quinta, 03 março 2022

The new temporary contract due to production overload, and transit regime in Spain

VolverThe labour reform removes the previous works and services contracts, i.e., a self-contained project in its own right, and temporary contracts due to production overload, i.e., accumulation of work or excess of orders.

1. Requirements.

This new temporary contract, in order to be executed, requires a good cause for its casualisation. Moreover, it is necessary to accurately specify the cause enabling the temporary employment, the specific circumstances that justify it and its link to the expected duration. We should remember that the previous regulation also required an actual case for casualisation as a requirement to sign those contracts (works and services and temporary).

2. Occasional and unforeseeable increase

Production overload means the occasional and unforeseeable increase in business and the fluctuations, even for normal business operations, resulting in a temporary mismatch in the available stable employment. Among these fluctuations, those arising from the annual leave should be included.

At Belzuz abogados, experts in labour law, we are aware of both the importance of this change and the fact that annual leave are the direct cause of temporary hiring.

Regarding duration, as a rule, it cannot be more than six months. Under sectoral collective bargaining agreement, the maximum duration may be increased up to one year. If a contract has been entered into for a shorter period, extensions up to the maximum legal or conventional duration are allowed.

3. Casual and foreseeable situations

The legislature also allows that companies execute these contracts by a second part of assumptions, i.e., in order to 1) answer casual, 2) foreseeable situations and which 3) have a limited and defined duration under the terms provided in this paragraph.

This new method also has special rules about duration, specifically a maximum of ninety days of a natural year, that may not be continuously used. The legislature points out that such a duration shall be the maximum period of time regardless of the workers necessary to address the specific situations in each of those days. And as an important fact, the specific situations must be dully identified on the contract.

At the Belzuz Abogados Labour Law department, we are aware of the impact, and the conundrum, arising from this new item.

4. Entry into force and transit regime.

Firstly, we must remember that this new type of contract may not be executed until 31 March 2021, and the casual works and services contracts entered into before publishing the Act on the Spanish official gazette (BOE) shall be governed until their maximum duration by the provisions therein (D.T. 3ª).

Nevertheless, the legislature has developed an adjustment for new contracts within the temporary framework which is covered by the Act publication (31/12/2021) until its entry into force. Those contracts will be governed by the regulations or conventions applicable at the time of execution and their duration may not be longer than six months.

At Labour Law department of Belzuz Abogados, as labour lawyers with extensive experience in providing advice on procurement and with an extensive track record on industries with high seasonality and used to complaints and checks in order to convert temporary contracts to indefinite contracts, we deem essential that the companies have a clear picture of the new law so they can optimally apply it. In some instances, the new laws may involve a substantive change in many active policies.

Francisco Javier Rodriguez  Francisco Javier Rodriguez

Departamento Direito Laboral | Madrid (Espanha)

 

Belzuz Abogados SLP

A presente Nota Informativa destina-se a ser distribuída entre Clientes e Colegas e a informaçăo nela contida é prestada de forma geral e abstracta, năo devendo servir de base para qualquer tomada de decisăo sem assistęncia profissional qualificada e dirigida ao caso concreto. O conteúdo desta Nota Informativa năo pode ser utilizada, ainda que parcialmente, para outros fins, nem difundida a terceiros sem a autorizaçăo prévia desta Sociedade. O objectivo desta advertęncia é evitar a incorrecta ou desleal utilizaçăo deste documento e da informaçăo, questőes e conclusőes nele contidas.

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