Types of Employment Contracts in Spain: A Comprehensive Guide
Types of Employment Contracts in Spain
Permanent Contracts
A permanent contract arranges services for an unlimited time. It can be oral or written, with some exceptions (e.g., construction under permanent contract programs for disabled individuals). Certain situations automatically result in a fixed contract, regardless of the initial contract type:
- Workers discharged from Social Security
- Workers on temporary contracts used to evade the law
Agreement for the Promotion of Permanent Contracts
This agreement aims to facilitate stable employment for unemployed workers and those in temporary positions. The contract is for an indefinite period and may apply to:
- Unemployed workers registered with INEM (Spanish National Employment Institute) meeting specific conditions:
- Aged 16 to 30 (inclusive)
- Unemployed women recruited for professions or occupations with lower female employment rates
- Workers over 45 years of age
- Long-term unemployed (registered as job seekers for over six months)
- Disabled workers
- Workers employed under a fixed-term or temporary contract (including training contracts) at the start of an indefinite contract
Companies may not enter into this type of contract if, within the preceding six months, they terminated contracts for objective reasons declared inadmissible or made redundancies, unless the dismissal complies with the Employment Regulation File. If the contract is terminated for objective reasons and declared inadmissible, compensation is 33 days’ salary per year of service, prorated for periods less than a year, up to a maximum of 24 months.
Temporary Contracts (Interim Contracts)
This contract replaces a worker entitled to job reservation, temporarily covering their role during selection or promotion processes. The contract duration is either the length of the replaced worker’s job reservation or the selection/promotion process (maximum three months). It ends when the replaced worker returns or the new hire starts, or after the three-month selection period.
An interim contract becomes indefinite if:
- Upon the expected termination, neither party explicitly ends it, and work continues.
- It lacks written form.
- Social Security registration is missing, and the probationary period has passed.
In these cases, the contract is considered indefinite unless proven otherwise.
Contracts to Evade the Law
Interim contracts are typically full-time, with exceptions:
- When the replaced worker was part-time or the temporary position is permanently part-time.
- When supplementing a part-time worker with legal guardianship rights or a temporary reduction in the replaced worker’s workday.
These contracts must be in writing, specifying the contract type, work to be done, the replaced worker, and the reason for replacement. Employers must inform employees about vacancies and facilitate access through continuous training, demonstrating the agreement.
Contract for Work or Service
This contract covers performing a specific work or service independently, with an uncertain duration. It outlines the jobs or tasks covered and lasts until the work or service is complete. If longer than one year, 15 days’ notice is required for termination. Failure to comply results in compensation equal to the salary for the missed notice period.
This contract becomes permanent if:
- It’s not in writing.
- Social Security registration is missing after the deadline.
- Work continues after the contract ends without objection from either party.
Contracts in fraud of the law are presumed indefinite. The contract can be indefinite or for a specific task and must be in writing, clearly stating the contract type and the work/service. Employers must inform employees about vacancies to ensure equal access to permanent positions. Collective agreements may outline measures to facilitate access to permanent contracts for these workers.
Contract for Production Circumstances
This contract addresses market demands or excessive order backlogs within a firm. Collective agreements may define activities suitable for temporary workers and criteria for compatibility with the existing workforce. The maximum duration is six months within a year, though collective agreements may modify this.
It becomes permanent (unless proven otherwise) if:
- It’s not in writing.
- Social Security registration is missing within the deadline.
- Work continues after the contract ends.
Contracts in fraud of the law can be full-time or part-time. They must be in writing if they last over four weeks or are part-time. Companies must inform workers about vacancies and, through collective agreements, facilitate access to continuing vocational training.