Rules for companies that hire people facing social exclusion

Automatic summary, not yet reviewed

1. The law defines insertion companies: commercial companies or cooperatives whose main purpose is the social and labor integration and training of people in situations of social exclusion, as a step toward ordinary employment.
2. It establishes who can be hired: unemployed people in social exclusion, such as recipients of minimum income benefits, young people from child protection centers, people recovering from addictions, inmates or former prisoners, and people from alternative housing centers. Public social services must certify the exclusion.
3. It sets requirements for these companies: they must be promoted and partly owned by nonprofit entities, keep at least 30% of workers in the insertion process during the first three years (50% from the fourth year on), reinvest 80% of surpluses, and submit an annual social balance.
4. It regulates the employment relationship: contracts follow the Workers' Statute, with special features such as paid leave for treatments or training, and a temporary employment promotion contract lasting between twelve months and three years, with compensation of twelve days of salary per year at the end.
5. It provides public aid: Social Security rebates of €850 per year per worker, subsidies to maintain insertion jobs, and aid for investment and for supporting workers.
6. It establishes the penalty system: breaches by insertion companies are administrative offenses in the social order, with serious and very serious offenses defined, such as falsifying documents or improperly receiving subsidies.

Who it affects

• Unemployed people in situations of social exclusion: They can be hired by insertion companies and follow a labor insertion plan.
• Insertion companies: They must meet certification, staffing and reinvestment requirements, and can receive aid.
• Nonprofit entities: They can promote and hold stakes in insertion companies.
• Autonomous Communities (Comunidades Autónomas): They certify, register and oversee insertion companies in their territory.

Words worth knowing

Empresa de inserción (insertion company)

A company whose main purpose is training and employing people facing social exclusion so they can later find regular jobs.

Itinerario de inserción (insertion plan)

A personalized plan with training and support to help the person get a regular job.

Calificación (certification)

Official recognition from the Autonomous Community that allows a company to operate as an insertion company.

Balance social (social balance)

An annual report covering the company's social activity, workforce and insertion results.

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