Employment Contracts and Social Security in Spain

Posted on Feb 12, 2025 in Tourism

Employment Contracts in Spain

For People with Disabilities:
- Concept: The objective is the hiring of temporary workers with disabilities at a grade equal to or greater than 33% who are registered as unemployed at the Employment Office.
- Duration: Must be no less than 12 months and no more than 3 years.
- Incentives: The company is entitled to bonuses.
- Denouncement: Must be effected a minimum of 15 days in advance.
Advance Replacement for Retirement:
- Concept: To replace workers who seek to anticipate their retirement from 65 to 64 years of age.
- Requirements: A worker who retires must be 64 years old.

Indefinite Contract (Ordinary Indefinite):
- Concept: Aims to recruit workers indefinitely.
Contract to Promote Indefinite Contracts:
- Concept: Its objective is the indefinite hiring of workers who belong to groups with difficulties entering the working world.
- Requirements:
  - Young unemployed people from 16 to 30 years old.
  - Unemployed women when they are engaged to serve in professions or occupations that have a low index of female employment.
  - Unemployed for at least 6 months who are registered as job applicants.
  - Unemployed over 45 years old.
  - People with Disabilities.
  - Conversion into indefinite-term contracts signed before 12/31/07.
- Compensation: If dismissal is declared inadmissible for objective causes, it generates a right to compensation for employees of 33 days’ salary per year of service, up to a maximum of 24 months.
- Incentives: If it meets the requirements of Law 43/2006, it will be eligible for incentives for permanent contracts.
Subsidized Permanent Employment Contract:
- Concept: It aims for an indefinite hiring of workers belonging to groups covered by this Royal Decree Law, with the incentives provided.
Indefinite Contract of Employment for People with Disabilities:
- Concept: Contracting for disabled workers indefinitely, with a degree of disability of 33% at least, registered in the Employment Office, even if they are not unemployed.

Part-Time Contract:
- Concept: Aims to provide services for a number of hours per day, week, month, or year, lower than the working day of a comparable full-time worker.
- Duration: Can be of a determined or indefinite duration.
- Overtime: Cannot be performed, except in cases of force majeure.
- Salary: Should be proportionate to the day worked.
Contract for the Execution of Fixed-Discontinuous Jobs:
- Concept: It is a permanent contract to perform part-time jobs that are repeated every year, within the normal volume of activity of the company.
- Duration: Subscribed annually while working a few months or weeks.

Registration of the Company in Social Security: In order to recruit workers, the company must register with Social Security. This registration is only for the entire country.
- Location: Treasury of the town where Social Security is domiciled or the Social Security administration.
- Deadline: Prior to the start of the activity.
Affiliation of Workers: Act of workers by which Social Security is assigned a number that has a permanent character.
- Location: Same as above.
- Deadline: Prior to the start of work.
Registering Workers: Whenever a worker is hired. The obligation to contribute arises when the worker is registered.
- Location: Same as above.
- Deadline: Same as above.
Deregistration and Variation of Workers: Ceremony communicating the termination of services of the employee or the variation in the company data.
- Location: Same as above.
- Deadline: 6 days from the termination or variation of data.
Contribution to Social Security: Both employers and workers must contribute to Social Security.
- Location: Banks and financial institutions, and the treasury of Social Security.
- Deadline: Within the month following their accrual.

Hand in basic contracts to worker representatives within ten days.
Communicate the contracts to the Employment Office within ten days from the subscription (a basic copy signed by representatives must be attached).
Provide a copy to the employee.