As Spain was affected by the economic crisis that hit European countries a few years ago, the local government created a set of policies to sustain the development of the employment market. In the last two years, the Spanish employment market marked a relevant expansion and there was observed an increase in the number of full-time contacts. Amongst the numerous employment policies available in Spain, one addresses to the employment of vocational employees, under the Royal Decree 395/2007. Our team of Spanish lawyers can advise on the incentives available under this program, as well as on other incentives, mentioned below. 

 

 

A company in Spain can benefit from the reduction of social contributions for the employment of vocational employees. The incentive can be allocated if two conditions are satisfied, as presented below: 

 

• developing training programs within the company;

• granting leaves of absence for the employees in order to participate at vocational trainings. 

 

The reduction of the social contributions paid by a company in Spain can also be achieved by signing indefinite-term employment contracts, one of the main concerns of the Spanish authorities, as this type of contract provides a certain level of economic stability for all the parties involved, including for the state. 

 

Furthermore, it is highly encouraged to modify a temporary employment contract into a full-time, indefinite one, if this option is possible for a specific job position within a company. Our team of lawyers in Spain can offer in-depth information on the employment legislation available here. 

 

 

A Spanish employer can benefit from other tax advantages when signing a contract on an indefinite basis. This can be applied if the employee has an age below 30 years old or if the hired person receives unemployment benefits. 

 

The employer can also enjoy the reduction of the social contributions for a period of three years, provided that the employee has an age between 16-30 years old or above 45. 

 

Special incentives are also available when hiring employees who are included in special social categories (disability, socially excluded persons and others). 

 

Businessmen are invited to contact our law firm in Spain for more details related to other incentives encouraging employment in this country.