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Labor, 15/11/19

Measures to combat abuse and fraud in the use of temporary contracts.


In August, the Labor Inspectorate began sending communications to companies regarding the fraudulent use of temporary contracts, following an instruction.



The main objective is to prevent fraudulent and abusive practices in hiring practices in part-time modalities, temporary contracts due to production circumstances and contracts for work or service.

 

Some companies use part-time contracts to implement a work schedule longer than that stipulated in the employment contract. A clear example is when a worker is hired for a part-time schedule of 20 hours per week in the morning, but in reality, they will work 40 hours per week, both mornings and afternoons.

 

Other companies use temporary contracts without a justifiable reason for the temporary nature of the employment, simply to fill a job position within their normal operations. It's important to remember that the Workers' Statute is very clear in Article 15.3: these contracts are therefore considered fraudulent.

 

The chaining of temporary contracts is another common practice; a worker cannot be employed by the same company or group of companies, for the same or different position, with two or more temporary contracts, for more than 24 months in a 30-month period.

 

Furthermore, temporary contracts cannot exceed the maximum time limit. In this case, the law limits temporary employment in the form of temporary contracts due to production circumstances to 6 months in a 12-month period with a single extension. In most collective agreements, this period is extended to 12 months in an 18-month period.

 

Companies using temporary contracts that exceed the legal maximum duration will receive a notification requiring them to regularize the employee's situation by converting the temporary contract into a permanent one. This notification also states that failure to convert the contracts will result in an inspection by the corresponding Provincial Labor and Social Security Inspectorate.

 

In short, it is worthwhile to assess and limit the use of temporary contracts and use them only when there is a real reason that justifies the temporary nature of the contract, and also to adjust the contract to the actual working hours for which services will be provided, in order to reduce the risks in the event of a labor inspection that could impose sanctions for non-compliance with the regulations on temporary contracts, this being a serious offense.

 

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