Types of work contracts in Spain

See sample temporary work contract (Contrato temporal, obra y servicio)

See sample permanent work contract (Contrato indefinido)

Article adapted from the Ministry of Economy

Indefinite contracts

An indefinite contract is one that is entered into without establishing time limits for the provision of services regarding the duration of the contract.

An indefinite employment contract may be agreed upon for full-time, part-time, or fixed-term intermittent services. Indefinite contracts may in some cases be eligible for hiring incentives, provided that the requirements stipulated by the applicable regulations are met, depending on the characteristics of the company, the worker, and, if applicable, the working hours.

If the contract is not formalized in writing when required, it will be presumed to be an indefinite and full-time contract, unless evidence to the contrary demonstrates its temporary nature or part-time status, as established in Article 8.2 of the Workers' Statute.

Indefinite contracts with incentives may be used when hiring:

• Workers over 45 who have been unemployed for at least one year.
• Women unemployed for more than a year who have been hired for work in sectors where women have been traditionally under-represented.
• Workers between 30 and 44 who have been unemployed for more than a year.
• Unemployed workers under 30 years of age. Workers with disabilities.

The main feature of an indefinite contract after the latest changes to the labour law is that severance pay for improper dismissal is now 33 days of salary for each year worked with a maximum of 24 months of salary.

Temporary contracts

A temporary contract is a type of employment agreement in which a company and a worker establish a working relationship for a specific period. This contract can have a maximum duration of 6 months, extendable up to 12 months by collective agreement.

To demonstrate a justified reason for temporariness, it is necessary to clearly specify in the contract the reason enabling the temporary hiring, the specific circumstances justifying it, and its relationship to the anticipated duration.

A fixed-term employment contract can only be used for circumstances such as production needs, replacement of a worker, or temporary coverage of a position during a selection or promotion process.

The unjustified use of temporary contracts or failure to meet obligations can convert the temporary relationship into a permanent employment relationship.