Understanding Labor Relationships and Contract Types in Spain

Posted on Oct 2, 2024 in Economy

Unit 2: Labor Relationships

Working Agreement

An agreement between a worker and an employer, not always in writing.

Subjects

Worker
  • Individual:
  • Age and Capacity:
    • Disabled: Persons under 16 years (except performing artists). Those over 18 years declared incapable by court.
    • Limited Capacity: People over 16 and under 18 years (requiring authorization from parent/guardian).
    • Full Capacity: People over 16 years emancipated (married or independent of their parents) and those over 18 years.
  • Other Requirements:
    • Degree (if required, the contract may be invalid without it).
    • Work permit and residence for foreigners outside the EU.
Business
  • Can be a natural person, legal entity (SL, SA, Cooperative), or joint ownership (e.g., community owners).

Elements of a Working Agreement

  • Purpose: The activity agreed upon.
  • Consent: The agreement of both parties.
  • Cause: Exchange of labor for compensation (salary).
  • Form and Duration:
Form and Duration

No Specific Form Required:

  • Oral:
    • Ordinary permanent contract (any contract less than or equal to 4 weeks).

If either party requests it, the agreement must be in writing.

  • Written:
    • Contract work and service:
      • Interim contracts
      • Temporary contracts
  • Written and Official:
    • Agreement for the promotion of permanent contracts:
      • Contract for Employment
      • Contract integration enterprise
      • Experience contract
      • Training Contract
      • Part-time contracts

Probation Period

A clause in the contract.

Features
  • Voluntary unless stated otherwise.
  • Must be written in the contract.
Duration

General:

  • Regulated by Collective Agreement.
  • Technical Graduates – Max 6 months.
  • Other workers – Max 2 months.
  • Businesses with less than 25 employees – Max 3 months.

Experience Contract:

  • Intermediate graduates – Max 1 month.
  • Higher degrees – Max 2 months.
Rights During the Trial Period

The same as any other worker, with one exception: When the employment relationship ends without just cause or notice of termination, there is no compensation or obligation to express it in writing.

Types of Contracts

Indefinite Contract

Agreement for the Promotion of Permanent Contracts

Objective:

  • Facilitate the incorporation of unemployed individuals, particularly those from groups affected by unemployment, into the labor market.
  • Promote job security by transforming temporary contracts into permanent ones.

Target Groups:

  • Persons over 16 and under 30 years old.
  • Persons over 45 years old.
  • Disabled individuals with a disability greater than or equal to 33%.
  • Women employed in underrepresented industries.
  • Women entering the labor market after 5 years of inactivity.
  • Women within 2 years of childbirth, adoption, or foster care.
  • Unemployed job seekers (minimum 1 month continuously).
  • Individuals completing temporary or fixed-term contracts and transitioning to permanent contracts.
  • People experiencing social exclusion (immigrants, released prisoners, women in situations of gender violence).

Features:

Upon termination of the contract for objective reasons and declared improper, compensation is 33 days per year of service, with a maximum of 24 months.

Fixed-Term Contract

Work or Service Contract

Objective:

Performing a task, project, or service with a limited duration and distinct from the company’s normal activity.

Duration:

Maximum of 2 years, extendable by 1 more year through a collective agreement.

Compensation:

8 days of salary per year worked, gradually increasing up to 12 days.

Eventual Contract

Objective:

Addressing the accumulation of tasks, excess orders, or production needs.

Duration:

Maximum of 6 months within a 12-month period.

Compensation:

Same as the work or service contract.

Interim Contract

Objective:

  • Replacing a worker eligible for leave or job reservation (maternity leave, temporary disability).
  • Performing a job while a permanent position is being filled.

Duration:

  • In the first case, the duration of the right to reserve the job.
  • In the second case, a maximum of 3 months.

Compensation:

No right to compensation.

Form:

Written, but not required to be in official form.

Training Contracts

Experience Contract

Objective:

Applying knowledge acquired through a qualification.

Requirements:

  • Degree obtained within the 5 years prior to the contract.
  • Performing functions related to the degree.

Duration:

Minimum of 6 months and maximum of 2 years. Can be accumulated across several companies up to a maximum of 2 years.

Wage:

  • Year 1 – 60% of the salary of a worker in the same category.
  • Year 2 – 75% of the salary of a worker in the same category.
  • Never less than the minimum wage (SMI) €633.30.

Form:

Must be in writing and in official form.

Training Contract

Objective:

Combining practical work with learning a trade or profession.

Requirements:

  • Over 16 and under 21 years old.
  • Under 24 for workshop schools/craft centers.
  • No age limit for disabled individuals.
  • No prior qualification in the profession.

Duration:

  • Minimum of 6 months and maximum of 2 years, can be extended to 3 years by collective agreement.
  • Maximum of 4 years for disabled individuals.