System in Spain

Summary

Although a quota system is in place, Spain has a high unemployment rate of people with disabilities compared to other nations in the European Union. This is also due to the high number of older people legally recognised as having a disability. Most people with disabilities find employment Special Employment Centres.

Incentives for employers are in place to encourage them to employ people with disabilities. In addition, people with disabilities may receive support for entrepreneurship and transition to the mainstream market.

The economic crisis has strained the financing of measures of social inclusion of people with disabilities and the Spanish government has put in place an emergency fund to counteract this.

General figures

8.5% or 3,847,900 people in Spain have a disability, the majority being females (60%). 58% of persons with disabilities are over 64.[1] 

In 2008, 3.8% of the working-age population aged between 20 and 64 received disability benefits in Spain. In 2007, Spain spent 1.2% of its GDP on disability and 1.1% on sickness programmes, marking a slight increase compared to the year 2000.

In Spain, only 35.7% of people with a disability are employed, compared to 71.1% of non-disabled people.[2] In 2001, 42% of employed persons with a disability were working in the open labour market including quotas, whereas 48% were engaged in sheltered employment.[3]

Special Employment Centres (SECs) have thus become one of the main sources of work for people with disabilities in Spain, providing employment for approximately 10% of people with disabilities in employment and of working age at the present time. According to figures from the National Statistics Institute (INE), this is estimated to be more than 666 900 people.

Legal Framework

The Spanish legal system contains numerous provisions seeking to prevent or eliminate direct and indirect discrimination against people with disabilities. The key measures leading to the current status enjoyed by people with disabilities in Spain are the following:

SPANISH CONSTITUTION OF 27 DECEMBER 1978 (ARTICLES 14, 9.2, 10 and 49). The key element is that the Constitution does not limit itself to recognizing formal equality, but also calls for public powers to take actions to make this equality real and effective, with explicit references to persons with disabilities.

LAW 13/1982 ON SOCIAL INTEGRATION OF PERSONS WITH DISABILITIES (LISMI). This law sets out a new conception of disability based on the real conditions of the person and their potential. Furthermore and among many other areas covered, the law provides for a quota system in the field of employment; the system was subsequently completed with the adoption of alternative measures for compliance with quotas when companies or the public administration are unable to do so.

1990 LAW ON NON-CONTRIBUTORY PENSIONS. It established for the first time in the Spanish legal system the individual right to a pension even when people have not contributed enough in national insurance payments or have never been in employment due to different circumstances. Consequently, this law is applicable to adults with disabilities, thus ensuring a minimum income and even enabling them to make this pension compatible with paid work when their salary is not above the limits set out in the regulations.

LAW 51/2003 OF 2 DECEMBER ON EQUAL OPPORTUNITIES, NON-DISCRIMINATION AND UNIVERSAL ACCESSIBILITY FOR PERSONS WITH DISABILITIES. This law is an extension of the 1982 Law on Social Integration of Persons with Disabilities as it introduces a number of updated disability-related concepts. It contains not only the concept of positive discrimination, but also recognises the need for “positive action” by public authorities and “equal opportunities” as an objective in all policies. It is significant to note that this law does not merely limit itself to declarations; it sets timelines, which must be met, to introduce universal accessibility in all spheres of social and economic life. 

LAW 39/2006 OF 14 DECEMBER. LAW TO PROMOTE PERSONAL AUTONOMY AND CARE FOR PERSONS WITH DISABILITIES IN SITUATIONS OF DEPENDENCY. This law may be the most important piece of legislation for all persons with more severe disabilities who require different types of personal and financial assistance to maintain an acceptable quality of life.  In Spain this law has been called the “fourth pillar of the Welfare State”, the others being the social security system, free and compulsory general education and universal health care. The so-called “Dependency Law” recognises a personal right to such assistance, and therefore compliance with it can be sought in courts of law. Public authorities, thus, are subject to its provisions and may not act in a discretionary manner when implementing it.

