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Requirements for Insertion Companies (according to the Act of December, 20th 2002, Llei 27/2002 – Article 4)

Insertion Companies, in addition to being in accordance with Article 3, have to comply with the following requirements:

  1. All workers included in any of the situations described in section 2, will be provided, as part of their pathway to integration, with a personalized and assisted process of paid work; work-place based training; social and labour habituation; and, when needed, intervention services and social support measures that will eventually enable their integration in the ordinary labour market.
  2. Insertion Companies have to be promoted and owned by a promoting organization, in compliance with article 5. The participation has to consist of at least the 51% of the social capital for trading companies and cooperative societies. In case of workforce owned companies, the specific regulations of this type of companies apply.
  3. Insertion Companies need to have an annual average between a minimum of 30% and a maximum of 70% of workers in insertion process, without prejudice of the limits established by the specific recruitment regulations of cooperative societies and trading companies. Under no circumstances the number of workers in insertion process will be less than two. .
  4. Insertion Companies will not have their balances, result accounts, and assets linked to economic activities other than those that are the company’s purpose.
  5. Insertion Companies will invest, at least, 80% of their earnings or surpluses every financial year to improve or expand the production and insertion structures. If there is no need to expand or improve, or all of the percentage is not needed, the undrawn portion will be added to the company’s reserve fund with the purpose stipulated in this section.
  6. Insertion Companies have to be registered according to their legal form. They also need to be registered in the Registre Administratiu d’Empreses d’Inserció.
  7. Companies must not have canceled a job post for unfair dismissal the year before their application for qualification as an Insertion Company.