In the following cases, a contract for the promotion of indefinite-term employment could be entered into:

• Unemployed workers registered at the employment office, in the following events:
  • Young people from 16 through 30.
  • Unemployed women, when hired to render services in activities with a lower index of women employment.
  • People over 45.
  • Unemployed people who have been registered for at least three months as jobseekers.
  • People with disabilities.
  • Unemployed people who, during the two years before the signature of the contract, have been employed only under temporary contracts, including training contracts.
  • Unemployed people who, during the two years before the signature of the contract, have had an indefinite-term contract terminated at a different company.
• Employees who are employed under a fixed-term or temporary contract, including training contracts, and and such contract is converted into an indefinite-term contract in the following periods: (i) contracts prior to June 18, 2010, if the conversion into an indefinite-term contract occurs before December 31, 2010 and (ii) contracts entered into from June 18, 2010 onwards if the conversion into an indefinite-term contract occurs before December 31, 2011, provided that their duration has not exceeded six months (this maximum term will not apply to training contracts).

 

In case of termination of contracts for the promotion of indefinite-term employment based on objective grounds, if the unfairness of the dismissals is declared or recognized the severance payment to be received by the worker amounts to 33 days' salary per year of service (instead of the general rule amounting to 45 days of salary per year of services).

Moreover, the Wage Guarantee Fund will pay directly 8 days' salary per year of service as part of the indemnity for the indefinite-term contracts that have been entered into after June 18, 2010, when they are terminated on objective grounds, collective dismissals, or procedures of the Insolvency Law, provided that the contract must have had a duration exceeding one year.

For more information on Investment aid & incentives, please download the following document:

Investment aid and incentives (1572kb.)

pPrepared by Garrigues

Last updated: 12|07|2010