With the recently approved Labour Reform, the Spanish government has imposed even more severe restrictions on temporary employment contracts.
In this newsletter, we briefly explain the limited options that from now on are available for these kinds of contract.
Temporary contracts just in exceptional cases
The starting point of the Spanish Government is that employees should have a permanent contract as standard and that it is only possible to offer them a temporary contract in a few exceptional situations.
In the case of foreseeable situations (e.g. trade fairs, congresses), it remains possible to hire temporary staff, however, with a limit of just 90 days per year, calculated over the entire workforce (!).
In situations that cannot be foreseen (e.g. temporary projects, replacement due to holidays of other employees), temporary staff can be hired with a limit of 6 months (in the future this period may be extended for certain collective bargaining agreements).
However, in both situations it is very important that the contract specifies in detail the exact reason and how this reason is related to the duration of the contract.
Temporary contracts without valid cause can lead to significant penalties (up to 10,000 euros per employee).
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