Support Measures for Employers

The following are the key support measures in the mainstream labour market set out according to the type of employment contract:

Mainstream Employment

Permanent Contract for Persons with Disabilities

1 - A subsidy of 4,000 € per full-time contract. If the employee with disabilities is a woman, this amount rises to 4,400 €. Furthermore, if the employee with disabilities belongs to one of the groups considered to be at greatest risk of social exclusion (intellectual disability, mental disability, cerebral palsy or with a legally-recognised disability of 65% or more), support is increased to 8,000 € for men and 8,400 € for women.

In addition, there are reduced social security rates amounting to a reduction of 4,500 € per annum for the entire duration of the contract, rising to 5,350 € per annum if the employee is a woman and 5,700 € per year if the employee is over 45 years old. The reduction is 5,100 € per year, if the employee has an intellectual or mental disability or cerebral palsy, or a level of disability equal or superior to 65%.

2 - Subsidy amounting to up to 1,800 € per employee to carry out adaptations and reasonable adjustments in the workplace and to remove barriers. Rebate amounting to 6,000 € per employee with disabilities on Corporate Income Tax for the tax period immediately prior to taking on the employee. Companies benefitting from this measure are legally obliged to employ the person for a minimum of 3 years.

Temporary Contract for the Promotion of Employment among Persons with Disabilities

Reduced social security payments of 3,500 € per year during the entire duration of the contract, increasing to 4,100 € per annum, if the employee has an intellectual or mental disability or cerebral palsy, or a level of disability equal or superior to 65%. The increased reduction rises to 4,700 € per annum when, in addition to the aforementioned criteria, the employee is over 45 years old or a woman.

Training Contract for Employees with Disabilities

Social security contributions are set by means of a single monthly payment that offers a 50% reduction of the employer's share. There is financial assistance to adapt the work place and provide personal health and safety protection equipment, when the contract is for 12 months or more. Employees benefit from the provisions for permanent contracts for persons with disabilities if the training contract is converted into a permanent contract, with an additional bonus of 500 € per annum for four years.

Interim Employment Contract to Replace Employees with Disabilities on Temporary Disability Leave

A 100% reduction in the company’s social security payments, including professional contingencies and joint collection contributions. Employees can also enjoy a subsidy to adapt the work place, provided the contract is for 12 months or more.

Internship Contract for Persons with Disabilities

This type of contract brings with it a 50% reduction in company social security payments for common contingencies in the case of full-time contracts. Furthermore, there is financial assistance to adapt the work place and provide personal health and safety protection equipment when the contract is for 12 months or more.

Supported Employment Programmes

In the field of supported employment, the following support measures exist to offset the costs associated with job creation:

·       6,600 € per annum for each employee with cerebral palsy, mental or intellectual disabilities and a legally recognised disability equal to or above 65%.
·       4,000 € per annum for each employee with cerebral palsy, mental or intellectual disabilities and a legally recognised disability between 33% and 65%.
·       2,500 € per annum for each employee with physical or sensory disability and a legally recognised disability equal to or above 65%. 

People who are deaf or have a legally recognised hearing disability of 33% or above are also beneficiaries of supported employment programme. They enjoy the same benefits as employees with physical or sensory disabilities and a legally recognised disability equal to or above 65%.

Special Employment Relationships of Workers in Special Employment Centres (SEC)

There is provision for a subsidy amounting to 12,000 € for each employee with a legally-recognised physical or sensory disability between 33% and 65% who is given a permanent contract, provided the percentage of employees with disabilities in the workforce is over 90%. The subsidy drops to 9,000 € per employee if the percentage of employees with disabilities in the workforce is between 70% and 90%.

Financial assistance per contract rises to 15,000 € per employee if that person belongs to one of the groups considered to be at greater risk of social exclusion and the percentage of employees with disabilities in the workforce is over 90%. If the percentage is between 70% and 90%, support decreases to 12,000 € per employee.

In addition to the mentioned measures, there is a 100% reduction on the company social security payment and a monthly subsidy per employee with disabilities of up to 50% of the Inter-professional Minimum Salary (IMS). Furthermore, there is provision for up to 1,800 € support per employee to adapt the workplace and remove barriers, and public subsidies are VAT-exempt. 

