Updated: 31/10/22
One of the main objectives of the labour reform promoted by the government in December 2021 is to limit the use of temporary contracts and to promote permanent contracts.
To this end, a new model of contract has been introduced; the fixed-term contract. It is important to know what a fixed-term contract 2023 is and what advantages it has for companies and workers.
What is a fixed-term contract?
The indefinite fixed-term contract is a a form of employment contract under which the worker has the right and obligation to provide services for the duration of the activity for which he/she has been recruited. Upon completion of this activity, the recruitment shall be discontinued.
This type of employment contract is widely used for specific tasks that occur during a specific season, such as in agriculture.
Characteristics of the fixed-term contract
The fixed-term contract has a number of characteristics. These are as follows:
- It must be in writing.
- It should state the estimated duration of the activity for which the worker is to be hired.
- The worker's working hours must be fixed.
- The contract shall set out the terms and conditions of the call.
- The conditions laid down in the applicable Collective Bargaining Agreement shall apply to these contracts.
Discontinuous fixed-term contracts: advantages and disadvantages
This type of contract has a number of benefits for companies and employees. They are as follows:
- Allowances and reductions for the hiring of permanent workers for the company. Thus, the company will receive a 50% rebate on the employer's contribution for the hiring of permanent workers.
- Flexibility to adapt the volume of workers to the activity cycles at any given time.
- Avoid possible lawsuits against the company for hiring in violation of the law.
- Greater job stability for workers.
- In case of dismissal, entitlement to higher severance pay for workers.
However, this type of employment contract also has some limitations. disadvantages. They are as follows:
- The worker will only receive a salary for those months in which he/she works. In other words, when the work activity is interrupted, the contract is also interrupted and the worker will no longer receive a salary.
- The worker will be entitled to unemployment benefit, but only if he/she has paid sufficient contributions.
Differences between a fixed-term contract and a temporary or casual contract
There is some confusion between the fixed-term contract and the temporary contract. Although both types of contract are used in similar situations, they both have important differences.
On the one hand, the fixed-term contract is a type of open-ended contractThe use of the new technologies is a key factor in the development of the new technologies, even though it is intended for work activities on a cyclical basis. In this way, the undertaking shall ensure that the permanent seasonal worker is recalled for the next cycle of activity.. In fact, in the event that this call does not take place, it will be considered an unfair dismissal for which the worker will be entitled to receive the corresponding compensation.
On the other hand, the temporary contract is a non-cyclical temporary contract, whereby the worker will perform a specific activity and the company is not obliged to call you back for future business cycles.. Therefore, it is not as stable as the fixed-term contract.
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