If you are an employee, you may have come across a so-called 502 contract in one of your jobs. But if you haven't, you should know that it exists. However, it is not for just any contract. In reality, it is a fixed-term, part-time contract.
Do you want to know what the 502 contract is and how it is used? So, take a look at this article where we have tried to answer all the questions you may have. Shall we begin?
What is contract 502
Let's start at the beginning, what is the 502 contract? In reality, it is a contract that will regulate the relationship between worker and employer in a certain way and on a part-time basis. But not in all cases, but due to production circumstances.
This contract was created after the 2021 labour reform and is aimed at covering the needs that companies have on a one-off basis or during so-called "work peaks".
From all this we can conclude several things:
- That the contract is temporary or of a fixed duration. This does not mean that it must have a minimum or maximum time, although when a certain date is exceeded (which is normally 2-3 years), the contract can automatically become indefinite.
- That the cause of the contract is due to circumstances of production. Therefore, when this disappears, the contract would be considered terminated. However, this can be confused with the so-called fixed-term contract. If the situation is foreseeable and it is known that it will occur in certain periods of time, instead of using this contract, the fixed-term contract would be used.
- It's part time, This means that the working week will not be 40 hours, but less. This does not mean that if you need a full-time worker you cannot have one, but in this case you will have to choose the 402 contract, not the 502.
When to use contract 502
Now that you have a better idea of what the 502 contract is, the next thing we need to talk to you about is when it is used, and how to do it. Well, to do so, you have to take into account the characteristic aspects of this contract.
To begin with, the maximum duration of the contract. 502 always requires that the cause that generates its use be unforeseeable. In addition, the maximum duration of this contract is 6 months. However, it can be extended for another six months as long as the collective agreement allows it. It can only be extended once and only if both parties agree.
If the reason that led to the use of the 502 contract is occasional, foreseeable and of limited duration, then the maximum that you can use this contract for is 90 days. But keep one thing in mind: you cannot use it for more than 90 days in the calendar year, regardless of the number of people you need.
Another point to note about this contract is that Overtime is not allowed, unless it is an emergency. You also cannot use the contract for jobs related to education and schools, because these are classified as fixed discontinuous jobs. For example, in cleaning, help in canteens, school transport…
You cannot use this contract for jobs related to agriculture either, which must be fixed-term. The same applies to any job related to seasonal activities, such as lifeguards, hotel staff, etc.
How the 502 contract becomes permanent
When formalizing the 502 contract, as we have warned you before, you should know that, if it is abused, you could find yourself with an indefinite contract.
And if the same person is hired, even if it is temporary contracts due to production circumstances, more than 18 months in a period of 24, the contract becomes indefinite.
Is it good to use this type of contract?
Although you may think that it is the best solution for your company at first, the truth is that in the long term it can be negative.
One of the first reasons we tell you this is because, when you have to hire employees, you need to give them a time for training and adaptation, which involves investing time and money until you learn how to work properly in the company.
On the other hand, having a constantly changing workforce is not the best option, nor is staff rotation, which means that good professional relationships cannot develop between employees. This will harm teamwork and, in some way, the working environment as well.
What is the compensation of contract 502
In the event of dismissal or termination of employment, the compensation received is 12 days of salary per year worked (which is equivalent to one day per month). So, if you use the contract for the maximum duration without extending it, we are talking about compensation of 6 days' salary.
Is Contract 502 clear to you now?