Management of International Financial Services Question And Answers

Q1. What are various bonuses and deductions provided to Laura due to including disabled individuals?

From assessment, it has found that various bonuses and reductions will be provided to Laura for hiring individuals with a disability. In Spain, employers should hire 2% disabled workers that support in fulfilling their legal and ethical obligations. For hiring disabled employees, Laura will receive a bonus reduction under the Social Security contribution law. The bonus reduction will be decided based on the percentage of disability faced by the employees (Spain's reduction convention, 2023). Individuals below disability rate of 65% are liable to receive a 4500 Euros reduction. On the other side, in the case of exactly 65% disability amount of reduction accounts for 5100 Euros respectively. Employees with a disability rate of above 65% will get a reduction of 5700 Euros whose age is more than 45 years. Further, if Laura hired employees temporarily then she would be able to get a 50% discount on the Social Security contribution (Disability payment law in Spain, 2023). If Laura hires employees temporarily then there will be a tax reduction of 12000 for hiring individuals with 65% disability. Additionally, the hiring of such employees denotes the compliance of the organization with 1982 Social Integration for Disabled People Act and the 2003 Non-discrimination Act (Adams et al, 2019). Following are the various benefits and the grants that will be received by Laura for hiring employees with 37% disability:

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• A reduction of 4500 Euros as the disability percentage is below 65% from the social security contribution tax.
• The government in Spain is providing premises allowances for developing the organizational infrastructure for which Laura will be receiving 901 Euros.
• A reduction of 6000 Euros will be provided under the corporate tax (Aspachs et al, 2022).
• Further, a wage subsidy of 4000 Euros will be received.
• From the above analysis, it has been identified that Laura's decision to hire a disabled individual will provide them with various financial benefits indicating an optimum decision.

Work Contract

This agreement will disclose the terms and conditions of employment that have been agreed upon by both the employers and employees. This agreement indicates that both employers and employees have agreed to undertake only lawful activities and have mutual trust as well as confidence.

The Employment Agreement is entered on 1 August 2024 between Laura and John.

• Place of employment: The workplace of employment is 134, Barcelona.
• Trial period: The trial period of the job is 1.5 months during which employers have the right to terminate the employee's contract. Further, during this period, an employer is not liable for any security amount to the employee.

Duties and responsibilities:

• To maintain the calendar and schedule appointment
• Responsible for answering all the calls and greeting visitors
• Managing and scheduling all the meeting
• Drafting memos, emails, invoices, and other reports
• Managing petty cash book
• Fulfilling responsibility assigned by the superiors

Salary:

The employee will receive a basic salary of 1500 Euros which will be on the last day of each month. Further, accrual pay will be provided twice in the year on June 30 and 31 December.

Holidays

There will be 24 days of paid holiday within a year. Accordingly, 14 days of national and local holiday and 6 sick leaves will be allotted.

Timing

The working timing will be from 10 am to 6:30 Pm with a half-hour lunch and there will be five working days from Monday- to Friday.

Benefits:

• After the completion of 1.5 years an employee is entitled to 30 days of paid vacation holiday.
• An employee is allowed to remotely working 3 times within a month

Employers:

Graphic designer agency

134 Barcelona, xxx

Employee:

John Smith

123, EI Rastro Street

Madrid xxx

Difference in the employment contract of Spain and UK

Q2. Construct the Payroll of different employees within the graphic designer agency?

Salary of Administrative assistant

The below table indicates the salary of the administrative assistants within a month. The salary did not include the amount of accrual payment as it is assumed that amount calculated for the months other than June and December.

Salary of Visual designer

The above salary calculation includes the deduction of 14516 as he is married and has a child.

Official payroll of Administrative assistant

Q3. Severance of the administrative assistants till July 25

B) Comparison of leave condition of Spain as compare to UK

There is a huge difference between the leave policies of Spain as compared to UK. In Spain, an employee is entitled to get a national holiday for the nine and five days of local holidays. This indicates that 14 falls under the category of paid level to the employees (García-Pérez, Marinescu, and Vall Castello, 2019). Further, employee is provided with 30 days of paid leave if he continues to work in an organization for more than 1 year (Spain's Leave policy, 2024). The number of leave could be increased in Spain based on the employee's bargaining ability. During the time of termination or quitting of job, the workers are entitled to receive the amount instead of the time off. Whereas, in UK, workers are entitled to receive 28 days paid leave or 5.6 weeks holiday within a year. The 28 leaves are divided by 20 leaves and an additional eight days of leave are provided by the working time Regulations (UK's leave policy, 2024). These eight-day leaves indicate the statutory bank holiday that could be taken as per the individual's desires and requirements. The number of paid vacations is higher in Spain such as 22 days in comparison to UK (only 20 days approved). The number of bank holidays is high in Spain which is 14 days as compared to UK where it accounted for 8 days.

References

Books and Journals

• Adams, Z., Bishop, L., Deakin, S., Fenwick, C., Martinsson Garzelli, S., & Rusconi, G. (2019). The economic significance of laws relating to employment protection and different forms of employment: Analysis of a panel of 117 countries, 1990–2013. International Labour Review, 158(1), 1-35.
• Aspachs, O., Durante, R., Graziano, A., Mestres, J., Montalvo, J. G., & Reynal-Querol, M. (2022). Real-time inequality and the welfare state in motion: evidence from COVID-19 in Spain. Economic Policy, 37(109), 165-199.
• Damiani, M., Pompei, F., & Ricci, A. (2020). Labour shares, employment protection and unions in European economies. Socio-Economic Review, 18(4), 1001-1038.
• García-Pérez, J. I., Marinescu, I., & Vall Castello, J. (2019). Can fixed-term contracts put low skilled youth on a better career path? Evidence from Spain. The Economic Journal, 129(620), 1693-1730.

Online

• Disability payment law in Spain. 2023. Online. Available through: < https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/manuales-practicos/manual-especifico-irpf-2023-personas-anos/minimos/minimo-discapacidad.html#:~:text=The%20minimum%20for%20disability%20of,greater%20than%2065%25%20is%20proven.>
• Spain's Leave policy. 2024. Online. Available through: < https://ins-globalconsulting.com/news-post/labor-laws-in-spain/#:~:text=In%20addition%20to%20paid%20maternity,difficulties%20the%20child%20might%20face.>
• Spain's reduction convention. 2023. Online. Available through: < https://www.euroblind.org/convention/article-27/spain#:~:text=Employers%20who%20hire%20a%20disabled,to%203.907%20Euros%20per%20employee.>
• UK's employment contract law. 2023. Online. Available through: < https://www.gov.uk/employment-contracts-and-conditions#:~:text=Employees%20and%20employers%20must%20stick,between%20the%20employee%20and%20employer).>
• UK's leave policy. 2024. Online. Available through: < https://www.gov.uk/holiday-entitlement-rights>

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