INCENTIVES FOR RECRUITMENT OF YOUNG PEOPLE, LONG-TERM PARTICIPATION, PROMOTION OF STABLE EMPLOYMENT, TRANSFORMATION OF TEMPORARY CONTRACTS TO INDEFINITE ONES AND INCREASES OF WORKING HOURS

If you are a company and want to obtain some type of incentive for hiring your staff, consult the Pérez Parras Economists & Lawyers Firm in Málaga and Nerja.

On December 28th, 2018, many subsidised contracts were eliminated and although some measures have been approved to serve groups with special difficulty, these measures are insufficient.

When we advise our clients, we recognise that the requirements needed to obtain incentives are difficult to fulfil. The worst comes when, after receiving a bonus and a worker is not kept the minimum period required, the company must finally return the deducted amount.

Pérez Parras are now going to inform you about other types of incentives that currently exist in Andalusia.

These are aids that seek to favour stable employment, the hiring of young people, the transformation of temporary contracts into permanent contracts and the extension of working hours for permanent workers who provide part-time services.

These aids also require that a series of requirements be met. We will advise you well, and if you follow our instructions, it will be easy to access the benefits and comply with the requirements.

Important incentives when hiring will help you prosper

What incentives can you get?

1. Incentives for hiring young Andalusians. Youth Employment Bonus.
2. Incentive for indefinitely hiring recipients of the Youth Employment Bonus
3. Incentives for the creation of permanent employment, as well as the indefinite transformation of temporary contracts, which are carried out by companies or employing entities located in Andalusia.
4. Incentive to extend the part-time working hours of Andalusian employees with an indefinite part-time contract.

What should you know?

1. Youth Employment Bonus:

Note: We have updated the information of our 2018 post: “Recruitment Grants when Hiring Young People in Málaga”.

Workers’ requirements:

1. This incentive is aimed at hiring young people between 18 and 29 years old.
2. Hiring for a minimum period of twelve months.
3. Must be in unemployment situation, registered as job seekers.
4. Be enrolled in the National Youth Guarantee File.
5. Be in possession of some of the following degrees: Graduate in Compulsory Secondary Education, Vocational Training, Baccalaureate or university studies
6. Registered as residents in Andalusia.

Requirements for the beneficiary entity:

1. Companies must be up to date with public bodies.
2. Validly constituted companies, whatever their legal form, including self-employed workers.
3. Companies that have not been convicted by a final court ruling or sanctioned by a final administrative decision in the last year for having committed a very serious fault in terms of prevention of occupational risks, or have been excluded from the benefits derived from employment programs.
4. Pay the payroll every month by bank transfer.
5. Pay the corresponding social insurance monthly.

Amounts:

1. For full-time contracts: 6,000€.
2. By contracting at least 50% of the working day: 3,000€.

In addition, you might be interested to learn about the training contract, compatible with the employment bonus: see our recent post: Training Contract – Advantages – Youth!

2. Incentive for indefinite hiring of recipients of the Employment Bonus (Noteholders)

If after hiring a worker who is a beneficiary of the employment bonus, you decide to keep the relationship indefinitely, you can choose new assistance to promote job stability.

1. For indefinite full-time contracts: 8,000€
2. For indefinite contracts for at least 50% of the working day: 4,000€

The extension of working hours is encouraged

3. Stable employment and transformations of temporary contracts into indefinite ones.

1.-The indefinite hiring of unemployed people registered as unemployed jobseekers in the Andalusian Employment Service will be encouraged.

2.-The transformation of fixed-term contracts into permanent ones, both full-time and part-time, provided that the working day is not less than 20 hours per week.

Amounts:

8,000€ for each indefinite hiring of a jobseeker or the transformation of a temporary contract into an indefinite, full-time contract.
When the hiring or transformation is done part-time, 4,000€, the minimum working time being 20 hours per week.

If, at the time of hiring, the hired person is in any of the following groups, the amount will be 8,800€:

• Long-term unemployed people. Registered 360 days in the immediately previous eighteen months.
• Persons over 45 years of age, unemployed uninterruptedly in the previous 6 months.
• People with disabilities.
• Women victims of gender violence.
• Groups at risk or situation of social exclusion that had maintained an employment relationship in the previous twelve months with an Insertion Company.
• Residents in Disadvantaged Areas.
• Transgender or transgenic people according to Law 2/2014, of July 8th, for non-discrimination on grounds of gender identity and recognition of the rights of transsexual persons in Andalusia.
• Persons who, at the time of incentivised hiring, are developing a Personalised Insertion Itinerary managed by the Andalusian Employment Service, provided that it started at least 3 months before and with a minimum duration of 4 hours.

Increases in the incentive amounts:

These quantities are increased, if the contracting is done in the manufacturing sector. 10% more, when hiring a woman.

4. Extension of the working day

The Government encourages the extension of working hours of the Andalusian people who have a part-time work contract of indefinite duration.

1. The full day must be maintained uninterrupted for at least 36 months from the time of the expansion.
2. The extension must be at least 50% of the ordinary day, 20 hours per week to obtain 4,000€; or 25% of the ordinary day, 10 hours a week to obtain 2,500€.

The amounts established in the previous paragraph will increase for activities in the manufacturing sector. Also, when the worker is a woman victim of gender violence.

For more information about deadlines, form of payment, what to do if the employment relationship is terminated, you can consult our office of Economists & Lawyers in Malaga and Nerja .