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 State Public Employment Service (SEPE), the permanent contract “is that which is agreed without setting time limits on the provision of services as regards the duration of the contract”.
That is to say, unlike other types of contract, such as temporary, training, or internship contracts, permanent employment contracts do not have a specific end date, but rather The employment relationship between a company and an employee lasts until one of them terminates it..
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.
The indefinite contract is the one formalised between employee and employer, linking the former to an employment relationship with the company where no maximum time limits are specified for the provision of services., regarding the duration of the contract. It can be concluded for full-time, part-time, and also applies to fixed-term discontinuous services.
One of the best-known types of permanent contracts is the ordinary one, although it is not the only one.
Alongside the ordinary permanent contract, there are also other special permanent contracts. regulated by law for certain specific cases, such as, for example, the following:
Depending on the way 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, while they can be carried out both orally and in writing, there are a series of circumstances in which 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 open-ended 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 always understood as dismissal, with its timely compensation, 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.. If it is a disciplinary dismissal or a voluntary termination by the employee, they will not be entitled to compensation in any case.
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 significant 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 offers greater job stability to employees, who perceive the company's support and backing, which drives human capital motivation and improves team performance and productivity.
