Labor and social security regulations
Labor and social security regulations
- Types of contracts:
- Labor regulation
- Contribution rates
- Termination of employment contracts
- Equality in the workplace
Contracts can be made verbally or in writing, unless there are express provisions that require a written contract (for example, temporary contracts, part-time contracts and training contracts). If this formal requirement is not met, the contract is understood to be permanent and full-time, unless proven otherwise. Companies must provide the workers’ statutory representatives (if any) with a basic copy of all contracts to be made in writing (except for senior management contracts). The hiring of workers must be notified to the Public Employment Service within ten days of the contracts being made. There are various different types of contract, including indefinite-term, temporary, fixed-term, training, distance work and part-time contracts. In the website of the National Public Employment Service any can access a virtual assistant for employment contracts which, based on four basic types of employment contracts (indefinite-term, temporary, training and work-experience contracts), suggests and prepares the type of employment contract that best suits the characteristics of each new hire.
The labor relationship is governed by the employment contract, the collective labor agreement, the Workers’ Statute and other European and international regulations. Salary: May be established in the employment contract or in the collective labor agreement for the occupational group in question. May not be less than the minimum wage (€950 gross per month in 2020). Working hours: As established in the employment contract or in the collective labor agreement. May not exceed 40 hours per week, calculated on an annualized average basis. Vacation: 30 calendar days (collective labor agreement may improve it). Business succession: Employees’ labor relationships are not extinguished in the event of an inter vivos transfer or mortis causa transmission of a company. Foreign workers: A work permit is required (depending on the contract and the type of work), except for EU citizens, who are exempt from this requirement.
Maximum base: 4.184 euros Contribution rates under the general program: - Employee contribution: total of 6.35% for all contingencies (6.40% for fixed-term contracts) - Employer contribution: total of 29.90% for all contingencies except work-related accidents and illnesses (31.10% for fixed-term contracts)
An employment contract may be terminated for a number of reasons which normally do not give rise to any dispute, such as mutual agreement, expiration of the contractual term, death or retirement of the employee or of the employer, and so on. In the event of termination by the employer, there are three main grounds for dismissal of an employee: Collective layoff. Objective grounds Disciplinary action
Companies are obliged to respect equal treatment and opportunities in the workplace, for which they must adopt measures aimed at avoiding any type of labor discrimination between women and men. Companies with 50 or more workers need to implement and apply an equality plan, with the scope and content established by law, which must be negotiated with the legal representation of the workers. Since March 1, 2019, companies have the following deadlines to have this equality plan in place: Companies with more than 150 and up to 250 workers had a one-year period for the approval of equality plans. Companies with more than 100 and up to 150 workers have a period of two years for the approval of equality plans. Companies with 50 to 100 employees have a period of three years for the approval of equality plans. Equality plans must contain an ordered set of evaluable measures aimed at removing obstacles that impede or hinder the effective equality of women and men. Before establishing the plan, a negotiated diagnosis should be drawn up, where appropriate, with the legal representation of the workers, which will contain at least the following subjects: Selection and contracting process. Professional classification. Training. Professional promotion. Working conditions, including the salary audit between women and men. Co-responsible exercise of the rights of personal, family and work life. Under-representation of women. Remuneration. Prevention of sexual harassment and because of sex.
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