In Spain, the bonuses associated with replacement contracts are mainly related to incentives and aid to companies to promote employment in certain circumstances, such as the replacement of a worker during temporary leave or vacations. These bonuses may vary depending on the legislation in force and the specific circumstances of each contract. The most relevant aspects are detailed below:
Replacement contract in general
A substitution contract is used to replace a worker with the right to reserve a job, such as in situations of:
- Maternity/paternity leave
- Temporary disability leave
- Leave of absence for child or family care
- Suspension of contract for any other cause provided for in the legislation.
This type of contract is of a temporary nature, since its duration is linked to the duration of the substituted worker’s absence.
Allowances and subsidies for substitution contracts
Companies that hire unemployed persons to replace a worker may benefit from Social Security bonuses for the duration of the contract. These allowances are designed to reduce labor costs and encourage the hiring of certain groups. The main types of subsidies are detailed below:
Fixed-term contracts entered into with unemployed persons to cover a substitution are entitled to a bonus of 366€/month during that period in the cases:
1. Substitution contracts during the risk due to pregnancy or breastfeeding and for childbirth and care of a minor
- If the substitution is made with unemployed young people under 30 years of age, who cover the leave of a worker at risk due to pregnancy or breastfeeding, a bonus of 366€/month is applied for the duration of the contract
- In cases where the pregnant or breastfeeding worker is assigned to a different position for reasons of risk, a bonus of €138/month can be applied to the contribution quotas during the period in which she works in that new position.
2. Contracts with unemployed persons to replace self-employed persons or members of cooperatives in the same cases as above
3. Contracts with unemployed disabled persons to replace disabled workers with a suspended contract due to sick leave due to IT
In order to be able to apply the bonus, the substitute must meet these requirements:
Sometimes, replacement contracts may include additional bonuses if the replaced worker is from a specific group, such as young people under 30 years of age or those over 45 years of age. These bonuses are intended to encourage the hiring of these groups in particular.
Requirements and conditions
- Duration of the contract: The substitution contract must have a duration linked to the substitution period, i.e. it must be temporary and cannot exceed the duration of the substituted worker’s sick leave or absence
- Registration of the contract: It is necessary to register the contract with the State Public Employment Service (SEPE) in order for the company to benefit from the bonuses
- Verification of sick leave: In some cases, the company must prove that the replaced worker is on sick leave, leave of absence or suspension of the contract.
4. Other specific subsidies or allowances
- Bonus for the hiring of disabled persons: In certain cases, if the replaced worker or the hired worker belongs to a group with a disability, there may be additional bonuses
- Regional or autonomous community incentives: Depending on the autonomous community, there may be additional incentives at the regional level for this type of contract.
The bonuses can cover a significant part of the social security contributions, facilitating both employment stability and the continuity of the companies in situations of absence of key workers.
