Understanding Employment Contracts in Spain

Indefinite Contracts

These contracts have no termination date and may be oral or written.

Class: Indefinite Contracts - Ordinary

Promoting Employment

Aimed at groups most affected by unemployment:

• Unemployed individuals over 45 years old.
• Youth up to age 30 seeking their first job.
• Long-term unemployed (more than 6 months).
• Unemployed women.
• Disabled individuals.

Companies that utilize this type of contract receive bonuses.

Fixed Batch Contracts

These are fixed-term contracts performed discontinuously.

Fixed-Term Contracts

These contracts have a set end date.

Class of Fixed-Term Contracts

By Job or Service

• Purpose: For work or services not part of normal business activity.
• Duration: Indefinite.

For Reasons of Production

• Purpose: When a company is increasing production.
• Duration: Cannot exceed 6 months within a year.

On Interim

• Purpose: To substitute a worker who is temporarily absent from their job.
• Duration: For the absence of another worker.

Training Contracts

These are framed within temporary employment-based training.

Kinds of Training Contracts

Contract Practices

• Purpose: For individuals with a degree, within 4 years after qualification.
• Trial Period: One month for those with a degree, two months for others.
• Salary: First year: 60% (minimum) of an average worker's salary. Second year: 75% (minimum) of an average worker's salary.
• Duration: Minimum 6 months, maximum 2 years.

Contract Formation

• Purpose: To engage young people between 16 and 21 years old without qualifications.
• Learning: 15% of the day is devoted to theoretical learning.
• Salary: As per convention, but never below the minimum wage.
• Duration: Minimum 6 months, maximum 2 years.

Other Contracts

Replacement Contracts

• Purpose: To cover the job of a worker aged 61 who wants to access a partial pension. Also used when early retirees are not eligible to keep their job.

Part-Time Contract

• Purpose: To provide services on a normal working day. Extra hours cannot be performed.

ETT (Temporary Employment Agencies)

• Purpose: Agreement for provision. Temp agencies make workers available to other companies (clients) for recruitment. Temp agencies act as intermediaries. The salary is paid by the ETT. Sanctions or dismissals are handled by the ETT and the user company directing the activity.

Outsourcing Companies

• Purpose: Hiring another company to carry out certain works.

Chain of Temporary Contracts

• Purpose: To prevent abuse of temporary contracts. If within 30 months, 24 months of continuous temporary contracts are used, the contract takes on an unlimited character.