Work launches an anti-fraud plan on 140,000 permanent discontinuous contracts

Discontinuous permanent contracts are the ones that have registered a more spectacular rise with the application of the Labor Reform, by making permanent contracting compatible with the seasonality of jobs.

Oliver Thansan
Oliver Thansan
13 April 2023 Thursday 23:25
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Work launches an anti-fraud plan on 140,000 permanent discontinuous contracts

Discontinuous permanent contracts are the ones that have registered a more spectacular rise with the application of the Labor Reform, by making permanent contracting compatible with the seasonality of jobs. They are also a source of controversy, about how they are accounted for during periods of inactivity, and are also a potential source of fraud. The latter is what the Ministry of Labor wants to tackle by sending 50,000 letters to companies that affect 140,000 contracts, most of which are of the discontinuous fixed rate, and with a focus on education.

In the educational field, the use of the discontinuous fixed contract is not new, even before the approval of the labor reform, with some confusion about its use. However, a ruling from the National Court in March rejected that it can be used for teachers, based on the consideration that teaching is not a seasonal activity but rather a permanent one. Now, sending this batch of letters seeks to mark ground in the education sector and correct potential fraud.

They are letters that were sent in February within a shock plan of the Labor Inspectorate that has focused on the fight against fraud in recruitment. It is a second campaign after the one that was already carried out last year, although at that time with the labor reform much less implemented. Sending remittances of letters is one of the tools that the Labor Inspectorate likes to use. By crossing data, he manages to detect potential irregular situations and directs his letters there, giving employers a period of time to correct the situation or to argue the legality of the contracts signed.

In the Ministry of Labor they recognize that the use of discontinuous fixed is highly discussed in the education sector, but they emphasize that with the labor reform "it will be possible to guarantee that it is applied properly. And that is why we are going to have the capacity to review whether or not this use is correct”, argue sources from Labour.

They add that there has been a significant improvement in the employment situation in education, because before there were many contracts under the contract for work and service modality, which was repealed with the labor reform, and which gave far fewer guarantees and stability.

Discontinuous fixed contracts have existed since long before the labor reform, but they have experienced a boom with their application. In short, work and service contracts have been eliminated, considered by the unions as a source of fraud when used as temporary contracts without justification. The discontinuous fixed offer the guarantee of stability, and the sum of rights, such as seniority, adapting to activities of a temporary nature; which means that they incorporate periods of inactivity, although with the guarantee of a subsequent contracting. What you are looking for now Working with these inspections is to ensure proper use of these contracts.