Chaining Temporary Contracts in Spain: When Do You Become Permanent?

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Have you been kept on a series of consecutive temporary employment contracts and suspect that your employment status should actually be permanent? In the Spanish labor market, temporary employment has historically been one of the greatest sources of job insecurity and litigation. With the entry into force of the latest labor reform, the rules of the game have changed drastically to penalize the abuse of fixed-term hiring and to promote stability. If you find yourself in this situation, knowing your rights and the limits imposed by law is the first step to securing your job and guaranteeing your peace of mind for the future.

The Legal Framework: What Does the Workers' Statute Say?

Spanish legislation is highly protective of the principle of employment stability. The key regulation governing this matter is the Real Decreto Legislativo 2/2015, de 23 de octubre, por el que se aprueba el texto refundido de la Ley del Estatuto de los Trabajadores (hereinafter, the Estatuto de los Trabajadores or ET / Workers' Statute).

Following the labor reform, the general rule is that an employment contract is presumed to be entered into for an indefinite duration. Temporary contracts have been restricted to very specific and defined situations, fundamentally two: due to production circumstances (por circunstancias de la producción) or for the substitution of a working person (por sustitución de persona trabajadora) (Article 15.1 of the ET).

The Golden Rule of Chaining Contracts: Article 15.5 of the Workers' Statute

The main mechanism to prevent the abuse of temporary employment is found in *Article 15.5 of the Estatuto de los Trabajadores**. This article establishes a time limit and a maximum number of contracts beyond which a worker automatically acquires the status of a permanent employee (trabajador fijo*).

The current regulation establishes that workers who, within a period of 24 months, have been contracted for a period exceeding 18 months, with or without continuity, for the same or a different job position with the same company or group of companies, through two or more temporary contracts due to production circumstances, will acquire the status of permanent workers.

It is very important to highlight that this rule applies:

• Whether the contracts were signed directly with the company or through a Empresa de Trabajo Temporal (ETT / Temporary Employment Agency).
• Whether it is for the same job position or for different positions within the same company or business group.
• Even in cases of business succession or subrogation in accordance with the law.

Permanency Due to Legal Non-Compliance (Article 15.4 of the ET)

You do not only become a permanent employee through the mere passage of time and the chaining of contracts. Article 15.4 of the ET determines that individuals who have not been registered with the Seguridad Social (Social Security) once a period equal to the legally established trial period (período de prueba) has elapsed will acquire permanent status.

Likewise, temporary contracts concluded in fraude de ley (fraud of law)—for example, signing a contract due to production circumstances when in reality you are performing structural and permanent tasks of the company—will be considered indefinite.

Practical Examples of Chaining Contracts

To better understand how these rules and figures apply in practice, let us analyze two common scenarios in Spanish companies.

Example 1: Carlos's Case (Exceeding the 18-Month Limit Within a 24-Month Window)

Carlos is hired by a large supermarket chain through temporary contracts due to production circumstances because of fluctuations in demand. His contract history is as follows:

1. First contract: From January 1, 2022 to December 31, 2022 (12 months).
2. Unemployment period: January and February 2023.
3. Second contract: From March 1, 2023 to October 31, 2023 (8 months).

Analysis of Carlos's case:

• Reference period: From the start of the first contract (January 1, 2022) to the end of the second (October 31, 2023), 22 months have elapsed (well within the 24-month limit set by law).
• Total time worked: Carlos has accumulated 20 months of actual work (12 months from the first + 8 months from the second).
• Result: Since 20 months exceeds the legal limit of 18 months within a timeframe of less than 24 months, Carlos legally became a permanent worker from the moment he completed his 18th month of service (i.e., midway through his second contract).

Example 2: Elena's Case (Contract in Fraud of Law Without Long-Term Chaining)

Elena is hired by a consulting firm on February 1, 2023 through a single temporary contract due to production circumstances with a duration of 6 months to "support daily office accounting tasks." Her salary is €1,800 gross per month.

At the end of the 6 months, on July 31, 2023, the company informs her that her contract is expiring and offers her a temporary contract termination compensation (indemnización por fin de contrato temporal) of 12 days per year worked.

Analysis of Elena's case:

• Even though Elena has not chained multiple contracts or exceeded 18 months, the daily accounting tasks of an office are structural and permanent; they do not correspond to an occasional and unpredictable increase in business activity.
• Result: The contract is considered to have been concluded in fraude de ley. Elena is, from day one, a permanent employee. Her dismissal at the end of the contract is not a simple "expiration of a temporary contract," but an unfair dismissal (despido improcedente).
• Elena's compensation figures:
• If she accepts the end of the temporary contract: She would be entitled to 12 days of salary per year of service. For 6 months, the compensation would be 6 days of salary, equivalent to €360.
• If she claims and the dismissal is declared unfair (despido improcedente): She is entitled to 33 days per year worked. For 6 months, the compensation rises to 16.5 days of salary, which equals €990 (almost triple), in addition to the option of reinstatement if agreed upon or if she belongs to certain protected groups.

Step-by-Step Practical Steps to Claim Your Permanent Status

If you believe you meet the requirements of Article 15.5 of the ET or that your temporary contract is in fraude de ley, you should follow these steps to regularize your situation:

Step 1: Gather All Employment Documentation

Collect all employment contracts you have signed with the company (or companies of the same group), payslips (nóminas) for the entire period, an updated work history report (informe de vida laboral, which you can download from the Social Security Electronic Office), and any written communication (emails, WhatsApp) proving your duties and the continuity of your employment relationship.

