The substitution contract is a common employment modality in Spain, used to temporarily cover the absence of an employee with the right to return to their position. However, in certain circumstances, this contract can become permanent, granting the employee new rights and greater job stability. In this article, Orience explains when and how this change occurs, its legal implications, and how we can guide you to understand your rights and responsibilities in this situation.
What is a substitution contract?
The substitution contract, also known as a contract for the substitution of an employee, is regulated under Article 15 of the Workers’ Statute and Royal Decree 2720/1998. Its purpose is to replace an employee who is temporarily absent—for example, due to medical leave, maternity, paternity, or a leave of absence—ensuring continuity of work without affecting the right of the original employee to return.
To be valid, this contract must meet certain requirements:
- Clearly state the reason for the substitution.
- Identify the employee being substituted and the reason for their absence.
- Indicate the start date and the estimated end date of the contract.
The contract automatically ends when the substituted employee returns to their position. However, there are situations in which the employment relationship extends beyond the expected period or the employer fails to meet the formal requirements, which may cause the substitution contract to become permanent.
When a substitution contract becomes permanent
Spanish labor legislation establishes that a temporary contract is presumed permanent if the cause for temporariness is not justified or if there is a breach of law. In the case of substitution contracts, there are several scenarios where this may occur:
1. The substituted employee does not return and the company keeps the substitute
If the original employee does not return (for example, due to resignation or retirement) and the company continues employing the substitute without formalizing a new contract, the relationship automatically becomes permanent. This is because the cause for the temporary contract no longer exists.
2. The contract exceeds the maximum allowed duration
If the substitution lasts longer than established by law or the contract itself without valid justification, the law interprets this as continuous employment, converting the contract into a permanent one.
3. Lack of cause or absence of a written contract
When the substitution contract is not formalized in writing or does not clearly specify the reason for the substitution, the employment relationship may be considered permanent from the start due to the absence of a justified temporary cause.
4. Successive temporary contracts
According to Royal Decree-Law 32/2021 on labor reform, if a person chains temporary contracts in the same company for more than 18 months within a 24-month period, the contract becomes permanent. This includes substitution contracts.
Consequences of the contract becoming permanent
When a substitution contract becomes permanent, the employee acquires all the rights of a permanent worker, including:
- Right to severance pay in cases of unfair or disciplinary dismissal.
- Greater job stability and protection against arbitrary dismissal.
- Access to internal promotions and seniority benefits.
Additionally, the company may face sanctions from the Labor Inspectorate if fraud in temporary hiring is detected. According to data from the Ministry of Labor and Social Economy, in 2024 more than 280,000 temporary contracts were converted into permanent ones following labor inspections in Spain, a 12% increase compared to the previous year.
What to do if you believe your substitution contract should be permanent
If you suspect your contract is being kept temporary without justified cause, it is advisable to act immediately:
- Consult a labor lawyer or an advisory service like Orience to analyze your case.
- Request written information from the company about the cause and duration of the substitution.
- File a claim with the Mediation, Arbitration, and Conciliation Service (SMAC) or directly with the courts if necessary.
At Orience, we offer personalized guidance to help you understand your contractual situation and claim your labor rights effectively. Our team reviews your case, examines your contract, and guides you through the process to obtain the job stability you deserve.
Advantages of converting your substitution contract into a permanent one
- Financial security and stability: with a permanent contract, you can plan your future without job uncertainty.
- Legal protection: greater defense against dismissals and entitlement to severance.
- Accrued rights: such as seniority, vacation entitlement, and access to internal promotions.
Moreover, converting temporary contracts into permanent ones also benefits companies, which gain in productivity and employee commitment. In fact, according to INE data, permanent employees have 20% lower turnover than temporary employees, improving efficiency and talent retention.
Frequently asked questions about substitution and permanent contracts
How long can a substitution contract last?
A substitution contract lasts as long as the substituted employee remains absent. There is no general limit, but if it is extended unjustifiably or without cause, it may be considered permanent.
What happens if the substituted employee does not return?
If the original employee does not return and the company keeps the substitute, the contract automatically becomes permanent unless a new contract is formalized with a different justified cause.
Can a worker with a permanent substitution contract be dismissed?
Yes, but there must be a legal cause, and the worker has the right to severance pay if the dismissal is unfair or unjustified.
How can I know if my substitution contract is fraudulent?
If your contract does not clearly specify who you are substituting, the reason for their absence, or is not signed in writing, it may be considered void or fraudulent. In such cases, Orience can help you review your employment documentation.
Where can I file a claim if my contract should be permanent?
You can file a claim with SMAC or the Social Court. Obtaining professional legal advice, such as that from Orience, increases your chances of success in the claim.
Conclusion: know your rights with Orience
The transition from a substitution contract to a permanent one can be key to your professional development and stability. At Orience, we help you understand your rights, identify irregularities, and take legal action if your temporary contract should be permanent.
Contact us to receive personalized guidance and take the next step toward your job security.