El Indefinite contract, Until recently, it was the "holy grail" of many workers. Having a job stability, knowing that you will not be fired (unless you do something very wrong) and not having to worry about anything was the dream of many.
Now, people want to change jobs every so often, so as not to burn out. Even so, there are many who still crave this type of contract, but what does it consist of? What are its benefits? Are there several types? We will tell you all this and much more below.
What is the permanent contract
Article 15.1 of the Workers' Statute (ET) stipulates the duration of the contract that "The employment contract may be concluded for an indefinite time or for a specified duration". Therefore, an accurate definition of an indefinite contract is one that establishes an employment relationship between two people (or person and company), called worker and employer, which does not have a specific duration in time, but the agreed conditions are in force, if nothing happens, "forever."
This type of contract does not have to be only written, verbal contracts are also accepted. In addition, they grant many companies benefits as long as they meet the requirements that are demanded of them.
Benefits of a permanent contract
An indefinite contract has many benefits, not only for workers, but also for the companies themselves. In fact, the most important are the following:
- Loyalty talent. Not only is the worker being "valued", but he is being "tied" in some way to the company to make him feel important. With this, you also manage to improve productivity.
- Stability. The worker is calmer because he knows that he is fixed and that it is difficult for him to lose his job (although it is not impossible).
- Redundancy payment. Since, if you lose your job for a reason that does not cancel the severance pay, this is higher than in other types of contracts. We speak of between 33 days per year worked or 20 days per year of work (it will depend on the type of dismissal that occurs at that time).
- Bonuses for the company. Since, when formalizing this type of labor relationship, as long as you meet the conditions, you will be eligible for tax benefits.
Types of permanent contract
As a general rule, the best known permanent contracts are those that do not have an end date. However, within them, there are different modalities that could be interesting to know.
Indefinite full-time contract
It is the usual contract for a permanent, with a 8-hour workday, that is to say, complete, where the activities and tasks to be carried out are established.
Long-term remote workers
In this case, and taking into account many situations, it may be the case that a worker wants to request an indefinite distance contract, especially due to the reconciliation of family and work life (for the care of a child, a relative, etc.).
Indefinite part-time contract
Similar to a full-time permanent contract, only, instead of being a full working day, that is, 8 hours, it is partial, approximately 4 hours.
At the time of computing, it must be taken into account that Social Security usually accounts for full days so, every two days, it would be one day worked in the face of employment procedures (INEM, SAE, SEPE), or for the Social Security.
Indefinite fixed discontinuous
This type of indefinite contract is used for those people who provide a service during a regular period throughout the year. For example, when collecting in the field. When that worker is permanent, but does not work all year, the labor figure that protects him is this type of contract.
When does a contract become an indefinite one
The first thing you should know is that any type of contract can be turned into an indefinite contract. Minus the permanent contract itself, of course. In fact, it is the dream of many employees who like the company where they work and want to have something more "lasting".
Sometimes when a violation or fraud of the law is committed, the contract automatically becomes indefinite. This can take place, for example, when a worker is not registered with Social Security and has completed the fixed trial period; or when a contract has not been made in writing (as long as the regulations require it). Likewise, it can occur in the case that there is a temporary contract, or for work and service, that takes a long time (you may remember how the actor in the movie Mortadelo y Filemón managed to make his temporary contract become indefinite).
In addition to those infringement cases, a contract can become indefinite when it is agreed between the company and the worker.
Bonuses to pass a contract to be indefinite
We are going to explain the benefits that have been discussed previously since, as an incentive for companies to hire their workers indefinitely, some interesting bonuses were developed. For example:
- In case a temporary contract that becomes indefinite, the bonus can be between 500 and 1.800 euros per year for a period of 3 years. In addition, there is also a bonus for 4 years of 650 euros in Social Security contributions (provided that the worker meets the requirements to enter this bonus).
- In case of People with disabilities, the bonus can be between 4.500 and 6.300 euros per year.
- If they are victims of gender violence or terrorism, the bonus will be 1.500 euros per year for a period of 4 years. In the case of domestic violence, the amount drops to 850 euros, but remains the same duration, 4 years.
- In the case of self-employed who contract in the form of indefinite contract relatives up to the 2nd degree of consanguinity, then for one year they will have 100% of the business quota covered for common contingencies.