calendar year. Upon termination of these contracts, workers are entitled to compensation equivalent to 12 days of salary per year of service.
The second category, contracts for the replacement of a worker, is used when the replaced person has a job reservation. The contract must specify the name of the person being covered and the reason for the substitution. The provision of services can begin 15 days before the absence occurs and continues until the worker’s reincorporation. These contracts can also be used to complete the reduced working day of an employee or for the temporary replacement of a job until its permanent filling through a fixed contract, with a maximum duration of three months or the shorter duration established by the collective agreement.
Training Contracts
Training contracts in Spain are designed to provide vocational training and work experience to individuals, particularly those under 30 years of age. There are two main types of training contracts: the work-linked training contract and the apprenticeship contract. The work-linked training contract allows for the coordination of paid work activity with training processes in vocational training and university studies. This type of contract is specifically targeted at people under 30 years old and has no trial period. The duration of a work-linked training contract cannot be less than three months (previously one year, reducible to six months through collective bargaining) nor exceed two years (previously three years).
The apprenticeship contract, on the other hand, aims to provide professional qualifications to workers through alternating paid work activity with vocational training processes in the workplace. This type of temporary contract is also intended for individuals under 30 years of age, although there are exceptions for people with disabilities and socially excluded individuals. The duration of an apprenticeship contract ranges from one to three years, with the possibility of extending it for an additional year through collective bargaining. These training contracts offer valuable opportunities for young professionals to gain practical experience and develop their skills while receiving a salary and formal training, ultimately facilitating their integration into the Spanish labor market.
Contract to Secure a Professional Internship
There are also contracts to secure a professional internship, a specific type of temporary contract in Spain designed for individuals who have recently completed their education. This contract is available to those who hold a university degree, a vocational training or higher education diploma, a specialist degree, a master’s degree, or a certificate from the professional training system. Recently, the eligibility has been extended to include graduates in art or sports education through the education system.
One of the key characteristics of this fixed-term contract is the maximum trial period of one month, which can be extended under collective bargaining agreements. This trial period allows both the employer and the intern to assess the suitability of the arrangement before committing to the full duration of the contract. It is important to note that the duration of the contract to secure a professional internship cannot exceed one year, a reduction from the previous limit of two years. However, an exception is made for people with disabilities or those in a situation of social exclusion, where the contract duration may be extended beyond the one-year limit.
Following the labor reform that came into effect in Spain on December 31, 2021, companies were given a three-month transition period to adjust the contracts of their current workers. By March 30, 2022, employers were required to define their hiring strategies for future workers, taking into account the new regulations surrounding internship contracts. This reform encourages companies to anticipate, plan, and organize their staffing needs to ensure compliance with the updated legal framework.
Extending Fixed-Term Contracts in Spain
While fixed-term contracts in Spain are designed for specific, temporary employment needs, there are situations where these contracts can be extended. The exact rules for extending a fixed-term contract depend on the type of contract and the applicable collective labor agreement. For ordinary fixed-term contracts, the maximum duration is typically 24 months within a 36-month period. If a fixed-term contract is used to cover an employee who is temporarily away from work, such as on maternity leave, the contract can run until the employee returns to their position.
Internship or work experience contracts in Spain are generally renewable, provided that the initial contract is shorter than one year and the employee has not yet obtained their Professional Certificate. However, training and apprenticeship contracts cannot be renewed. It is important to note that employees who have been engaged on a fixed-term contract for longer than 24 months within a 36-month period, whether through continuous or interrupted contracts, acquire the status of permanent employees according to the Spanish Workers’ Statute (Estatuto de los Trabajadores). This provision helps to protect workers from being indefinitely employed on temporary contracts and ensures their transition to a permanent conbtract when appropriate.
How Lawants can Help
Navigating the complex world of temporary contracts in Spain can be challenging for businesses and individuals alike. That’s where Lawants comes in. As a team of experienced international lawyers, accountants, and labor consultants specializing in assisting companies and entrepreneurs with interests in Spain, Lawants is well-equipped to guide you through the process of hiring temporary staff or understanding your rights as a fixed-term employee.
Whether you need assistance drafting compliant temporary contracts, ensuring adherence to the latest regulations, or resolving disputes related to fixed-term employment, Lawants has the expertise to help. With a deep understanding of the Spanish legal system and a commitment to providing personalized, reliable service, Lawants is your trusted partner for navigating the intricacies of temporary contracts in Spain. Contact Lawants today to learn more about how they can support your business or individual needs in the realm of fixed-term employment.
