In Spain, temporary contracts are a key tool in the labor market. They allow companies to adapt to changes in the demand for personnel and offer workers an opportunity for access to employment and professional development.
However, not all types of temporary contracts in Spain are the same. Depending on the situation, the Workers’ Statute regulates different modalities with their respective characteristics and limitations. Knowing them is essential to avoid abuse and guarantee a fair balance between business flexibility and labor rights.
If you want to know what types of temporary contracts exist in Spain, when they can be used and what their legal implications are, read on and get all your questions answered.
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What is a temporary contract and when is it used?
A temporary contract in Spain is one that has a specific end date and is justified by a specific cause. In other words, this type of contract can only be applied if there is an objective reason that explains its temporary nature.
Its use is regulated by Spanish labor legislation to prevent it from becoming an abusive practice. The regulations establish that it cannot be used indefinitely or to fill structural positions within the company.
Temporary contracts can be applied to both full-time and part-time work, and their duration depends on the type of contract and the applicable collective agreement.
Types of temporary contracts in Spain
Currently, Spanish legislation allows for three main types of temporary contracts. Each one has a specific purpose and must comply with certain legal requirements to ensure that its use is legitimate.
It is important to remember that if a company abuses temporary contracts or does not respect the legal limits, the contract can automatically become indefinite, giving the worker greater rights and job stability.
Let’s take a closer look at each type of Spanish temporary contract:
Temporary contract due to production circumstances
This is the most common type of temporary contract in Spain. It is used when a company needs to reinforce its workforce on an ad hoc basis due to an unexpected or foreseeable increase in activity.
Situations in which it is used:
- Sudden increase in demand that the usual workforce cannot cover.
- During commercial campaigns with high demand
- Unforeseen events that require more staff in a short period of time.
Maximum duration
Up to 6 months within a 12-month period.
It can be extended up to 12 months if the collective agreement allows it.
Key considerations
- It cannot be used to fill permanent positions within the company.
- If the company uses this contract irregularly, the worker can request that it be converted into a permanent contract.
Substitution contract (formerly known as a temporary contract)
This contract is used when a company needs to temporarily replace a worker who is entitled to job protection.
Situations in which it is used
- When an employee is on sick leave, maternity or paternity leave.
- To fill a vacancy while a selection process is being completed.
Maximum duration
It lasts for the time that the replaced worker is absent.
If it is used to cover a selection process, the contract cannot exceed 3 months.
Key considerations
- It must indicate which worker is being replaced and the reason for the absence.
- If the replaced worker does not return, the company must decide whether to convert the contract into a permanent one or terminate the employment relationship.
Contract for a specific project or service (eliminated with the 2022 labor reform)
Before the 2022 labor reform, there was the contract for a specific project or service, which was used for projects of uncertain duration within a company. However, this type of contract was eliminated due to its fraudulent use in many sectors.
Current alternatives to the contract for a specific project or service
- If the company has intermittent needs for workers, it should use a fixed-term contract.
- If the need is structural, it should opt for a permanent contract.
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Differences between temporary contracts and fixed-term contracts
A common source of confusion is the difference between temporary contracts and fixed-term contracts. Although both cover non-permanent labor needs, they are not the same.
A temporary contract has a fixed end date and is used for specific needs. In contrast, a permanent seasonal contract does not end when the activity ends, but rather the worker maintains their relationship with the company and is called upon during each period of activity.
Below, we explain the key differences.
Characteristics of a temporary contract
- Fixed term with a fixed end date.
- Used for specific labor needs.
- At the end of the contract, the worker receives compensation of 12 days’ pay per year worked.
Characteristics of the permanent seasonal contract
- Used for seasonal or recurring activities.
- The worker maintains their link with the company and is called when a new season begins.
- It is more stable than a temporary contract.
Rights of workers with temporary contracts
Workers with temporary contracts in Spain have the same rights as permanent employees in aspects such as salary, working hours and access to Social Security. However, there are some differences in terms of stability and continuity of employment.
The Workers’ Statute establishes that these contracts must guarantee the same working conditions as permanent contracts, but their limited duration may affect certain long-term benefits.
Fundamental rights of temporary workers
- They cannot receive a lower salary than a permanent worker in the same position.
- Social Security contributions and access to unemployment benefits.
- Access to work licenses and permits, such as sick leave, maternity and paternity leave.
When is a temporary contract fraudulent?
A temporary contract is fraudulent when:
- It is used to cover a permanent position within the company.
- Temporary contracts are chained together without justification.
- The reason for the temporary nature is not specified.
- If a worker finds themselves in this situation, they can request that it be converted into a permanent contract.
I complied with the regulations and accepted a temporary contract in Spain
The different types of temporary contracts in Spain are a useful tool for companies and workers, but they must be used properly and legally. For employers, understanding the regulations helps to avoid sanctions. For workers, knowing their rights guarantees better labor protection.
If you have doubts about which type of temporary contract is the most appropriate for your case or you want to make sure that your company complies with the regulations, consult us and access the best advice in labor law.
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Disclaimer: This article is for informational purposes only and may contain errors or be outdated. It does not constitute legal advice. For an updated initial consultation, contact us. One of our expert attorneys will assist you.
