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Contract types for onboarding Fresh talent in Spain

Updated: Mar 15

Are you looking to onboard fresh talent in your company but unsure of the right agreement and contract types?

In Spain, there are different modalities to do so depending on the type of qualification and situation for the talent. The following modalities are focused on fresh talent with little to no working experience who wish to gain work experience and/or complement their studies.

1. Convenio de prácticas (Internship Agreement)

Characteristics: Not an Employer – Employee relationship but rather a learning agreement Degree Requirement: None Benefits for the company: Companies do not contribute to social security for internship agreements

For students that would like to do an internship related to their field of study. An agreement has to be signed between the between the student, the University, and the company.

Two types, curriculares and extracurriculares and depending on which type, they can be remunerated or not.

Prácticas Curriculares are mandatory internship hours that are mandatory to obtain the degree. They are part of the study plan, and therefore do not entail any type of employment relationship, so they are not paid or contribute to social security.

It is important to highlight that with internships that are curriculares there is no employment relationship between the intern and the company therefore any regulation for conditions are highlighted in the internship agreement and not directly from the collective agreement or worker´s statute.

Prácticas Extracurriculares are internship hours that are not part of the study plan, they are done voluntarily by the student. In this case, there is a special employment relationship, and therefore the worker receives a remuneration that is fixed in the agreement. The company must communicate its registration to social security.

There are cases in which companies, instead of remunerating the student, prefer to pay certain compensatory expenses such as travel expenses to the company or food, but in no case can they be considered as remuneration.

The purpose of these agreements is for the student to acquire training and not to develop a job. The Company is responsible to assign a tutor to the student in order to submit internship reporting to the University.

2. Contratos para la formación y el aprendizaje (Contracts for training and learning)

Characteristics Relationship: It is an Employer – Employee relationship Degree Requirement: None Benefits for the company: You can receive a 40% reduction of the social security costs (bonificación)

For young people aged 16-30. It can be carried out for young people who do not have training related to the work they are going to do. The objective of these contracts is to provide training to those workers who do not have professional training, at least in the sector in which they are going to work.

In this type of contract, theoretical and practical training alternate. During the first year of the contract, the worker will dedicate 75% of the day (30 weekly hours) to effective work and 85% (34 weekly hours) in the second and third years. The rest of the time will be for theoretical training, 10 hours per week during the first year and 6 hours per week in the second and third years.

Requirements to extend this type of contract

  1. Not have completed a university degree at the time of hiring related to the training.

  2. Registered as a job seeker, at least 1 day (in order to access social security benefits).

  3. Not having exhausted the maximum duration (2 years) established for training contracts, in the same company or in a different one.

Duration: As indicated in the respective collective agreement, usually no less than 6 months and no more than 3 years.

Probation Period: None

Salary: The salary is fixed by collective agreement, but it cannot be less than the minimum interprofessional salary (Workers Statute)

Vacation Days: As stipulated in the corresponding collective agreement, usually 22 working days per year.

The contract for training and learning is a contractual modality whose objective is the professional qualification of young workers, alternating a paid work activity in a company with a training activity, to favor their labor insertion.

It is important to bear in mind that with this type of contract, since they are contributing to social security the employee may have the right to unemployment.

Characteristics: It is an Employer – Employee relationship Benefits for the company Employing a person with disabilities the company can enjoy a discount in employer social security contributions from 30%-50%. If the person is employed through a CEE (Special Employment Centers), the discount is 100%. When transferring into indefinite, there are bonuses of 500 euros per year for men and 700 euros for women, this for a period of three years.

Oriented to professionals who are taking their first steps within their area or sector. Its objective is to grant professional practice to a worker according to their level of studies. The next type of contract after having completed this type of contract is usually an indefinite term contract.

Requirements to extend this type of contract

  1. Have completed a university degree, professional training or middle or higher degree, a professional certificate or equivalent studies.

  2. Degree must have been obtained in the last 3 years (for persons with disabilities up to 5)

  3. Not have had a contrato en prácticas contract in another company for 1 year.

Duration: The contract should be no less than 6 months and no more than 12 months. One renewal of the contract is allowed.

Probation Period: It shall not be greater than 1 month

Salary: As established in the corresponding collective agreement based on the professional category and never less than 14.000€ per year (full-time) as of 2022.

Vacation Days: As stipulated in the corresponding collective agreement, usually 22 working days per year.

So why is being familiar with different types of agreements in Spain important?

It is important to bear in mind that with this type of contract since they are contributing to social security the employee may have the right to unemployment. Companies can select and develop future talent through these types of modalities and increase their staff retention rates since many interns secure job offers after their internship ends. As a former fresh talent, you assimilate into the new role faster than an external hire might.

Fresh talent challenge the “the way we’ve always done it” mentality and bring fresh, new ideas to the company. It is good to question processes and this can help to see a better way of doing things that a manager might not.

Do you have interns onboard or would like to but do not know how?

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