On January 4th, 2023 the “Organic Law for Young Adults” (hereinafter the “Law”), was published in the Supplement to the Official Gazette 222.
Since March 2016 -by the Organic Law for Promoting Employment for Young Adults, the employment agreement for young adults was incorporated into the Labor Code and with it the obligation to hire young adults (art.34.1). The above-mentioned Law provided that the employment agreement for young adults may be concluded with individuals between 18 and 26 years old.
The Ministry of Labor by Ministerial Agreement MDT-2016-158 of August 2016, provided that employers with more than 50 employees are obliged to hire young adults in at least 10% of their annual payroll increase generated in each fiscal year. At the same time, it regulated that only those individuals who have not paid more than 6 months (continuous) of contributions to the Social Security under a full-time employment relationship shall be considered part of the young employees’ quota.
For more information on the obligation to hire young adults, please do not hesitate to contact our Director of Labor Practice, Marta Villagómez (firstname.lastname@example.org).