According to the Employment Minister, 800 000 permanent employment contracts were signed in Spain since July 1st, 2006, thanks to various incentives proposed by the government. These figures broadly exceed the expectations of the government, which at the time of the launching of the « plan against precariousness », hoped to transform 500 000 temporary jobs into permanent ones before the end of the year. (Ref. 061144)
To encourage firms to make the step, the administration offers a bonus that can go up to an 800 euros reduction of social contributions each year, for three years, for every appointment. It also gives the right to a “lightened « dismissal – with a redundancy allowance of 33 days per year worked instead of the 45 usual days – for contracts in signed before December 31st, 2006. The Minister of Employment Jesus Caldera is now saying that the number of temporary contracts transformed into permanent
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