Today we'll talk about address the fixed-term contract in the context of substitution due to pregnancy risk and the associated leaves for childbirth (maternity and paternity).
In the following post provided by Global Mind Advisors, we will clarify some issues concisely:
When a person has their contract suspended due to parental leave or pregnancy risk, who covers the leave payment?
The company will not pay their salary during the leave period; it is the insurance company (mutua) that will take care of it, but the company will still be responsible for continuing to pay social security contributions.
What are the implications that arise when formalizing a fixed-term substitution contract?
If the hiring is done correctly, the company will apply a bonus of 366 euros per month to the total amount of Social Security contributions, both for the person who is on maternity leave or pregnancy risk and for the person replacing them.
In relation to the bonus, changes have been implemented, and we now provide a detailed explanation on the matter.
There is a significant change as of September 1, 2023, according to Royal Decree 01/2023.
Previously, when a substitution contract was made for an employee who was on parental leave, social security contributions were 100% subsidized for both the person on leave due to childbirth or pregnancy risk and for the individual replacing them. The same applied in the case of a female employee on leave due to pregnancy risk.
According to the changes made in labor hiring incentives starting from September 1, 2023, this subsidy has now been adjusted to 366 euros per month.
Furthermore, the requirements have been increased. We have listed them all here:
Employee
- The person to be hired must be under 30 years old and registered as a job seeker.
- Excluded: Hires up to the second degree of consanguinity and the spouse of the employer.
- People who have been employed on an indefinite contract in the last 3 months are excluded.
- Individuals employed in the same company during the 12 months prior to registration with an indefinite contract, or (in the last 6 months with a fixed-term contract) are excluded.
Company
- Must be up to date with payments to the tax authorities and Social Security.
- Not to have been disqualified from applying for Social Security benefits.
- Having an equality plan, if the company is required to do so (Organic Law 3/2007).
- Not having carried out an unfair dismissal or collective dismissal in contracts with subsidies in the last 12 months.
