Training Contracts: The Internship Contract

The internship contract is a training contract provided for by Spanish legislation to facilitate access to the professional world to those who are under the age of 30, own a university degree or intermediate or higher vocational training qualifications, or titles officially acknowledged as equivalent, or a certificate of professionalism as contemplated by law. The objective of the internship contract is for the worker to obtain professional experience proper to the worker’s level of studies and to put into practice the worker’s theoretical knowledge.

The duration of the internship contract must be between 6 months and 2 years.

The compensation to the worker employed under this type of contract should comply with the following minimums:

1. First year: to be equal to or higher than 60% per cent of the salary determined by the Collective agreement for a worker assuming the same or an equivalent job in the company
2. Second year: to be equal to or higher than 75% per cent of the salary determined by the Collective agreement for a worker assuming the same or an equivalent job in the company

The advantages of the internship contract

There are several advantages to an employer when realizing an internship contract

• Flexibility in hiring
• Possible cost savings both in terms of monthly salary and in terms of indemnity payments, since article 49.1.c) of the Workers’ Statute excludes the right of an intern from receiving compensation when his or her contract expires due to the expiration of the time initially agreed upon
• A reduced contribution to Social Security for the workers under internship contracts
• Moreover, if after the conclusion of the internship contract the employer decides to keep the worker in the company using an indefinite contract (transformation into indefinite), the employer will be entitled to a bonus in the employer contributions to Social Security.

It is essential to study each specific situation before the conclusion of an internship contract in Spain. This will avoid breaches common breaches often pursued by the Spanish labour authorities, such as the assumptions of false grant holders, in which a non-working relationship is established with the intern due to its improper form.

(1) Take into account the provisional extension of this term concerning what is contained in article 11.1 of the Workers’ Statute by Law 11/2013, from the 26th of July, on measures to support the entrepreneur and stimulate growth and the creation of employment, as a measure to reduce youth unemployment and, only, until the unemployment rate in our country is below 15 per cent.

For further information regarding the internship contract in Spain,