SPAIN’S LABOR REFORM 2022: What is a discontinuous fixed contract?

31.01.2022, Axxon

 

After a period of rumors and uncertainties, the main unions, government, and most representative business employers agreed on the Spanish labor reform. It was published in the BOE on December 28, 2021. This reform changes some details of the current paradigm and, despite not yet being definitive, we highlight the relevant aspects that affect temporary hiring and, specifically, temporary employment agencies, such as Axxon.

 

 

About the discontinuous fixed contract and its use by temporary employment agencies, the labor reform modifies the wording of article 16 of the Workers' Statute, specifying, among others:

 

“Likewise, a fixed-discontinuous contract can be signed between a temporary employment company and a person hired to be assigned, in the terms provided in article 10.3 of Law 14/1994, of June 1, which regulates temporary work companies”

 

Thus, we see how the Labor Reform gives prominence to the discontinuous fixed contract to reduce the high rates of temporary contracts. It is evident, then, that temporary work agency is relevant in the commitment and will of the Spanish State to carry out this proposal.

 

 

What is the discontinuous fixed contract?

 

The discontinuous fixed contract is made in temporary job positions within each calendar year, which do not occur on certain dates and within the usual volume of activity of the company. In other words, the workers become part of the company's permanent workforce, but they work at a certain time of the year. In addition, once the work action is finished, the contract is not terminated. The professional relationship continues as workers under this process can be called again for the next work process.

 

 

How does it affect temporary employment agencies?

 

With the Labour Reform presented, Law 14/1994 is also modified, specifically section 3 of its article 10 (which is the Law that regulates temporary work companies), specifying:

 

"The temporary work company can also sign an employment contract with the worker to cover several successive availability contracts with different user companies... and respond in all cases to a contract assumption contemplated in the Article 15.2 of the Workers' Statute...

Likewise, temporary employment agencies may sign fixed-discontinuous contracts to cover contracts for and availability linked to the temporary needs of various user companies, under the terms provided in article 15 of the Workers' Statute... "

 

We must not forget that the reform still contemplates the use of fixed-term contracts to deal with temporary situations. These can be both occasional increases in production, unforeseeable conditions, or the same vacations, as well as cases in which the company addresses occasional foreseeable situations.

 

 

When does it apply?

 

As mentioned above, the Amendment may be subject to change. However, if the application of some of the contractual modifications introduced in the labor reform published in RDL 32/2021 of 12/28/2021 continues, we find ourselves in a period of vacatio legis (transition period before applying some aspects of the law) until March 30, 2022.

 

 

From Axxon...

 

From Axxon we interpret the labor reform as a firm will, on the part of the legislator, so that Temporary Work companies make use of the discontinuous fixed contract. We have the objective of hiring and making available the workers to client companies (users) in jobs that respond to temporary causes included in article 15 of the Workers' Statute.

 

We are at the gates of a new scenario where both final companies and Temporary Employment companies will have to adapt to the new labor framework to continue managing temporary employment in a professional manner and with the highest quality and added value to all people and companies.

 

At Axxon we have been professionals in temporary management since 1994 and we see a moment like the present as an opportunity to continue adding value to people and companies in their work environment.

 

We have prepared a video(in Catalan) with all the details to help you delve into the subject.Do you have more questions? Contact us, we want to help you!