Advantages and disadvantages of temporary and training contracts

Temporary and training contracts have become a vital recruitment tool. Especially in a scenario where the youth unemployment rate is high. These contracts offer both employers and workers a series of advantages and disadvantages that are essential to know.

This type of contract responds to work needs that are temporary in the company, for example, a temporary increase in the volume of work, replacing a worker on sick leave, hiring for a specific project, among others.

There are two types of contract in this category:

• The training and apprenticeship contract and the traineeship contract.
• The training and apprenticeship contract combines paid work in a company with job-related training.

The training and apprenticeship contract is to promote the integration into the labour market and training of young people who lack the professional qualifications required to obtain an employment contract.

As for the internship contract, this is for young people who have an official university qualification or an intermediate or higher vocational training qualification or certificates of professionalism, among others. With this contract, the employee works while acquiring professional practice appropriate to the level of studies.

Advantages and disadvantages of temporary contracts

The main advantages include:

• It allows the employer to deal with occasional peaks in work without having to permanently expand its workforce.
• In addition, it can be convenient for the worker, as he/she can gain experience in different areas and sectors.

However, this type of contract also has some drawbacks:

• The job instability that comes with it can make it difficult for the worker to plan for the long term.
• High staff turnover can affect the company’s productivity and lead to a loss of knowledge and experience.
• Problems of demotivation and lack of commitment on the part of the employee may arise if he/she perceives that he/she has no future prospects in the company.

Advantages and disadvantages of training contracts

Some of the advantages are that:

• They allow young people to gain a first work experience while continuing their training.
• For companies, these contracts can be an effective way to attract talented young people and train them according to the company’s needs.

However, there are also some disadvantages of training contracts to consider:

• These contracts are often unattractive to young people because the pay is lower than that of regular contracts.
• They tend to create uncertainty among young workers, as the employment future after the end of these contracts is uncertain.
• There can be a tendency for companies to abuse these contracts simply to get cheap labour.
  

If you have any doubts about this issue, please do not hesitate to contact us, by telephone to Paula Pablos Torrent or by e-mail to ppt@btsasociados.com, we will be delighted to help you.