Reasons why the Labor Inspectorate converts temporary contracts into indefinite ones

The fines will be up to 6,000 euros

The Government has focused on temporary contracts. From the Ministry of Labor and Social Economy they intend to reduce fraudulent hiring and regularize all those workers who are victims of these illegitimate practices. This is one of the main objectives of the 2021-2023 Strategic Plan.

This fight against fraud results in many of these temporary contracts becoming, ex officio by the Labor Inspectorate, permanent. According to the Government, up to 90,000 contracts have already been regularized. These offending companies would also face fines of up to 6,000 euros.

Why does a temporary contract become indefinite?

Temporary contracts, unlike indefinite ones, require a specific, justified and determined cause to be concluded. The problem is that there are companies that use this hiring tool systematically in their business and not as a way to satisfy an eventual need for personnel, such as an increase in production, for example.

The Inspection will assess each of the contracts but the main reasons why these could be converted from temporary to indefinite are:

– Employ an interim to carry out a structural task

Some employers abuse this legal figure to maintain the advantages of hiring an intern. These contracts are reserved to replace casualties of other employees of the company, at the time of reinstatement of the holder, this contract must be terminated. Otherwise, you would be committing fraud.

– Exhaust the extensions of the temporary contract

The worker becomes permanent when, within a period of 30 months, the same person has been hired for more than 24 months in the same company and with two or more temporary contracts.

– Hire temporarily for a permanent or habitual need

A company cannot temporarily hire a worker for a permanent or habitual need. In such a case, the contract could become, ex officio, indefinite. In addition, the company must justify the temporary contract and clarify to the worker the position that is going to be covered.

– Exceed the maximum term of contracts for works or services

These types of contracts cannot last more than 3 years, although by collective agreement they can be extended up to 12 more months. In any case, if the contract has exceeded this time, the worker must become indefinite.

– Hire new workers while others are in ERTE

A company that uses these files cannot contract. If the business has part of its workforce in ERTE, it cannot formalize new temporary contracts. Instead, you should bail out those employees who are already part of the company. Otherwise, these new workers will become permanent.