Non-profit SECs, which have been declared public utility centres and indispensible, may also be given assistance of up to 1,500 € per employee with disabilities in order to secure budget balance.

Up to 1,200 € per employee with disabilities on a permanent contract is made available to cover the salary and social security expenses of staff members of Professional Activities Support Units in Special Employment Centres.

Professional Activities Support Units are multi-professional teams that are part of the Personal and Social Adjustment Services in Special Employment Centres. By developing the functions and duties assigned to them, they help employees with disabilities to overcome the barriers, obstacles and difficulties they may face in these centres when they first take up a position there. The units also provide assistance to ensure employees with disabilities remain and make progress in their jobs.

Permanent Contract for People with Disabilities Moving from an Supported to Mainstream Employment

Collaborating companies that take on an employee from supported employment on a permanent contract shall be entitled to the same benefits as in the case of mainstream employment (see above), provided the same conditions are met, including those related to degree of disability.

Public Procurement

Public procurement services may include in their bid specification documents certain preferential clauses in the awarding of contracts for offers from companies employing people with disabilities in numbers that represent not less than 2% of the total workforce, as part of their technical competence characteristics.

Exemptions from the quota obligation

Public or private companies with 50 or more employees are obliged to provide employment to persons with disabilities amounting to at least 2% of their workforce. In exceptional circumstances, public and private companies may be partially or totally exempted from the obligation to employ people with disabilities through arrangements included in sector-specific collective bargaining agreements at state level and, if this is not the case, at a lower level; in the absence of both, the company may opt voluntarily to seek exemption, provided one of the alternative measures is put in place. Companies may apply to the competent public employment services for a declaration stating the exceptional circumstances before putting the alternative measures in place.

The exceptions to the requirement to set aside position for persons with disabilities are as follows:

·       When the position is not filled by a person with disabilities due to the competent public employment services being unable to offer candidates to take up the position due to their being no suitable jobseekers.
·       Due to questions related to productivity, organization, technical and economic factors which make it especially difficult to hire workers with disabilities in the company, when there are candidates and the company under the obligation is able to prove so.

Alternative measures

The alternative measures available to companies to meet their obligations in terms of employing persons with disabilities are as follows: 

·       Entering into a business or civil contract with a SEC or with a self-employed worker with disabilities, to supply raw materials, machinery, capital goods or any other type of goods needed for the ordinary running of the activities of the company choosing this measure.
·       Entering into a business or civil contract with a SEC or with a self-employed worker with disabilities, to supply external and accessory services for the normal purpose of the company.
·       Creating a work enclave, after entering into the corresponding contract with a SEC.
·       The annual amount of the previous measures must represent at least three times the established public indicator for each worker with disabilities not employed under the 2% quota.

·       Carrying out donations and sponsorship actions, provided they are of a monetary nature, to run job placement and job creation activities for people with disabilities, when the beneficiary of these actions is a foundation or a public interest association with, among others, the social objectives of professional training, work placement or job creation for people with disabilities in order to create jobs for them and allow their integration in the labour market.
The annual amount of this alternative measure must represent, at least, 1.5 times the annual public revenue indicator for each worker with disabilities not employed under the 2% quota.

Support Measures for People with Disabilities

Quota System

A quota system has been in use in Spain since 1982: Public or private companies with 50 or more employees are obliged to provide employment to persons with disabilities amounting to at least 2% of the number of jobs in their workforce. The compulsory quota system applies also in the public sector; public bodies and companies are therefore obliged to set aside 2% of jobs for people with disabilities or may opt for alternative measures, if it impossible for them to meet the compulsory quota.

The Public Administration has committed to a minimum quota of 5% subject to applicants passing selection procedures. Perhaps the more significant feature in the public sector is the possibility to reserve positions for people with disabilities, which appear in public calls for employment; in this respect and in general terms, public administrations generally set aside at least 5% of the posts offered to this end with the purpose of reaching the legal objective of 2% of the total workforce in the shortest possible time.

Equally, 3% of the positions available through entry examinations for the position of notary public and for the Spanish body of recorders of deeds and mercantile recorders are set aside for persons with disabilities.

