analysis of its advantages and challenges
The fixed-term contract is ideal for seasonal activities, as it combines stability and flexibility. Knowing its characteristics and regulations is key to understanding its value in today’s work environment.
What is a fixed-term contract?
A fixed-term contract is a type of employment contract designed for activities that do not require continuous work throughout the year, but which are repeated cyclically or intermittently.
Unlike a fixed-term contract or a temporary contract , a fixed-term contract guarantees the worker reinstatement in each cycle of activity, respecting the terms established in the applicable collective agreement. This contract is common in sectors such as agriculture, tourism, hospitality and education, where labour demands fluctuate according to the season or time of year.
Characteristics of the fixed discontinuous contract
The fixed-term contract is characterized by having an indefinite duration, although the worker only provides his services during the periods of activity that correspond to the ordinary type of activity of the company. These periods of activity are not continuous, but are subject to the productive needs of the company, which can call on the worker when necessary.
Unlike temporary contracts, in which the employment relationship ends with the end of the contract, a fixed-term contract ensures the worker’s reinstatement in subsequent periods of activity. Another important difference is the distribution of hours, which in the case of a fixed-term contract is adapted to the specific needs of the company during active periods.
This flexibility is one of the characteristics of the fixed-term contract that distinguishes it from other types of contract. In addition, the worker maintains his seniority, rights and employment benefits during periods of inactivity, which differentiates it from temporary contracts or a fixed-term contract.
Legal regulations and recent changes
Current legislation in Spain regulates the use of the fixed-term contract, specifying the conditions under which it can be used.
- According to article 16 of the Workers’ Statute (ET) , this type of contract is intended for work that is part of the company’s ordinary activity, but is not carried out continuously. In addition, the regulations require that notification of seasonal productive activities be made with adequate advance notice to allow the worker to plan his or her return.
- Recently, the 2021 labor reform introduced significant changes to the regulation of fixed-term contracts with the aim of reducing temporary employment and promoting permanent contracts.
- These changes include new obligations for employers regarding the sweden email list announcement and management of periods of inactivity, as well as more severe sanctions for failure to comply with these obligations.
The legislation has also strengthened workers’ rights during periods of inactivity, improving their access to subsidies and social benefits.
Rights and obligations of the worker
Workers with a fixed-term contract enjoy the same labour rights as those with an how to get your message to its destination open-ended contract, including the right to holidays, extra pay and social security contributions.
During periods of inactivity, the worker continues to accumulate sms to data seniority, which influences his rights to benefits and his minimum and maximum contribution base. In addition, the worker has the right to be called up for each period of activity with an incorporation and with adequate notice as established in the applicable collective agreement.
However, the worker also has obligations such as showing up for work when called upon and fulfilling assigned tasks during periods of activity. If a worker does not show up without justification during a period of activity, he could lose his right to be called upon in the future, which would affect his employment relationship with the company.
In addition, the worker must meet the requirements of availability and adaptation to the needs of the company during active periods.
Company obligations
Companies that use a fixed-term contract are obliged to formally and sufficiently notify workers for each period of activity. This notification for seasonal production activities must be made in accordance with the applicable collective agreement and respect the rights of the worker.
During periods of inactivity, the company must keep the worker on its payroll, taking into account their seniority and respecting their labor rights. In addition, companies must properly manage periods of inactivity, ensuring that workers are called back when work activity requires it.
Failure to comply with these obligations may result in penalties that may include fines and the obligation to compensate the employee for the lack of a call or inadequate management of the contract.
Advantages and disadvantages of a fixed-term contract
The fixed-term contract offers several benefits for both workers and employers.
For workers, this type of contract provides greater job security, as it guarantees reinstatement at each cycle of activity. In addition, the higher compensation and equal rights compared to other temporary contracts make this type of contract an attractive option. Workers can also benefit from incentives and reductions in their Social Security contributions during periods of inactivity.
For employers, the fixed-term contract offers discounts applicable to the hiring of permanent employees and allows for greater stability in the workforce. In addition, the flexibility in labour management offered by this contract helps companies to better adapt to seasonal fluctuations in demand.
However, there are also disadvantages and potential risks, such as difficulty in managing downtime and penalties for failure to comply with legal obligations.