Only one in ten workers on temporary contracts manage to change their status to permanent contracts., The OECD's latest report, a rate that is well below the European average. Despite its advantages, the ordinary permanent contract is not as widespread as it could be in Spain.
However, This type of contract has benefits not only for workers but also for companies, Do you want to know what this form of agreement consists of and what types there are? Would you like to understand when it is used and what requirements it has? In this post we help you to find out.
According to the Contracts Guide, published by the Servicio Público de Empleo Estatal (SEPE), the permanent contract “is that which is concluded without setting time limits on the provision of services in terms of the duration of the contract”.”.
In other words, unlike other types of contract, such as temporary, training or internship contracts, the permanent contract does not have a specific termination date, but rather a specific expiry date. the employment relationship between company and employee lasts until it is broken by either party.
This model is used by companies to fill regular and permanent posts that are carried out on a fixed and constant basis., as part of the company's economic activity.
An open-ended contract is a contract between employee and employer, binding the former to an employment relationship with the company in which no maximum time limits on the provision of services are specified., The duration of the contract is determined by the duration of the contract. It may be concluded on a full-time or part-time basis, and it may also be used for the provision of discontinuous permanent services.
One of the best known types of permanent contracts is the ordinary contract, although it is not the only one.
In addition to the ordinary open-ended contract, there are also other special open-ended contracts regulated by law for certain specific cases, such as, for example, the following:
Depending on the form in which the employee and employer decide to formalise the ordinary open-ended contract, a distinction can be drawn between following types:
As for the formal requirements of the open-ended contract, The regulation sets out a number of guidelines.
Thus, although they can be done both orally and in writing, there are a number of cases where they will have to be in writing or shall be deemed to have been concluded for an indefinite period and on a full-time basis.
For its part, the Ministry of Labour makes available to enterprises a official model indefinite contract.
The conversion of a temporary or training contract to an indefinite-term contract can be brought about by agreement between the employee and the undertaking.
However, the contract shall also be deemed to be indefinite in the following cases cases:
The main benefit of having an open-ended contract for the worker lies in the compensation you will receive in the event of redundancy, The other rights are equivalent in all modalities.
In this sense, in the case of temporary contracts, the company may choose to terminate the worker - applying the corresponding type of compensation - or wait until the end of the contractual period, without having to compensate the employee. On the other hand, in the case of an open-ended contract, since it is not subject to a time limit, on termination of the contractual relationship by the carrier is always understood as dismissal, with the appropriate severance payment, This provides greater job security for the professional.
In particular, the dismissed worker is entitled to a compensation of 20 days' salary per year worked for a maximum of 12 monthly payments, in the case of objective dismissal; and 33 days' salary per year worked for a maximum of 24 monthly payments, amounting to 45 days' salary per year with a limit of 42 monthly payments since 12 February 2012, in the case of unfair dismissal.. In the case of disciplinary dismissal or voluntary redundancy, the employee shall not be entitled to compensation.
And what benefits does the organisation derive from this type of contract?
At the economic level, companies opting for the open-ended contract are entitled to substantial State, regional and local tax credits. Thus, for example, the conversion of internship contracts at the end of their initial or extended duration, relief and substitution for retirement in companies with fewer than 50 employees entails a deduction of between 500 and 700 euros in the contribution during the first three years.
In addition, as regards the corporate culture, The permanent contract provides greater job stability to employees, who perceive the support and backing of the company, which boosts the motivation of human capital and improves the performance and productivity of teams.