Tax reduction

For the 2008 tax year, net income is reduced by 3,264 € per annum for taxpayers with disabilities who gain an income as active workers.  This reduction is 7,242 € per annum if they can prove the need for assistance from a third party, have reduced mobility or a legally-recognised disability equal or superior to 65%.
The minimum taxable income in the case of disability is the sum of the taxpayer’s minimum taxable income and the minimum taxable income of dependent children and relatives.
In general terms, for 2008 it amounted to 2,316 € or 7 038 €, if the claimant has a legally recognised disability equal to or above 65%. In 2008, the minimum rose by 2,316 € to include the costs of assistance if the taxpayer could demonstrate the need for assistance from a third party, reduced mobility or a legally-recognised disability equal or superior to 65%.
The withholding rate for payments towards personal income tax is subject to minimum limits in the following instances:
·       Contracts or labour relations inferior to one year: the rate will not be lower than 2%;
·       Special labour relations of a dependent character: the rate will not be lower than 15%.
These amounts are updated for each tax year. Furthermore, there are additional tax benefits or support for people with disabilities.

Promotion of inclusion in the workplace among persons with disabilities

There are several state measures to support entrepreneurship, self-employment and the joining co-operatives and companies run by the workforce as a working partner or business associate.

According to the current Spanish Employment Strategy, in the areas of self-employment and company creation the priority groups are young people, people over 45 years old, women and persons with disabilities.

Help is available in the following areas:

·       Setting oneself up as self-employed, joining a co-operative or workers’ partnership and creating a company;
·       Financial assistance for lending facilities;
·       Assistance for investments;
·       Technical assistance and support for management functions;
·       Training;
·       Assistance for market research and viability analysis.

Contrary to the situation in the past, the current employment strategy does not set out amounts at national level, and it is the responsibility of regional governments, which are autonomous communities, to determine the level of support provided in execution of their powers.

Although there are no provisions in the strategy, the reduction in payments to the specific system for self-employed persons are held to be maintained.

Employment in the supported and sheltered labour markets

Special Employment Centres (SEC)

According to the ‘Social Integration of Persons with Disabilities Act’, SEC are ‘centres which main objective is the performance of productive employment’ by people with disabilities. These centres ‘engage regularly in market operations and their purpose is to secure employment’ for people with disabilities. Furthermore, ‘for some of these people they provide support for a move towards mainstream employment’.

SEC have shown over almost two decades how effective they can be as a potential means of promoting employment for people with all types of disabilities, becoming even competitive and consolidated enterprises in their sector and offering their products and services on the market at competitive terms.

In general terms, the key features of SEC in Spain are the large number of people with disabilities in the workforce (according to law, over 70% of the workforce must have a disability) and the requirement that they secure permission to operate from the corresponding authorities.

Employment Enclaves

Work enclaves appeared as an innovative means of raising awareness among employers and companies of the potential that workers with disabilities have as efficient and competitive workers in a SEC, but in the framework of a normalized, mainstreamed job.

In this respect, work enclaves are regulated as a way to promote employment among people with disabilities.  A work enclave is understood to be a contractual arrangement between a company operating in the open labour market, the ‘collaborating company’ and a SEC, the aim being to enable a number of workers with disabilities from the SEC to be based temporarily in the premises of the collaborating company in order to perform work or provide services directly related to the latter’s ordinary business activity.

Work enclaves are situated therefore within the framework of the measures established and regulated as exceptional alternatives to meet the reserved employment quota for people with disabilities in order to include the new work enclave concept among them.

Such exceptional alternatives to meet the reserved employment quota for people with disabilities provide the opportunity - during a period of three months minimum and three years maximum (with the option to extend to six years if any of the employees with disabilities working in the enclave is given a permanent contract) - for a certain number of SEC workers to perform their work in a mainstream employment setting within a company. This enables those with the greatest potential to be employed directly by the company and facilitates the move towards mainstream employment.

