Discontinuous fixed contracts have become a central topic in discussions about how the labor market is changing. This kind of contract has expanded in recent months and is now a staple in debates about labor reform. It is presented as a middle ground between permanent full-time work and temporary arrangements, offering more security for the worker than a purely temporary role while not granting all the guarantees of a standard permanent contract because the worker may be inactive for parts of the week or the year. The term “discontinuous fixed” signals this seasonal pattern. An evaluation by public bodies noted that this contract can feel unsecured and that its accounting can influence unemployment data. How exactly does the rise of intermittent fixed employment impact employment statistics and unemployment figures?
What is a discontinuous fixed contract?
The notion of a discontinuous fixed contract is not new. It has existed in Spanish labor law for decades. A typical definition describes an arrangement created to perform seasonal or cyclic tasks tied to production or to works that are intermittent yet ongoing, with execution that is definite, ongoing, or indefinite, as described in the labor statute.
Recent labor reforms limit the use of temporary hires and aim to steer some of that work toward more stable, non-temporary arrangements. To gauge the extent of this practice, official data cover the period after the reform took effect, with thousands of such contracts recorded. In a prior period, comparable figures were far lower.
How does this type of contract work in practice? A worker can have an annual contract, but the employer calls them in only during peak activity or high demand. The job can last ten months or less within a year, and there is no fixed minimum or maximum. By nature, this contract is dynamic and statistically ambiguous because the worker never truly leaves the company. The employee is effectively in a state of hibernation and must be recalled each year. If the employer does not recall them, the worker may be dismissed with appropriate compensation. This mix of ambiguity helps explain why there has been a noticeable rise in uncertain contracts in recent months.
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Until recently, the discontinuous fixed model has been used mainly in roles such as restaurant service staff or hotel workers. Hotels maintained a year‑round core team, but during winter or summer peaks they hired additional intermittent workers who were already familiar with the business. These workers did not contribute during slow periods, yet the employer was obliged to call them back when demand rose. Notice requirements and minimum working time for these arrangements are negotiated with the employer.
Is an uninterrupted line considered stopped when it is not working?
Not exactly. Official unemployment status requires two conditions: being unable to find a job and being registered as a job seeker with the relevant public employment service. Some job seekers are not registered and do not appear in the unemployment statistics. As a result, data from the active population surveys can differ from the figures reported by the public employment service. A person who holds a permanent contract and remains formally employed is not counted as unemployed, even if the company’s needs change and they are laid off with compensation. If a worker remains technically employed but not active, their contribution to social security can pause during inactive periods, which can affect monthly employment statistics.
When activity resumes, contributions resume and the person reappears in monthly data. If periods of inactivity are long, a worker might shift in and out of the regional or national statistics depending on how the register is kept, especially for project-based or seasonal work.
Why are discontinuous arrangements a matter of policy now?
The counting method for unemployment has followed a long-standing framework. Public employment services and social security statistics have used the established series for many years, and reforms have not always altered that baseline. Critics have argued that the government’s approach can obscure trends by not counting certain permanent workers as unemployed when they are not actively needed. This debate centers on whether the reforms truly change how workers move between active engagement and inactivity.
The heart of the controversy is that this hiring pattern was once rare and now has become more common, raising questions about how many people are genuinely inactive versus simply awaiting recall. The lack of a formal, centralized register for all continuously employed workers makes it harder to judge the true weight of this group within the labor market.
Could the rise in discontinuous contracts affect unemployment data?
It can influence figures, though not always in a direct way. Today, workers who previously held intermittent temporary roles might stay linked to an employer even when not actively employed, altering how unemployment and employment are counted. If a worker is not employed, they may not be listed as active, which can blur the lines between employment and unemployment in official statistics. The guarantee of recall and potential benefits in the event of dismissal can change incentives and affect how the workforce is classified at any given time.
Some discontinuous arrangements may reduce the number of people appearing on unemployment rosters, especially when recall is frequent or when workers shift between short spells of work rather than long periods of inactivity. Conversely, if recall falls away, the worker might effectively disappear from active employee lists while still maintaining an employment relationship. This dynamic helps explain shifts in the overall unemployment picture observed in recent data.
Regional trends also matter. In some areas, the share of workers who cease to be registered as unemployed grows because they secure work, while in others the same workers might not be counted as unemployed if they remain linked to a company through a discontinuous contract. The net effect is a nuanced impact on the unemployment trajectory, even as the broader labor market shows inertia in adjustment to new patterns.