Invest in the training contract:
Important savings and advantages for companies.

The only subsidised contract for unemployed youth.

We recently commented in other posts that the RD Law of December 28, 2018 repealed most of the subsidised contracts.
As a result, since January 1st, 2019, bonuses and hiring incentives have largely disappeared.
Many clients ask us what kind of contracts they can create to reduce costs.

From the Pérez Parras Economists & Lawyers Firm in Málaga and Nerja we advise you to invest in the training contract.

It is the only subsidised contract for the hiring of unemployed young people. And it is a contract that, when well made, will bring great savings and advantages to your business.

What are the benefits for the company?

1. Zero cost:

2. 100% aid for social insurance.

3. 100% aid for theoretical training.

4. Additional aid between 60€ and 80€, in concept of tutoring.

5. The transformation of a training contract into an indefinite one is encouraged at its end: 1,500€ and 1,800€ for a worker.

6. The salary is established in the collective agreement. In its absence, the SMI (Inter-professional Minimum Wage) is in proportion to the time actually worked: 75% the 1st year and 85% the 2nd and 3rd year.

7. No contractual limits in this modality for a single company. Make as many training contracts as necessary. Remember that a worker in training always needs a tutor by his side.

8. No penalties in case of dismissal.

9. No refund of the benefits applied in Social Security required.

10. By incorporating this type of contract in your company, you contribute not only to reduce the employment tax rate in this group, but also to train young people in a specific trade, getting qualified personnel in your workforce.

Which type of workers can be included in this contract?

Through a training contract young employees will learn a specific trade & you will get qualified personnel

1. Unemployed youth between 16 and 24 years old (enrolled in the SEPE). Without age limit, if it involves people with disabilities.

2. They do not need a school / university degree related to the occupation.

3. To access some certificates they will require some minimum studies in ESO.

4. Commitment to carry out the training.

5. Internet access and have the basic skills to carry out online training.

What obligations must the company fulfil?

1. With any grant, the company must keep up with any public body.
2. Responsibility in rigorously complying with the essential elements of this modality, training and working day.

What else is there to know about the training contract?

The training contract, the only contract with a grant, aimed at hiring unemployed young people will bring great savings and benefits to your company.

1. The estimated duration for the process is between 20 and 30 days, since it needs prior authorisation from the SEPE; so we advise companies to take it into account when planning the contract.

2. The training contract duration will generally be 1 year, extendable up to a maximum of 3 years unless other limits are regulated by collective agreement.

3. The training contract is made full-time and is intended to make work compatible with specific training for your job, dedicating 75% of your work day (30 hours) and 25% of the day to training (10 hours) during the 1st year and 85% work and 15% training in the 2nd and 3rd year.

The worker:

4. The worker must not have been linked to the company in the previous 6 months and not have worked for the same company at the same position referred to in the contract for 12 months.

5. The worker receives training in the form of tele-training through a centre accredited by the Public Employment Service. The training received by the worker is official and regulated, with the delivery of  a Certificate of Professionalism at the end.

6. With this training contract, the worker acquires the theoretical and practical training in his job.

7. Self-employed people can hire their children in this modality.

Do not forget that there are currently grants from the Junta de Andalucía for the transformation of temporary contracts into indefinite ones and for an increase in working hours, as well as the Employment Grant. Keep informed and
do not hesitate to consult our office of Economists & Lawyers in Malaga and Nerja  . We will study your case carefully and will be very happy to assist you.