Mart will get from the government

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Accounting and Finance
Student Name
Date

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Question 1
Since 2008, the net worth taxable income for person with disability of less than 65 % was
set to 3,264 Euros. The administrative assistant lies in this bracket as the disability is quantified
to be 37%. The bonus that Mart will get from the government is an annual amount of 3.500
Euros. The government advance bonuses to the employers based on the disability level of the
employee. legislation on hiring person with disabilities has set the bonus to 3.500 for an
employee with a disability below 65% and between 4.100 Euros to 4.700 Euros when the
disability level is equal to or above 65%. Only women and workers above 45 years with a
disability superior or equal to 65% qualifies for a bonus of 4.700 Euros.1
What type of contract would do exposing its main characteristics?
An indefinite contract is deemed as a normal contract and attracts some government
incentives. In particular, since this is the only contract that Marta has issued to the administrative
consultant, then it follows that in the labor law this is a normal and indefinite contract. The
severance pay is an equivalent of 45 days salary for every year that an employee provides
services to the employer and the capping is done up-to a maximum of 42 months salary2. There
are no subsides offered with regard to social security and the government does not offer
additional financial incentives 3.
Prepare an employee contract of a person with disability in relation to Spanish regulation For
persons with disability

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The employment contract:
Language:
The contract is written in English though in ideal situation, it should be drafted in Spanish
Law and Jurisdiction
The employee works in Spain and as a result, Spain labor court laws applies in case there is an
employment related dispute
Expenses for the company
The company will make a social security-contribution of 32.5% of employee gross salary
Salary
The salary payable is subject to withholding tax of 6.4% in addition to Pay as You Earn
(PAYE)
Holidays
You will be entitled to a holiday equivalent to 30days or 23 working days and salary will be
paid normally during this period. In total there are 14 holidays in a year and authorities have
the freedom to transfer them to either Monday or Friday as they may deem it appropriate
Social Security coverage
Amounts contributed for social security purpose by both the employee and the employer
covers the following services:
 Maternity for 16 weeks
 Illness/incapacity, the employer pays salary normally but contribution is reviewed to
60% or 75 % depending on the period that an employee is unwell
Unemployment
The employee is entitled to unemployment payment for a period of 2 years from the
administrations if he/she has worked for 6 years and 1-year payment if worked for 3 years.
Retirement pension
Once you have worked for a period of 30 years, you are entitled to visit the administration and
seek for 100 % payment for your contribution
Other applicable terms as per Spanish labor act and collective agreements.
 The contract is confidential