Occupational Centres

Occupational Centres are places in which people with all types of severe disabilities perform activities, which are non work related (or may be pseudo-work) but are rather handicrafts or craftwork. Either because of the limitations they have due to their disabilities or multi-disabilities or, on occasions, due to overprotection by their families, these people with disabilities have not been able to join a SEC. The occupational centre is, however, a step on the road towards a job in that sector of the mainstream labour market that is more sensitive towards the specific problems facing this group or is more ‘permeable’.

Any activities carried out in these centres should, in this respect, make it possible (where feasible) for people with disabilities to develop work skills aimed at facilitating the move towards some type of employment, whether this be by joining a SEC or, in the best-case scenario, a company.

Supported employment

Supported employment is understood to be a series of activities in the field of assessment and tailored individual support on the job, provided by specifically trained job coaches. The aim is the facilitation of the social and labour adaptation of workers with disabilities facing particular difficulties in joining companies in the open labour market in conditions that are similar to other employees performing equivalent posts.

Supported employment measures are carried out within the framework of supported employment projects, which feature as a minimum the following: 

Personal evaluation, assessment and escort for the person with disabilities. For each employee a tailored adjustment programme to help that person adapt to the position is drawn up.

• Support in bringing together and facilitating mutual support among the employee benefitting from the supported employment programme and staff and employees in the company who will be working alongside the employee with disabilities.
• Support for the employee in developing social and community skills to be able to operate in the best possible manner in the employment setting.
• Specific training in the position for the employee with disabilities.
• Monitoring the employee and assessing success in their introduction to the position, the aim being to detect needs and avoid potential threats, risks and obstacles, which may undermine the goal remaining in the labour market both for the employee and the employer.
• Provide assessment services and information to the employer on the needs of the employee and the adaptation process to the post.

People who are deaf or have a hearing disability with a legally recognised disability of 33% or more may also be considered clients of supported employment programmes, and they shall enjoy the same conditions as employees with a physical or sensory disability equal to or above 65%. 

Finally, there are many training programmes aimed at equipping people with disabilities with the skills necessary to enable them to be in the best possible position when competing for a job in the private or public sector. Moreover, career guidance and labour mediation services are provided.

Financing

As consequence of the global crisis, Spanish employment, measured in terms of full-time equivalent job posts, decreased 7.1% during the second quarter of 2009, eight tenths more than that of the first quarter. This result indicates a decrease of almost 1.369 million net full-time jobs in one year. On analysis by type of activity, it was observed that all market activities, on an aggregate level, continued to register negative growth rates. The most pronounced rates continued to appear in construction, followed by services and industry services. Given that services and industry sectors groups have the largest number employees with disabilities, this group of workers is being significantly affected by the crisis.

Sheltered Workshops have been also affected by the crisis. There is evidence among the different Spanish regions of substantial reductions in monthly funding for these social economy enterprises, as well as reductions in hiring workers with disabilities. In order to reduce the negative impact of the global crisis on sheltered workshop, in June 2009 the Spanish Government, has approved an additional contribution of € 40 million for sheltered workshops, agreed by the Sectoral Conference on Labour at the initiative of the Ministry of Labour and Immigration. This increased the budget allocated to sheltered employment in 2009 is part of the emergency measures demanded by the office of the disability sector to alleviate the effects of the economic crisis.[4]

Credits

We would like to thank our member Grupo Fundosa for the support in providing information for this country profile.

[1] Instituto Nacional de Estadistica 2008: Disability, Independence and Dependenxy Situations Survey 2008. Accessed at http://www.ine.es/jaxi/menu.do?L=1&type=pcaxis&path=/t15/p418/a2007/avance/p01&file=pcaxis [13.8.2011]
[2] OECD 2010. Sickness, Disability and Work: Breaking the Barries. A Synthesis of findings across OECD countries.
[3] Shima, I., Zólyomi, Eszter and Zaidi, Asghar 2008: The Labour Market Situation of People with Disabilities in EU25. European Centre for Social Welfare Policy and Research. 
[4] Verdugo, M.A., Jenaro, C., Campo, M. 2009: Report on employment of disabled people in European countries. Spain. ANED.