Measures aimed at the Promotion of Indefinite Employment

RDL 8/2019 also includes a series of measures aimed at Promotion of Indefinite Employment. Focused on specific economic and population sectors.

Our Labour Consulting Dept. has summarized them below.

Agricultural Sector

Companies that employ workers included in the Special System for Agricultural Employees established in the General Social Security System, that transform, before January 1, 2020, the temporary employment contracts signed with these workers, whatever the date of their conclusion, into contracts of indefinite duration, including permanent-discontinuous contracts, shall be entitled to the following reductions in the company quota for common Social Security contingencies, during the two years following the transformation of the contract:

If the contract refers to workers included in contribution group 1. Contributions based on monthly bases, with a monthly contribution base of less than 1,800€. The bonus will be 40€/month (480€/year). In the case of female workers, these bonuses will be 53.33€/month (640€/year).
When the contract refers to workers included in contribution group 1 as well. But if they contribute for real days worked and their daily contribution base is less than 81€, the bonus will be 2€/day. In the case of workers, the bonuses will be €2.66/day.
If the contract refers to workers in any of the contribution groups between 2 and 11, who have a monthly contribution base of less than €1,800 or a daily base of less than €81.82. The bonus will correspond to the amount necessary so that the resulting quota for common contingencies does not exceed 88.15€/month, or 4.01€ per real day worked. In the case of female workers, the bonus will correspond to the amount necessary so that the resulting quota for common contingencies does not exceed 58.77€/month, or 2.68€ per real day worked.

The bonuses will not be applied during TI situations, risk during pregnancy and risk during breastfeeding. As well as birth and child care that occur during periods of activity.

Requirements:

The company must keep this worker in employment for at least 3 years from the transformation. If this is not done, the incentive must be reimbursed.
The provisions contained in Section I of Chapter I of Law 43/2006 shall apply. Except as established in article 2.7.

Bonuses in the hiring of long-term unemployed persons

A bonus is introduced in the employer’s quota for contingencies common to the Social Security, to the hiring of long-term unemployed people. They must be registered at the employment office for at least 12 months in the 18 months prior to hiring. For the application of this bonus, it is established that the contracted worker must remain in employment for at least three years from the date of commencement of the employment relationship.

Employers who indefinitely hire unemployed persons and who are registered with the employment office for at least twelve months in the eighteen months prior to hiring shall be entitled, from the date of signing the contract, to a monthly bonus on the employer’s Social Security contribution or, where applicable, for its daily equivalent, per worker hired of 108.33 euros/month (1,300 euros/year) for three years.
When these contracts are concluded with women, the bonuses indicated will be 125€/month. In other words, 1,500€/year for three years.

If the contract is made part-time, the bonus will be reduced proportionally.

Requirements

The company must maintain the employment of the hired person for at least 3 years from the beginning of the relationship. And maintain at the level of employment achieved with this contract for at least 2 years. Otherwise you must refund the incentive received. The obligations of maintenance of employment are not considered to be breached when:
- the contract is terminated for objective reasons or by disciplinary dismissal.
- when one or the other is declared or recognised as appropriate
- extinctions due to resignation, death, retirement or total, absolute or severe permanent disability,
- expiration of the agreed time
- performance of the work or service covered by the contract
- failure to pass a trial period.
The provisions contained in Section I of Chapter I of Law 43/2006 shall apply. Except as established in Article 2.7.

Support measures for the extension of the activity period of workers with discontinuous permanent contracts.

Specifically, it refers to the commerce and hospitality sectors linked to tourist activity.

A support measure has been introduced to extend the period of activity of workers with permanent discontinued contracts.

In particular, it refers to the commerce and hospitality sectors linked to tourist activity.

A support measure is established to extend the period of activity of workers with permanent discontinuous contracts in the tourism and commerce and hospitality sectors linked to tourist activity, maintaining the incentives for the months of February, March and November, extending it for one more year from 1 January 2019 to 31 December 2019, consisting of a bonus in those months of 50 per cent of company Social Security contributions for common contingencies, as well as for the concepts of joint collection of Unemployment, FOGASA and Vocational Training of said workers.

Proposal for the drafting of a new Workers’ Statute

Before 30 June 2019, the Government will set up a group of experts who will be responsible for proposing a new Workers’ Statute that adapts its content to the structural problems of the labour market, such as the high rate of unemployment and high seasonality, the need to re-establish a balance in labour relations between companies and workers and the transformations that are taking place in the workplace as a result of digitalisation, globalisation, demographic changes and the ecological transition.

Youth Guarantee System

This RDL aims to stabilise the application of the employment improvement programmes developed within the framework of the Youth Guarantee to all young people under the age of 30, complying with the Youth Employment Shock Plan, for which measures are introduced aimed at improving management, collaboration, coordination and communication within the National Employment System and promoting its modernisation.

Immigrant Integration Fund

It is envisaged that the Government and the Devolved Regions will agree at the Sectoral Conference on Immigration on biennial action programmes to strengthen the social integration of immigrants. Such programmes should be financed from a state fund for the integration of immigrants. That will be provided annually, and that may include formulas of co-financing by the receiving administrations of the items of the fund.