Signing a contract in a training modality* aims to facilitate the insertion in the work market for people under 30 who do not have a particular training or need to recycle into other skills.
As an employer this option is interesting for you due to its low social security costs.
* This contract is officially called in Spainish: “Contrato para la formacion y el aprendizaje”
Who is legible?
- Individuals aged from 16 to 30.
- He or she has not performed the same job in the company before.
Characteristics of the contract.
- Full time contract, with 10 hours per week allowance for specific training and e-learning during first year, and 6 hours per week during the following years.
- Minimum period of 1 year, extendable to a maximum of 3 years.*
*The minimum period for workers in the service sector ( restaurants, hotels,..) is 6 months, instead of 12 months in the general case.
How does it work?
The employer, beside providing the job and paying the wage, pays for the employee to be trained in a related area.
This has to be done through a registered company, that provides business courses for staff training.
Later, the social security will refund the cost of the course,up to 100%, as a reduction in the company’s social security contribution or by means of a actual payment, if the balance is in favor of the employer.
For the Social Security to refund the costs and apply the benefits the company doing the training must be a officially registered.
As we just mentioned, during the time of training the employer pays reduced social costs for the employee.Once the training costs are refunded, the total costs of social security for each employee are:
- 96€ per month in general,
- 0€ per month, for employees who were registered job-seekers prior to the contract.
For example, for a learner who was not registered as job-seeker before signing the contract and during the first year of training the company’s payment would be as followed:
1. Apart from the wages, the company pays 215€ /month to Limit Consulting for course materials and other educational arrangements.
3. Two months after the first payment the Social Security starts refunding 119€ (215€ – 96€)monthly to the company.
If the company has other employees this will come as a reduction in the company’s contributions to Social Security.
For employees that were previously registered as job-seekers ( “paro”) the total cost is zero; i.e Social Security will refund the totality of the payment: 215€,however employers with outstanding debts with Hacienda or Social Security cannot benefit from the 96€ final reduction even if this is the case.
Social Security reductions for contracts that become permanent after the training period
After the training period is concluded, it may be decided to offer a permanent job to the employee.
In such case incentives apply, in the way of a reduction of social security costs for 3 years.
The total amounts are, for:
- Men: 1500€/year
- Women: 1800€/year.
If the work-relationship is terminated after the training period, the employee has full unemployment entitlements. (except if he or she is a direct family member of the employer). The company has to pay no redundancy costs.
Where to get the courses
LimitConsulting can offer Official Training courses in English for your staff. See the list of occupations approved for training.
At this stage we are preparing the syllabus of various official courses in English. If you are interested in employing someone in this modality and/or you need a course in English , let us know.