Comparative Guide: Internship Agreement vs. Employment Contract

If you are taking your first steps in the working world or looking to recruit young talent to your company, you have certainly come across these two terms which, although they sound similar, are completely different worlds: the internship agreement (convenio de prácticas) and the internship contract (contrato de prácticas, now called training contract).

Don't panic! In this article, we are going to break down what each one is, their key differences, and what they entail at a legal, economic, and professional level.

🎓 The Internship Agreement

This is the formula designed if you are still a student. The internship agreement (officially "educational cooperation agreement") is not an employment relationship, but an academic one. Its main objective is for the student to apply what they have learnt in the classroom to a real work environment.

There are two types of internships:

• Curricular internships: these are those included within the study programme, can be compulsory or voluntary, and have the distinct feature that they are validated for credits.

• Extracurricular internships: these are voluntary, and can be undertaken to complement the study programme and start gaining work experience, but they are not compulsory nor are they validated for credits.

In both cases, the following applies:

1. Three-party agreement: The agreement must be signed by the three parties; the university or study centre, the company, and the student. 

2. Remuneration: There is no salary as such, but a "study grant". They can be paid or unpaid, although the trend is moving towards them being paid.

3. Social Security: Note this down! Since January 2024, all interns with an agreement must contribute to Social Security, whether the internship is paid or unpaid.

4. Rights: It does not constitute an employment contract, nor does the Workers' Statute apply in its entirety, as its main objective is learning. The time contributed counts towards retirement, but it does not entitle you to claim unemployment benefits.

💼 The Internship Contract

This is the appropriate formula when studies have already been completed to consolidate work experience, or for young people to receive theoretical and practical training in an integrated and coordinated manner with the training activity. Forget the word intern. Here you have an employment contract with all the force of the law, protected by the Workers' Statute. After the latest labour reform, its technical name has changed to training contract (contrato formativo), therefore, it is an employment relationship and is mainly divided into two types:

• Training contract for obtaining professional practice: designed for those who already have their qualification (university, vocational training, or certificate of professionalism) and are looking for their first real experience working in their speciality.

• Alternating training contract: designed to combine paid work with studies (maximum for young people aged 30).

In both cases, the following applies:

1. Two-party agreement: The contract must be signed by the two parties; the company and the worker. 

2. Remuneration: Yes, there is a real salary and compulsory remuneration. It will be set by the company's Collective Agreement and can never be lower than the Minimum Interprofessional Wage (SMI) in proportion to the hours you work.

3. Social Security: Of course, as it is a contract for all purposes, the employee must be registered with Social Security.

4. Rights: You have the right to paid holidays, benefits and, of course, the right to unemployment benefit when the contract ends.

5. Benefits for the company: Notable are the significant reductions in Social Security contributions for the duration of the contract, as well as additional financial incentives that the company can access if it decides to convert the contract into a permanent one upon completion.

⚖️ Comparative Table: Main Differences

Below, you can view the differences between the internship agreement and the internship contract:

🌍 If You're a Foreigner, This Might Interest You!

At Traam we have already launched the procedure for residence authorisation for internships for foreigners who want to gain professional experience in Spain. However, you must take your situation into account:

• If you have recently graduated (inside or outside Spain): If you have obtained a higher education degree (at least a bachelor's degree) in the last two years, you can apply for this type of residence by signing a training contract for obtaining professional practice.

• If you are a foreign student in Spain and are finishing your studies: You can apply for this residence based on an internship agreement if the educational institution allows it (specifically extracurricular, since curricular internships are already covered by your study permit), or also by signing a training contract.

⭐️ Traam can help you manage your immigration procedures, and obtain a residence permit for internships. Trust us to make managing your permit an easier and faster experience, ensuring that there are no mistakes in your application. If you have any questions, you can contact us and we will do our best to help you.