Has Inspection sent you a letter about discontinuous fixed-term contracts? So keep reading

Thus began a specific campaign to ensure proper compliance with the new hiring rules arising from labor reform. One of the star figures of the same, the discontinuous fixed contract, has experienced in the last two months a special increase, fruit of the disappearance of others, like the one of work and service.

This mass mailing of letters to companies is intended to be a precautionary warning of signs of fraud. In this way, the aforementioned companies are sought to regularize the situation and thus avoid possible headaches and sanctions.

The purpose of this campaign is also to verify that these types of contracts are not being used to cover fixed but continuous needs for the company, replacing the indefinite, which must be the ordinary mode of the labor market. In addition, it is also intended to control that periods of inactivity are not taken advantage of for the undue enjoyment of unemployment benefits while working irregularly.

What does it mean to receive this letter?

• This letter is not a notification received by the electronic headquarters of the TGSS to be answered, but a simple communication informing of a specific circumstance that occurs in the company and that the ITSS understands that it could constitute a fraudulent act.
• The letter tells the company that those contracts that are not transformed within one month of receiving the communication will be the subject of the corresponding inspection action.
• And it is also warned that the transgression of the regulations on contractual modalities is classified as a serious infraction.

How should I act?

Well, there are basically two options: do nothing or proceed according to the suggestion of the communication received.

• If you decide not to do anything, as it is not a notification that must be answered, you only need to collect information and documents that prove this behavior in case the ITSS finally decides to act in the terms contained in the communication received, and thus be able to justify the decisions taken and clarify that the evidence argued by the ITSS does not respond to a fraudulent reality.
• If it is decided to act, it will be necessary to proceed in accordance with the suggestion of the communication received, transforming the discontinuous fixed contracts into indefinite ones.

How do I transform discontinuous fixed-term contracts into indefinite ones?

There are two ways to do this:

• By means of a procedure before the General Treasury of the Social Security, modifying the discontinuous fixed-term employment contract held by the worker until the date on which the notification is received, which must be taken from the date on which we wish to make this modification of an ordinary indefinite contract.
• Through a procedure before the State Public Employment Service, SEPE. First by communicating this contract to SEPE as if it were a new indefinite contract and then by formalizing an agreement between the company and the worker (novation of the contract) stating that from a certain date the contractual relationship between them will change from a discontinuous fixed indefinite contract to an ordinary indefinite contract and thus the problem would be solved.

If you need more information, do not hesitate to contact DATA and SERVICES.