Labor will monitor fraud in the star contract of the reform

The Labor Inspectorate will launch next week a campaign against fraud in the star contracts of the labor reform, the discontinuous permanent ones.

Thomas Osborne
Thomas Osborne
19 May 2022 Thursday 00:10
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Labor will monitor fraud in the star contract of the reform

The Labor Inspectorate will launch next week a campaign against fraud in the star contracts of the labor reform, the discontinuous permanent ones. It is a type of contract designed to deal with seasonality in employment and that in April registered a spectacular increase, adding a third of permanent contracts. Last month, permanent hiring took a big jump, accounting for practically half of the total.

The announcement of this inspection campaign was made by the Second Vice President and Minister of Labor, Yolanda Díaz, in Congress following a question from the PP that questioned the effectiveness of this contract. Ministry sources indicate that there are no specific indications of fraud, but that they want to make sure that these contracts are used well.

“We started with the discontinuous fixed line and we will continue with other contractual modalities. It is important to do pedagogy at the start of the labor reform... Of course there may be irregularities in the contractual formulations. What I ask is the responsibility of employers to do things right,” said Yolanda Díaz.

In the April data, the increase in this type of contract was surprising. Among permanent contracts, they took 34% of the total, while permanent part-time contracts added 25%. The rest, 41%, were permanent full-time. Precisely, the majority of discontinuous and part-time permanent contracts was an element that the opposition wanted to oppose to the great increase in permanent contracts.

“It is a novel figure and as such it implies certain risks of abuse, to the extent that when it is an intermittent task, the details do not have to be predetermined in advance,” says Raúl Olmos, from UGT. He also argues that the increase in this form of contracting in April is logical due to the elimination of work contracts and their abuses, since temporary contracts can no longer be justified for the performance of contract or subcontract work.


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