Step 2: Request the Certificate of Permanency from the Company

In accordance with Article 15.5 of the ET, the company must provide you with a document certifying your new status as a permanent worker within 10 business days from the date the requirements are met. You can request this formally in writing (via burofax—a secure Spanish postal method—or a hand-delivered letter with a stamped copy).

Step 3: Request the Certificate from the Public Employment Service (SEPE)

If the company ignores your request or refuses to deliver the document, you can contact the Servicio Público de Empleo Estatal (SEPE / State Public Employment Service). After verifying your social security contribution data, SEPE will notify the Inspección de Trabajo y Seguridad Social (Labor and Social Security Inspectorate) so they can act on their own initiative.

Step 4: File a Complaint with the Labor Inspectorate

You can file a formal complaint with the Inspección de Trabajo y Seguridad Social of your province. An inspector will visit the company or request documentation. If they find irregular contract chaining, they will force the company to register you as a permanent employee, and they can penalize the business with serious fines ranging from €1,000 to €10,000 for each affected worker.

Step 5: The Judicial Route (Conciliation Paperwork and Lawsuit)

If the employment relationship is terminated (for example, they do not renew your temporary contract, claiming the end of the project or service), you have an urgent limitation period (plazo de caducidad) of 20 business days to file a conciliation petition (papeleta de conciliación) before your Autonomous Community's mediation service (SMAC, UMAC, etc.). If no agreement is reached during the conciliation act, you must file a lawsuit before the Social Court (Juzgado de lo Social) requesting that your employment relationship be declared permanent and your dismissal declared unfair.

Mistakes You Must Avoid

• Signing settlement agreements with releasing effects without reviewing them: If the company terminates your temporary contract and offers you a settlement agreement (finiquito), do not sign with "conforme" (agree) if you intend to claim. Always write "No conforme" (Not in agreement) next to your signature and write the date of the day you are signing.
• Letting legal deadlines pass: The deadline to challenge a dismissal or contract termination is only 20 business days (Saturdays, Sundays, and public holidays do not count). If you let this deadline pass, you will lose the right to challenge the employer's decision, even if you are in the right.
• Believing that changing job positions or ETTs "resets" the clock: Many companies mistakenly believe that changing a worker's professional category or hiring them for a month through an ETT interrupts the calculation of the 18 months. The law is clear: all contracts within the group of companies and ETTs are added together for the total calculation.
• Confusing substitution contracts with contracts due to production circumstances: The chaining limits of Article 15.5 of the ET apply specifically to contracts due to production circumstances. Substitution contracts (contratos de sustitución, used to cover maternity leave, temporary disability, etc.) have their own duration rules and do not count in the same way toward this automatic permanency limit, unless fraud of law is committed regarding their purpose.

Frequently Asked Questions (FAQ)

What happens if there are gaps between one temporary contract and another?

Temporary gaps (colloquially known as "paros") do not prevent contracts from being added together if they fall within the 24-month window. Supreme Court jurisprudence has determined that short breaks (usually less than 1 to 3 months, depending on the case) do not break the "unity of the employment relationship." Therefore, the company cannot avoid an employee becoming permanent by de-registering them for a few days between contracts.

Does this rule apply if I have worked for different companies within the same group?

Yes, absolutely. Article 15.5 of the ET expressly mentions that the calculation is based on work performed for "the same company or group of companies." If you have been hired by entities with different names but which belong to the same business conglomerate, those periods will be added together to reach the 18-month limit.

What compensation am I entitled to if I am dismissed while on a fraudulent temporary contract?

If your temporary contract was in fraude de ley or you had exceeded the chaining limits, your dismissal must be classified as unfair (despido improcedente). This means that instead of the temporary contract termination compensation of 12 days per year, you are entitled to an unfair dismissal compensation of 33 days of salary per year of service, up to a maximum of 24 monthly payments, for the entire time you worked since the first contract in the chain.

Does the labor reform affect contracts signed before it came into force?

The labor reform introduced specific transitional provisions. For contracts in force before the full reform, the previous rules of 24 months of work within a 30-month period apply. However, for all temporary contracts entered into from March 30, 2022 onward, the new limit of 18 months within a 24-month period is strictly applied.

Summary

• Strict time limit: You become a permanent employee if you accumulate more than 18 months of temporary contracts within a 24-month period.
• Broad scope of application: The rule applies even if you change job positions within the same company or if the contracts were made through different companies in the same group or ETTs.
• Right to claim in writing: You have the right to demand a certificate of permanency from the company within 10 business days of meeting the requirements.
• Reaction period for dismissal: If the company decides to terminate your temporary contract fraudulently, you have a period of 20 business days to challenge the decision in court.
• Financial consequence: The recognition of permanent status increases your severance pay from 12 days per year (end of temporary contract) to 33 days per year (unfair dismissal).

General legal information, not personalised legal advice. For your specific situation, ask your question for free at AbogadoAI — answers grounded in Spanish law (BOE), in English.

This is general information, not legal advice. Verify on the BOE or consult a lawyer for your specific case.