New incentives and rules to promote stable employment

Automatic summary, not yet reviewed

1. It creates an Employment Promotion Program with rebates on the employer's Social Security contributions for companies that hire unemployed people on permanent contracts, with fixed monthly amounts that vary by group: women, people over 45, young people aged 16 to 30, long-term unemployed, people with disabilities, victims of gender violencegender violence Violence a woman suffers from a current or former partner because she is a woman., and people in social exclusion.
2. It sets up an extraordinary plan to convert temporary contracts into permanent ones: contracts signed before July 1, 2006 that become permanent before January 1, 2007 earn the employer a rebate of 66.67 euros per month for 3 years.
3. It rewards keeping older workers employed: workers aged 60 or older with 5 or more years at the company generate a 50% rebate on common-contingency contributions, rising 10% a year up to 100%, and women who return to work after maternity leave earn their employer 100 euros per month for 4 years.
4. It limits the chaining of temporary contracts: anyone employed for more than 24 months within a 30-month period in the same job through two or more temporary contracts becomes a permanent worker. It also repeals the insertion contract and adjusts the maximum age for training contracts.
5. It improves transparency in subcontracting: the main company must inform worker representatives about subcontracted work and keep a register when they share a workplace, and it precisely defines the illegal assignment of workers.
6. It strengthens unemployment protection for specific groups, such as people over 45 who exhaust their benefits and discontinuous permanent workers, and it lowers employer unemployment contributions for permanent contracts starting July 1, 2006.

Who it affects

• Companies and self-employed workers who hire unemployed people on permanent contracts: They can get part of their Social Security contributions rebated.
• Temporary workers hired before July 1, 2006: If their contract becomes permanent before January 1, 2007, the employer receives a rebate.
• People with disabilities: They have specific and larger rebates, both on permanent contracts and in special employment centers.
• Discontinuous permanent workers and unemployed people over 45: They get better access to unemployment benefits.
• Public administrations: They are excluded from the program's rebates, except when hiring people with disabilities in public special employment centers.

Words worth knowing

Bonificación (rebate)

A discount or refund of part of the Social Security contributions the company pays.

Cuota empresarial (employer contribution)

The money a company pays to Social Security for each worker.

Fijo discontinuo (discontinuous permanent worker)

A permanent worker whom the company only calls when there is work to do, for example in season.

Cesión ilegal de trabajadores (illegal assignment of workers)

When a company makes its workers available to another company without being an authorized temporary work agency, which is prohibited.

Fondo de Garantía Salarial (FOGASA)

A public body that pays wages and compensation owed to workers by insolvent companies.

gender violence

Violence a woman suffers from a current or former partner because she is a woman.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries