Deadline For Adapting To New Rules On Contracts Between The Economically Dependent Self-Employed Individual And Their Principle Client

6 August 2009

Royal Decree 197/2009 of February 23 went into effect on March 5, 2009 implementing Law 20/2007 of July 11 on the Self-employed Worker Statute and initiating a six month period during which all economically independent self-employed individuals (known by the Spanish acronym TRADE) who had signed a contract with their principle client prior to said law’s entrance into effect (that is, prior to October 12, 2007) and who fulfils the requirements to be considered a TRADE must adapt their contract, by mutual accord with the client, to the new rules regulating TRADES before September 5, 2009, unless either of the parties decides to rescind the contract within the aforementioned period.

In the event that the contract was signed following Law 20/2007’s entrance into effect, the contract must be adapted to the new regulations when the contract is signed.

As of today’s date, delays or non-compliance with the mandatory adaptation of the contacts for self-employed individuals who meet the requirements to be considered economically dependent will not incur any fines for either the client or the TRADE himself.

Finally, I would like to highlight some new rights for the TRADE which go hand in hand with this new regulation, such as, for example, the right to agree on the maximum shift length and the system of weekly rest periods and holidays and the right to receive compensation if the client terminates the contract without just cause, as well as the amount of said compensation.

For further information please contact Javier Echeburúa : [email protected]