New labor hiring incentives: the most important changes effective September 1
- 06 September 2023
- Business Consultancy
- The incentives that were in force before the publication of Royal Decree-Law 1/2023 are maintained, but most of the bonuses that existed until then are repealed and those that remain are modified.
- The Social Security hiring bonuses become fixed amounts and are only valid for permanent contracts.
- New requirements for companies are detailed: not to have been disqualified from obtaining public subsidies and aid, to be up to date with tax and Social Security payments and to have an Equality Plan when this is mandatory.
- The hired worker must be kept for at least one year or up to three years, as the case may be (there are some exceptions).
- New exclusions: bonuses will not be applied to the hiring of family members up to the second degree (except for people with disabilities), or people who have been in the same company in the previous twelve months under an indefinite-term contract, or those who have terminated another employment contract in another company of their own free will during the last 3 months. In addition, those employers who have terminated or are terminated due to a recognized unfair or collective dismissal will be excluded for twelve months from the incentives.
- In the case of part-time contracts, the amounts will be reduced proportionally to the working day, so that it will not be less than 50% of the full-time working day.
- A new system of reimbursement of the benefits obtained in the event of non-compliance is established: the amounts not paid must be returned with the corresponding surcharge and late payment interest, and those companies that go to countries that are not part of the European Union must return the bonuses received in the previous four years.