The apprenticeship contract: a pathway for young people to enter the labor market

The apprenticeship contract: a pathway for young people to enter the labor market
Educa PHAROS Team

Recently, Spain has seen an overhaul of its legislation governing training contracts, introduced by the Royal Decree 32/2021, dated December 28, on urgent measures for labor reform, ensuring job stability, and transforming the labor market. This update is crucial for those interested in hiring young people under this arrangement, as it requires an up-to-date understanding of the regulations.

This article provides a Detailed overview of the training contract: its definition, the key elements to consider when implementing this type of contract, as well as its advantages and characteristics.

What is a training contract?

A training contract is a type of employment agreement in Spain designed to provide workers with professional qualifications. This contract allows individuals to combine paid work with vocational training, whether within the employment training system or the education system. It is primarily aimed at young people and can last anywhere from 3 months to 2 years, depending on the training program. 

Workers hired under this arrangement must lack the professional qualifications recognized by the degrees required to enter into a training contract. In addition, the training contract offers benefits both to the employee, who receives training and work experience, and to the company, which can take advantage of tax incentives and reductions in Social Security contributions.

With the recent reform of the training contract, two different types of contracts have been established. The first is the work-study contract, which allows employees to work while receiving training in the field of their choice. The second type is the internship contract., aimed at professionals with a college degree or certification, who It offers them the opportunity to complete an internship in a position that aligns with their field of study and the skills they have acquired.

Key Features of the Training Contract

The main features of the apprenticeship contract in Spain, updated for 2024, aim to promote the integration of young people into the workforce and their training, providing them with an opportunity to develop professionally while actively contributing to the labor market. Here’s what they are:

  • Written Confirmation.

All training contracts must be formalized in writing.

  • Duration

The work-study training contract has a minimum duration of 3 months and a maximum duration of 2 years, while the training contract for professional internships appropriate to the student’s level of study has a minimum duration of 6 months and a maximum duration of one year.

  • Age of the worker

It is generally aimed at unemployed young people between the ages of 16 and 30, although this age limit does not apply to people with a recognized disability.

  • Workday

Contracts cannot be part-time and must allow for the combination of actual work with training activities.

  • Social Protection

It covers all insurable contingencies and Social Security benefits, including unemployment and coverage under the Wage Guarantee Fund.

  • Interruptions

Circumstances such as temporary disability, childbirth, adoption, and pregnancy-related risks, among others, will interrupt the calculation of the contract term.

  • Individual Training Plan

It must include an individual training plan that specifies the content of the internship or training and the mentoring activities.

How can a company implement this type of contract?

To implement a training contract in Spain, several essential steps must be followed to ensure compliance with current regulations and the success of the training process. Below is a general procedure based on this year’s updated training guidelines:

  1. Contact a training center: The first step is to contact a training center authorized to provide training related to these contracts.
  2. Get advice on training: It is important to seek advice on the type of training that is best suited for both the employee and the company. 
  3. Register the employee with Social Security: Before the employee begins work, it is necessary to register the employee with Social Security.
  4. Notify SEPE of the contract: Once the contract has been formalized, the State Public Employment Service (SEPE) must be notified.
  5. Submission of documentation: The required documentation, including the contract and the individual training plan, must be submitted to the appropriate entities.
  6. Written confirmation: The contract must be in writing and include an individual training plan that specifies the content of the internship or training and the mentoring activities.
  7. Registration with SEPE: The contract must be registered with the Public Employment Service for validation.
  8. Obtaining a vocational certificate: At the end of the contract, the employee should receive a certificate of professional competence attesting to the training received.

Benefits of the Training Contract

These types of contracts offer advantages for both employees and companies. Some of these advantages are:

Benefits for the Company

The training contract offers companies a number of benefits that are built into its structure and operation. By adopting this type of contract, companies They are positioning themselves to take advantage of a work environment that promotes employee training and skill development, which is essential in an ever-changing job market. In addition, represents an attractive economic opportunity due to the rebates on Social Security contributions, which reduces labor costs without compromising the quality of talent. 

The training employees receive is tailored to the specific needs of their jobs, which It increases productivity and, consequently, the company's competitiveness within its industry. Finally, the training contract strengthens the relationship between the employee and the company, fostering long-term commitment and talent retention, which are essential for business growth and sustainability.

Benefits for Employees

The Training Contract for Employees It represents a valuable opportunity for professional and personal growth. By entering into this type of contract, workers benefit from a practical and theoretical training that improves their skills and increases their employability in the job market. In addition, it guarantees them a living wage during their training period, allowing them to gain experience while receiving fair compensation. 

Comprehensive social protection is another key aspect, since It provides security and peace of mind by covering all contingencies. Finally, access to formal training and the opportunity to earn a vocational certificate upon completion of the contract, enhances your resume and opens doors to future job opportunities. 

References

BOE-A-2021-21788. Royal Decree-Law 32/2021, of December 28, on urgent measures for labor reform, ensuring job stability, and transforming the labor market. Official State Gazette, No. 313, December 30, 2021. Retrieved March 22, 2024, from https://www.boe.es/buscar/act.php?id=BOE-A-2021-21788

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