Irregular use of temporary contracts: 83,600 companies will receive letters from the labour and social security inspectorate.

Irregularities in temporary contracts

Companies suspected of irregular use of permanent-discontinuous contracts and temporary contracts will receive letters from the labour and social security inspectorate.

Joaquín Pérez Rey, secretary for employment, announced that the inspectorate would begin to send letters to ensure correct compliance with the working conditions of workers in companies in sectors linked to seasonality.

It is estimated, according to sources consulted, to affect 199,800 employees in 83,600 companies.

After the new labour reform came into force, it was established that the ordinary employment contract is indefinite and temporary contracts can only be made for justified reasons, such as replacement of another employee or for production reasons.

In the first case, the temporary contract for substitution can be carried out to replace a suspension of the contract with the reservation of the job, as well as to cover reduced working hours due to legal or conventional reasons and to cover vacancies during a selection process. The maximum duration is three months.

The second case can only be carried out for specific and unforeseen increases in production or demand, with a maximum of six months, extendable to twelve months if the collective agreement so provides.

This reason may be used in foreseeable situations, such as Christmas or agricultural campaigns, for a maximum period of 90 non-consecutive days per year. Even if the cause is foreseeable, if the duration is short and limited, it is possible to carry it out.

In this way, the contract for work or service, which allowed temporary contracts of up to four years in some cases, is removed from the labour legislation.

Penalties of up to 10,000 euros for irregularities in temporary contracts

The work contract therefore becomes indefinite and at the end of the work on the site the worker must be relocated or the company must train him/her.

Since 30 March, the seasonal sectors started to use fixed-discontinuous contracts that have the same rights as the rest of the indefinite contracts.

The rule reduces the time needed for a worker to be considered indefinite to 18 months over a period of 24 months, as opposed to the 24 months over a period of 30 months that was previously in force.

Failure to comply with these rules will lead to the worker being considered indefinite. Following the reform, penalties for irregularities in temporary hiring have been raised from a maximum of 8,000 euros to 10,000 euros and will be applied per fraudulent situation and not per company, as was previously the case.

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