11 of March, 2025

When managing our staff, we should take into account the types of employment contracts of each employee. The available options in four: permanent, temporary, training and internships. Thus, one or the other should be chosen after each incorporation.

Permanent employment contracts

This type of hiring allows to establish a working relationship without a time limit. In principle, it does not have an end date. As long as the company’s activity lasts, the contract will be in force. Next, we will see the different types of permanent employment contracts that exist.

The objective of this type of contracts is to retain talent and professionals. Providing them with a stable framework for their professional development. In addition, there are a series of bonuses or incentives to offer them. Thus, it is intended to counteract the temporariness, a drag for our labor market.

Fixed-discontinuous contracts

The activity is carried out intermittently, in certain months of the year. When not working, the contract is suspended and reactivated when returning to work. It can be full-time or part-time, and the employee is part of the staff. They have come to replace the discontinued contracts for work and service, but with a permanent character.

Telework contracts

As a result of the boom in remote work during the pandemic, the Government promulgated the Teleworking Law. This type of contracts is just another permanent contract where clauses regulating work outside the office are included. Thus, this modality of remote work is regulated.

Part-time or half-day permanent contracts

One of the curiosities of this type of employment contracts is that it can be verbal or written. Of course, it is highly advisable to have it recorded in writing. Otherwise, it will be considered that the permanent contract is full time. Whenever it is part time, it must be recorded in writing.

In part-time contracts, less than the 40 hours per week established in the full-time day are worked. It can be because the worker has a reduction of hours, or because he/she is hired part-time. The shift can be split.

Temporary employment contracts

Along with the permanent ones, these are the most common types of employment contracts. They have a specific duration that both parties should know at the time of signing. As with permanent contracts, they can be for full or part-time work. It should always be recorded in writing.

Businesses prefer temporary to permanent contracts because the less seniority, the lower the dismissal compensation will be. However, the cause of the temporariness must be justified. If not, the organization can be sanctioned. These are the main reasons for offering temporary contracts:

Performance of a specific task or service: they are signed so that the employee performs a task. They are limited in time, although their duration is uncertain. If it exceeds 12 months, the worker must be notified 15 days in advance to terminate the contract.
Eventual due to circumstances in production: they serve to face peaks of production, excess orders, etc. The causes justifying the contract must be specified in it. If the collective agreement does not state otherwise, they will not exceed 6 months in a period of one year.
Interim: with this type of contract a worker is replaced who has the right to keep the job. The interim contract specifies who is replaced and why. A good example of this are the replacements due to pregnancy and maternity leave.

It is important to note that the concatenation of temporary contracts is an illegal practice. Many times, temporary workers chain contracts to not offer a permanent one. Something that, however, is not allowed. In addition, some types of temporary employment contracts have a maximum limit.

Training employment contracts

Training or apprenticeship contracts are aimed at people without the necessary knowledge for the performance of a certain job. Thus, they combine theoretical training with practice. A common mistake is to confuse them with internship contracts, but they are two different types of employment contracts.

With this, it is intended to promote the employment of young people aged 16 to 25 who do not have professional qualifications. The employer can access a reduction in Social Security contributions. If the staff does not reach 250 employees, it will be 100%; if it exceeds this number, 75% is reduced.

A training or apprenticeship contract will have a minimum duration of 6 months and a maximum of 2 years. It can be extended up to twice, each time for a minimum of 6 months. 15% of its working day must be allocated to theoretical training.

Internship employment contracts

They are aimed at students who want a professional experience that matches their studies. This type of contracts can be signed up to 5 years after the worker has obtained his/her degree, 7 years in case of any type of disability. The working day can be full or part-time.

For businesses, it allows them to access young talent. In addition, it implies savings in compensation costs since the salary is 60% in the first year and 75% in the second. They have a duration between 6 months and 2 years, which can be extended twice for 6 more months each time. In addition, the intern can be hired.

Remember that you will need a human resources software like Sesame HR to manage your workers’ contracts. Discover how to do it on the Sesame HR blog and with our guides. Managing the workforce has never been so easy!

Professional with over 20 years of extensive experience in various areas of Human Resources (Recruitment, Training, Occupational Risk Prevention, and Personnel Management). Experience in the Management Department: Broad understanding of the company and HR.

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cristinamartin

HR Content Specialist

Types of employment contracts in a company