There are currently different types of temporary contracts in Spain, which play a key role for both companies and workers. These types of contracts allow employers to adjust their workforce to specific needs, and for workers, temporary contracts can represent a gateway to the labor market, providing the opportunity to gain experience and access to new professional opportunities.
Given the importance of this modality in the productive fabric of the country, it is essential to know the rights and characteristics of each type of temporary contract in order to make informed decisions and avoid abuse.
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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 duration and whose termination is established in advance according to the cause that justifies it. In Spain, the use of this type of contract is regulated by the Workers’ Statute, which establishes specific limits and requirements to avoid its abusive use and guarantee job stability.
The main purpose of a temporary contract is to respond to a non-permanent labor need within the company. However, to ensure that these contracts are not used fraudulently, the law states that they must have a justified cause and cannot be used to cover structural positions indefinitely.
These contracts can be formalized as both full-time and part-time, and their maximum duration varies according to the specific modality and the applicable collective agreement.
Types of temporary contracts in Spain
Under current labor legislation, there are three main types of temporary contracts in Spain, each designed to respond to specific business needs.
It is important to note that these contracts must comply with specific legal requirements and cannot be abusively chained together, as this would generate a situation of labor fraud that could lead to the automatic conversion of the contract into an indefinite one.
Temporary contract due to production circumstances
The temporary contract due to production circumstances is the most common in Spain and is used when a company experiences an occasional and unpredictable increase in workload or when there is a foreseeable need but of a reduced duration.
This type of contract is designed to cover situations in which the business activity experiences peaks in demand that do not justify the indefinite hiring of additional staff.
Situations in which it is used
- When the company faces a sudden increase in demand and temporarily needs more workers.
- During specific sales campaigns, such as sales, Christmas or Black Friday.
- For unforeseen events that require a larger workforce, such as responding to a large last-minute order.
Maximum duration
Up to 6 months in a 12-month period, unless the collective agreement allows it to be extended to a maximum of 1 year.
Key considerations
- It cannot be used to cover permanent needs within the company.
- If it is used improperly, the worker can request that their contract be converted into a permanent one.
Substitution contract (formerly known as a temporary contract)
The substitution contract allows a company to temporarily hire a worker to replace another employee who is entitled to the reservation of their job.
This contract is essential to guarantee the operational continuity of a company without the need to modify its labor structure in the long term.
Situations in which it is used
- To cover an employee on sick leave, maternity leave, paternity leave or on leave of absence.
- While a selection process is being finalized to fill a position permanently.
- Maximum duration
- The contract lasts as long as the replaced worker remains absent.
- If the reason is a selection process, the contract can be extended up to three months.
Key considerations
- It must be clearly specified which worker is being replaced and the reason for their absence.
- If the replaced worker does not return, the company must decide whether to convert the contract into an indefinite contract or terminate the employment relationship.
Contract for a specific project or service (eliminated with the 2022 labor reform)
Until 2022, there was the contract for a specific project or service, which was used for jobs with an uncertain duration but linked to a specific project within the company.
However, this modality was eliminated with the Labor Reform of 2022, due to the fact that in many cases it was used fraudulently to chain temporary contracts without offering job stability to the workers.
Current alternatives
- If the company needs to cover intermittent activities, it should use the fixed-term contract.
- If the labor need is structural, it is recommended to use a permanent contract, since the new regulations limit excessive temporary employment.
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Differences between temporary contracts and fixed-term contracts
One of the main confusions in labor contracting in Spain is the difference between temporary contracts and fixed-term contracts. Both are designed to cover non-permanent labor needs, but they present key differences in terms of duration, stability and labor rights.
While the temporary contract is used to cover specific and exceptional needs with a specific end date, the fixed-term contract is designed for seasonal or recurring activities, allowing the worker to return to work in each period of activity without the need to sign a new contract.
Know the differences between the two types of contract and make informed decisions.
Characteristics of the temporary contract
The temporary contract in Spain is a type of contract that has a fixed term and can only be applied when there is a justified reason that supports its temporary nature.
This type of contract is used when a company experiences a temporary increase in activity, when it needs to fill a vacancy temporarily or when it has to deal with an extraordinary situation that cannot be managed with the usual workforce.
Temporary contracts can be full-time or part-time, and at the end of the contract, the worker is entitled to receive compensation equivalent to 12 days’ salary for each year worked.
Characteristics of the permanent seasonal contract
The fixed-term contract with no predetermined end date, on the other hand, is used for activities that are repeated on a cyclical or seasonal basis. The worker maintains their link with the company and is called upon to return to work each time there is a period of activity.
This type of contract is common in sectors such as tourism, hospitality, agriculture or non-formal education, where the demand for labor fluctuates according to the season. Unlike the temporary contract, the discontinuous fixed contract allows the worker to retain their seniority in the company and receive the same benefits as a permanent employee, with the only difference being that their activity is not continuous throughout the year.
Key differences between temporary and fixed-term contracts
The fundamental difference between these two contracts lies in their duration and the job security they offer.
- The temporary contract has a specific end date and can only be used in specific situations. At the end of the contract, the employment relationship between the worker and the company is terminated, and the worker receives compensation proportional to the days worked.
- The permanent seasonal contract, on the other hand, does not end when the activity ends. The worker continues to be part of the company and is called back when a new period of activity begins. Although they do not work during periods of inactivity, they remain linked to the company and retain their seniority.
In sectors where the demand for work is seasonal or recurrent, the permanent seasonal contract is the most appropriate option to guarantee job stability for workers.
Rights of workers with temporary contracts
Despite their fixed term, workers with temporary contracts in Spain have the same labor 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 guarantees that a temporary contract must comply with the same labor standards as a permanent contract in terms of salary, social protection and working conditions. However, temporary workers may face greater challenges in terms of job stability and access to long-term benefits.
Fundamental rights of temporary workers
Workers with temporary contracts are entitled to receive the same salary and enjoy the same working conditions as permanent employees who perform similar functions in the company.
In addition, they are entitled to contribute to Social Security and to receive unemployment benefits if they meet the established requirements. They can also access work licenses and permits, such as sick leave, maternity or paternity leave, and they should receive the same opportunities for training and internal promotion as the rest of the workforce.
One key difference is the severance pay they receive at the end of the contract. In temporary contracts, the worker is entitled to compensation of 12 days’ salary for each year worked.
When is a temporary contract fraudulent?
A temporary contract is fraudulent when it is used to cover a permanent need of the company instead of a specific need. It is also illegal to chain temporary contracts with the same worker without justification, or to use this type of contract without clearly specifying the cause that justifies the temporary nature.
If a worker finds themselves in a situation of irregular temporary employment, they can file a complaint with the Labor Inspectorate or go to court to request the conversion of their contract into a permanent one.
Comply with current regulations and take a job with a temporary contract in Spain
For workers, knowing the difference between these contracts is essential to protect their rights and avoid situations of abuse. If a temporary contract is used fraudulently or does not comply with legal requirements, the worker can claim its conversion into a permanent contract.
Do you still have questions about the types of temporary contracts in Spain or do you need legal advice? Don’t hesitate to write to us and get a consultation with an expert in labor law to make sure you make the best decision for your company or your professional career.
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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.
