Labour Reform

Royal Decree-Law 32/2021, of 28 December, on urgent measures for labour reform, the guarantee of employment stability and the transformation of the labour market aims, among other things, to put an end to temporary and precarious employment in the Spanish labour market, as well as to increase company competitiveness and productivity levels by training workers.

Labour Reform has introduced new training and fixed-term contracts:

—  New Training contracts:

  • Training contract in alternation
  • Training contract for obtaining professional practice

—  New Fixed-term contracts:

  • Contract due to circumstances of production
  • Contract for substitution

Labour Reform

TRAINING CONTRACT IN ALTERNATION

The new training contract in alternation aims to make paid work activity compatible with the corresponding training processes. This contract replaces the former training and apprenticeship contract. It may be entered into with persons without professional qualifications.

The activity performed by the employee must be directly related to training activities, coordinated and integrated into a common training programme. The figure of the tutor is subject to the regulations, as well as the individual training plans prepared for every worker.

 

The most important aspects of the new contract in alternation are as follows:

—  The minimum duration shall be three months and the maximum duration shall be two years, which may be completed on a non-continuous basis.

—  There is no trial period.

—  Workers cannot work overtime, at night or in shifts (with some exceptions).

—  Remuneration shall be that established by the collective bargaining agreement. When this is not regulated, the compensation may not be less than 60% (first year) or 75% (second year) of the amount established for the corresponding professional group or level, never being under the minimum wage.

—  The effective working time (compatible with training) is subject to limits: 65% in the first year and 85% in the second year.

—  Generally, only one contract may be concluded for each training cycle.

Labour Reform

TRAINING CONTRACT FOR OBTAINING PROFESSIONAL PRACTICE 

The new Training contract for obtaining professional practice aims to achieve work practice in line with the corresponding educational level. This contract replaces the former work experience agreement. It must be entered into with persons within three years following the completion of the corresponding studies (extendable to five years in the case of the disabled).

It may not be executed with anyone who has already obtained work experience, or who has carried out training activities in the same activity at the company for a period of more than three months. A person may not be hired for the same any longer than the maximum period, even if it involves a different qualification or certificate. 

 

 

The most relevant aspects of the new contract for obtaining professional practice are as follows:

—  The minimum duration shall be six months and the maximum duration shall be one year, but the collective bargaining agreement for the industry can specify other limits between these two limits.

—  A maximum trial period of 1 month may be established (except as provided by the collective bargaining agreement).

—  Workers cannot work overtime.

—  The job must allow for suitable work practice according to the educational or training level under the contract. An individual training plan shall be drawn up.

—  Remuneration for the effective working time will be that established in the applicable agreement at the company for these contracts or, in its absence, the remuneration corresponding to the professional group or level. The remuneration may at no time be less than the minimum remuneration established for the contract for training in alternation or the minimum wage.

—  The employee shall have the right to obtain certification regarding the content of the internship performed.

Labour Reform

FIXED-TERM CONTRACT DUE TO CIRCUMSTANCES OF PRODUCTION 

The new Fixed-term contract due to circumstances of production could be based on two types of production circumstances:  a) Occasional, unforeseeable increases and any variation that (even though within the normal activity) create a temporary mismatch (including those caused by annual vacations); b) Occasional, predictable increases with a reduced/limited duration. This contract replaces former contracts for project work or services and casual contract to cover temporary demand for production.

Persons with temporary and fixed-term contracts shall have the same rights as persons with indefinite term contracts. Employees hired in breach of the temporary regulations will acquire the status of permanent employees.

The most relevant aspects of the new fixed-term contract due to circumstances of production are as follows:

—  In the event of Occasional, unforeseeable increase and any variations that (even though within the normal activity) create a temporary mismatch (including those caused by annual vacations):

  • Maximum duration: may not exceed six months (extendable to twelve months through the collective bargaining agreement for the industry).
  • A single agreed extension may be granted, provided that the maximum limit is not exceeded.

—  In the event of Occasional, predictable increases with a reduced/limited duration:

  • Maximum duration: ninety days per calendar year, regardless of the number of workers required on each of these days to meet the specific situations that justify the hiring, which must be duly identified in the contract.
  • These ninety days may not be used on a continuous basis.
  • The company must inform the workers' legal representatives of the annual use foreseen for these contracts.
  • The performance of work under contracts, subcontracts or administrative concessions that are the company's usual/ordinary activity may not be identified as the reason for this contract.

—  Permanent status is acquired by those who, in a period of twenty-four months, have been hired for more than eighteen months, with or without solution of continuity, for the same or different job with the same company or group of companies, through two or more contracts due to circumstances of production, directly or through temporary employment agencies.

—  Workers who have not been registered after the expiration of a period equal to or greater than the legally established trial period will acquire the status of permanent employees.

Labour Reform

FIXED-TERM CONTRAT FOR THE SUBSTITUTION OF EMPLOYEES 

The new fixed-term contract for the substitution of employees could be used based on several types of causes:  a) Substitution of a worker with the right to reserve their job; b) To complete the reduced working day of another worker; c) Temporary coverage of a job position during a selection or promotion process. This contract replaces the former relief contract. 

Persons with temporary and fixed-term contracts shall have the same rights as persons with indefinite term contracts. Employees hired in breach of the temporary regulations will acquire the status of permanent employees.

The most relevant aspects of the new fixed-term contract for the substitution of employees are as follows:

—  Substitution of a worker with the right to reserve their job, provided that the name of the person replaced, and the cause of the replacement are specified in the contract.

  • It may begin before the absence occurs, coinciding with the substituted employee for the time necessary to ensure proper coverage of the position.
  • Maximum Duration: fifteen days.

—  To complete the reduced working day of another worker when such reduction is covered by legally or conventionally established causes.

  • The name of the person partially replaced and the cause of the substitution must be identified.

—  Temporary coverage of a job during a selection or promotion process to be covered by a permanent contract.

  • Maximum Duration: the duration may never exceed three months.

—  Permanent status is acquired by those who in a period of twenty-four months have been hired for more than eighteen months, with or without solution of continuity, for the same or different job with the same company or group of companies, through two or more contracts due to circumstances of production, directly or through temporary employment agencies.

—  Workers who have not been registered after the expiration of a period equal to or greater than the legally established trial period will acquire the status of permanent employees.

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