Employment Contract Types: Indefinite and Temporary

Types of Employment Contracts

A) Indefinite Contract

Indefinite Contract to Support Entrepreneurs

  • Valid while the unemployment rate does not fall below 15%.
  • For companies with less than 50 employees.
  • Full-time contract.
  • In writing on the official form.
  • 1-year probation. Cannot be established when the employee has already performed the same functions in the company.
  • Tax credits if they hire under 30 years old with less than 3 months unemployed.
  • Social Security bonuses if the employer hires a person under 30, or women in underrepresented sectors over 45 years old, as long as the employer keeps the contract for three years and the employment level in the company for one year.
  • The employee has the possibility to receive the salary and 25% of the unemployment benefit.

Seasonal Contract of Indefinite Duration

  • Contract subscribed to perform jobs that have become seasonal and are not repeated on certain dates within the normal volume of business activity.
  • If the jobs are repeated on certain dates, the regulation to apply will be that established for the indefinite part-time contracts.
  • Seasonal employees shall be called according to the conditions established in the collective agreement.
  • Right to claim for termination of the employment in a judicial proceeding if the worker isn’t called.

B) Temporary Contracts

Contract for Well-Defined Tasks or Projects

  • Reason: the existence of a well-defined task or project of a temporary character.
  • Maximum duration of three years, extendable for another 12 months by sectorial collective agreements.
  • It may be full or part time.
  • In writing.
  • The contract expires when the task or project is ended.
  • At the end of the contract: compensation of 12 days of salary.

Contract for Peak Demand or Excessive Workload

  • Reason: The existence of a temporary shortage of manpower in the company, as compared with the actual workload.
  • Maximum duration 6 months. Collective agreement may establish a maximum duration of up to 12 months.
  • It may be a full or part time contract.
  • The contract shall be in writing.
  • At the end of the contract: compensation of 12 days of salary.

Replacement Contract

  • Reason: the replacement of an employee who is on leave or whose contract is temporarily suspended, and enjoys the right to have his job held in reserve.
  • Duration: linked to the cause for the replacement.

Practical Training Contract

  • Its purpose is to facilitate the acquisition of appropriate professional practice adjusted to the level of education and training.
  • For those who have obtained in the last 5 years a professional or college degree.
  • Duration: min. 6 months, max. 2 years.
  • Employment may be full or part time.
  • Shall be in writing.
  • Payment will be established in the collective agreement.
  • In other case, 60% or 75% (for the 1st and 2nd year respectively) of the salary for other workers in the same job or equivalent.

Apprenticeship Contract

  • Purpose: professional qualification. It combines a paid job with a training activity.
  • For those under 25 with no degree or professional certificate.
  • The 25 yr. old limit is extended to 30 while the unemployment rate does not fall below 15%.
  • Duration: min. 1 year, max. 3.
  • The working time may not exceed 75% during the 1st year, or 85% during and 2nd and 3rd year of the maximum daily working time.
  • Payment will be proportional to the working time, never less than the minimum wage.

Retiree Replacement Contract

  • Reason: to replace those who can retire before reaching the legal retirement age.
  • Allows for the temporary employment of a new employee to replace the employee who, being at least 61 years old, has exercised his right to partial retirement.
  • Duration: until the retiree reaches the legal retirement age and decides to retire.