WORK CONTRACTS FOR TRAINING AND LEARNING
(“CONTRATO DE TRABAJO PARA LA FORMACION Y EL APRENDIZAJE”)
The Education Reform Law (Royal Decree Law 03/2012, of 10 February) aims to promote the employment of people under 30 years of age. These contracts can lead to professional qualification of workers while incentivizing hiring companies with several tax advantages.
Iberdata21 are approved by the SEPE center (Public State Employment Service) and accordingly we can provide the theoretical “distance learning” required for these contracts.
Companies and Autonomos can enter Contracts with workers over 16 years and under 30 years of age. This will apply until the National unemployment rate falls below 15%. When the National unemployment rate falls below 15%, this arrangement will apply to workers between the ages of 16 and 25 years.
These are 1 year contracts that are renewable for up to a maximum of 3 years.
On expiry the employee may again be rehired under a training contract in the same company or another company, but in training under a different occupation.
Example: A 21-year-old Trainee could make 3 extended contracts of three years each (or 1 year each), the first as a secretary, the second as a clerk and the third as a technical salesman. (However, there are restrictions on extending training contracts beyond 3-years - see Note (1) below).
More than 70 different occupations are covered (see list at end).
AT ZERO SOCIAL SECURITY COST TO THE EMPLOYER:
The scheme is designed to compensate the Employer who pays the training fees for the Trainee, through Social security credits (either reductions or cash back) equivalent to the Training Fees.
· The Trainee receives his wages
- Not less than the minimum wage per day.
· The company doesn't pay social security
TRAINING ZERO COST
Training Fees: Iberdata21 charges 215€ per month (year 1), 130€ per month years 2 and 3 and Social Security deposits 215€ (or 130€) to Employer's account monthly or Social Security reduction.
TRAINING - DISTANT LEARNING
A Trainee must be allowed 25% of their working time for “distant learning” studies in the first year and 15% of their working time during the second and third year. Training must be directly relevant to the job development.
NO LIMITATION ON NUMBER OF CONTRACTED TRAINEES
There is no limitation on the number of contracted Trainees.
FULL-TIME WAGES FOR TRAINEES
Trainees must be contracted full time.
The minimum wage for Trainees for 2013 is set at 21.51 Euros / day or 645.30 Euros / month (Royal Decree 1717/2012 of 28 December, fixing the minimum wage for 2013). Of course, the Employer can agree to pay more than the Trainee minimum wage. In either case, there is a significant saving for the Employer (see below).
MONTHLY SAVINGS FOR EMPLOYERS
Example of monthly savings by Employers for of a training contract against one of ‘normal’ work and service, assuming that only the minimum wage is paid (different for Trainees than for ‘normal’ employees, according to the different Convenios (Collective Agreements between the Trade Unions and the Government) for 2013.
AT END OF CONTRACT
The Apprentice shall receive full Unemployment and Social Security Benefits, excluding redundancy payments. If the contract is terminated early, normal redundancy payment rules will apply.
INCENTIVES FOR PERMANENT TRANSFORMATION TO NORMAL EMPLOYMENT
Companies that transform these training contracts into permanent employment obtain a reduction in Social Security payments of:
OCCUPATIONS APPROVED FOR TRAINING
Air conditioning installer
Air conditioning - maintenance
Auto mechanic - general (cars, vans)
Chemical Plant operator
Driver- Excavator -earthworks
Electrician - maintenance, repair
Electronics - Industrial maintenance
Fur clothing - hand stitching
Glazier - Industrial
Hairdresser - Unisex
Handmade leather goods
Housekeeper - Hotel
Lathe Operator - Milling
Maid - Hotel
Mason - Hand-crafted stone/marble
Mechanic- Industrial maintenance
Offset Printing Machine operator
Photographer - general
Plastic/Rubber processing - operator
Receptionist - Hotel
Receptionist/Telephone Operator - Office
Roofer - Slate
Roofer - Tiles
Shop Assistant - Trade in general
Steel Worker - Tower construction
Storage services - receiving
Street Market research
Technician - Advertising/Public Relations
Vehicle bodywork painter