Employment contracts in Spain: how to choose the most appropriate one?

The following types of employment contracts exist in Spain:

• Indefinite contract: It sets forth no specific time-limit and can be signed for full time, part-time or for the provision of intermittent services.
• Temporary contract: It sets forth a specific time limit for the duration of the employment. It can be signed for a full-time or part-time contract.
• Training and learning contract: With this contract the employee obtains a professional practice appropriate to the level of his or her completed studies.
• Internship agreement: This type of contract is to promote the employability of young professionals while alternating between academic activities.

Each of these contracts has its own particularities and specific clauses in line with the characteristics of the employee and/or the employer, as well as its allowances. Companies hiring employees need to be familiar with these circumstances and the available benefits, as these can also reduce their monthly costs.

The bonuses of the employment contracts depend on:

The characteristics of the company

There are different characteristics of a company depending on its legal form or how many employees it hires. It is not the same if it is a regular company, a micro-enterprise with less than ten employees, an SME with tens of employees or a big company with hundreds of employees.

The working life of the company

The working life of the company is also relevant: for example, if the company had to deal with some regulation, what is the company’s level of employment or is the company creating new positions.

The situation of the future employee

There are also certain aspects that need to be considered when signing an employment contract including whether the contracting party is a young professional, has no work-experience, has not trained for the job, belongs to a specific social group or is registered as a job seeker.

Incentives for social security

It is necessary to verify if an incentive can be applied (i.e. reductions and bonuses) to the contributions to social security.

The examples of contracts with bonuses are: those of entrepreneurs, youth guarantee, family home service, senior management, people at risk of social exclusion, working in a group, disabled, special employment centres, temporary care, relief, etc.

These factors as well as contract clauses may limit the type of contract one choses at the time of concluding an employment contract in Spain, since there may be cases when the conditions will be much more advantageous than in others.

For further information regarding employment contracts in Spain,