- The contract becomes indefinite if the requirements are not met.
- The company must inform staff on fixed-term or temporary contracts, including training contracts, about the existence of vacant posts.
- Compensation of 12 days’ salary per year of service at the end of the contract, including for training contracts.
This regulation on temporary contracts enters into force from 31 March 2022, establishing a transitional regime applicable to fixed-term contracts from 31 December 2021 to 30 March 2022. “Contracts for specific work and service and temporary contracts due to market circumstances, accumulation of tasks or excess of orders, held from 31 December 2021 to 30 March 2022, will be governed by the legal or conventional regulations in force on the date on which they have been agreed and their duration may not exceed six months.”
Temporary Employment Regulation Files
Regarding the Temporary Employment Regulation Files (ERTE), the Royal Decree includes the establishment of a seven-day limit on the consultation period for companies with less than 50 employees. In addition, a new type of ERTE is available – ‘temporary force majeure’, due to impediments or limitations on normalised activity.
Flexibility and employment stabilisation measures
The Decree also includes the incorporation of the RED Mechanisms for Flexibility and Stabilisation of Employment. This will allow companies to request measures to reduce working hours and suspend employment contracts, under two specific circumstances:
- Cyclical: in the face of a general macroeconomic situation that advises the adoption of additional stabilization instruments (maximum duration of one year).
- Sectoral: when a certain sector or sectors of activity undergo permanent changes that generate the need for employees to requalify or undergo professional transition processes (initial maximum duration of one year with the possibility of two extensions of six months each).
Royal Decree-Law 32/2021 entered into force on 31 December 2021, except for temporary and training contracts, which be in force from 31 March 2022.
There are more measures contained in Royal Decree-Law 32/2021, but these are the main points. For more information on these Labour Code changes and to discuss the impact on your Spanish operations, Auxadi’s payroll team is at your disposal.