Understand and Comply with the LGD in Spain
What is the LGD and which companies are obliged to comply with it?
The LGD is the Spanish General Law on the Rights of People with Disabilities and their Social Inclusion and replaces the old LISMI. It is regulated by Royal Legislative Decree 1/2013 and establishes that all public and private companies with a workforce of 50 or more workers have the legal obligation that at least 2% of their employees are people with a disability certificate equal to or greater than 33%.
The calculation affects the company as a whole – all workplaces under the same tax ID number – and includes both permanent and temporary contracts, full-time and part-time. Workers assigned by ETT also count, as do its own staff.
What happens if I can’t cover the 2% fee with direct contracting?
If you prove that you cannot comply with the 2% quota through contracting, the law provides for a specific mechanism for substitute compliance, which are the Alternative Measures, regulated by Royal Decree 364/2005 and by the specific regional regulations of each community.
To use these measures, it is necessary to obtain from the competent Administration a Declaration of Exceptionality, which administratively recognizes that the company is in an objective situation of hiring difficulty.
The Declaration of Exceptionality is granted in two cases:
- Offers: the company has published real vacancies in the corresponding Public Employment Service and it has not been able to refer candidates with disabilities to cover its offers.
- Causes: the company has submitted documentation and evidence that there are productive, organizational, technical or economic reasons that make it particularly difficult for people with disabilities to join.
What is the Certificate of Exceptionality and why is it mandatory?
The certificate of exceptionality is the prior and necessary administrative document to be able to apply alternative measures. It must be requested before making a donation or buying from a Special Work Centre (CEE) or a self-employed person with a disability. This certificate is valid for 3 years and justifies that the company has not been able to comply with direct hiring due to:
- Lack of profiles: When the job offers processed before the SEPE or regional services are deserted.
- Organizational or technical causes: Alleging reasons that hinder the incorporation of people with disabilities into the usual activity.
How long does it take to obtain a certificate of exceptionality?
The maximum legal period for resolution from the date of submission and registration of all mandatory documentation is 2 months. If the administration does not respond within this period, the request is considered approved by positive administrative silence. In practice, the entire process – including the preparation of documentation – can take between 2 and 6 months, depending on the autonomous community and the complexity of the case. The application is submitted electronically.
How long is the Certificate of Exceptionality valid?
The certificate of exceptionality is valid for 3 years. The validity begins, in most communities, from the date of the favorable resolution. In Catalonia, it is applied by calendar year. At the end of the period, if the company still does not reach the 2% quota, it must initiate a new file. It is important to bear in mind that the SEPE has announced a stricter audit of renewals based on organizational or productive causes (route 2), so it is recommended to re-analyze the real possibilities of compliance through direct contracting on an annual basis and especially at the end of the validity of the certificate of exceptionality. In any case, if it is necessary to reapply for this certificate, it will be very important to accompany any new application with updated and solid evidence of the real and objective impossibility of direct compliance.
To which body should I address my request for exceptionality: the SEPE or my autonomous community?
It depends on how your personnel are distributed. If 85% or more of your workers are concentrated in a single autonomous community, the regional employment service of that community is the responsible body. If you have branches in several communities and none represents the 85% of the workforce, the application is addressed to the State Public Employment Service (SEPE).
What documentation do I need to submit the application for exceptionality?
The procedure varies according to the autonomous community, but generally requires:
- The calculation of the workforce and the data of people with disabilities currently hired.
- Accreditation of the case that justifies the impossibility of hiring: if it is via offers, the certificates of negative management of the job offers presented; if it is via causes, an explanatory report of the organizational, productive or technical reasons.
- The proposal of alternative measures with a forecast of amounts and data of the suppliers or entities involved.
My collective bargaining agreement establishes a quota of more than 2%. Can I apply for the exceptionality for this additional percentage?
Yes. The company must report on the applicable collective bargaining agreement and declare the reservation fee that corresponds to it. This information must be included in the application, although standard forms do not always allow it to be reflected directly.
Once the Declaration of Exceptionality has been obtained, is there any follow-up to be carried out during the 3 years of validity?
Yes. The file requires active maintenance throughout its period of validity. The company must submit an annual justification report with the workforce data, the people with disabilities hired, and the alternative measures applied. It must also present, in the first quarter of each year, the communication of positions occupied by people with disabilities. In Catalonia, in addition, any variation with respect to the authorized person – both in the number of people not being hired as in the supplier or organization – must be reported to the administration as soon as it occurs.
What happens if, during the validity of an exceptional case, my workforce changes or I hire people with disabilities?
If you hire people with disabilities while your Declaration of Exceptionality is in force, you must communicate this in order to proportionally adjust the amount you have to allocate to alternative measures. The deadlines and procedure vary: some communities require immediate communication, while the SEPE and other administrations allow this to be reflected in the annual report.
A worker has just informed us that he has had a disability certificate for years. How does this affect our calculation of 2%?
A person with a disability can be counted towards the 2% reservation fee for positions for people with disabilities from the date of the official resolution of their degree of disability, even if they have subsequently notified the company. The company must ask the employee for the corresponding accrediting document, without the need to know the specific diagnosis or any other health data.
We are a group of companies. Can we jointly manage compliance with the LGD?
No. The regulations do not recognize the concept of a group of companies for the purposes of complying with the LGD. Each company – each NIF – must apply for its own Declaration of Exceptionality, calculate its own reserve quota and individually justify the alternative measures it applies. It is not possible to distribute the expenses among different companies in the group or calculate the workforce together.
What penalties does my company face if it fails to comply with the LGD?
Failure to comply with the 2% reserve fee is considered a serious infraction according to the LISOS (Law on Infractions and Sanctions in the Social Order). Fines can range from €751 to €7,500, but other risks must also be considered, such as the loss of public aid and bonuses, the prohibition of contracting with the Public Administration for a period of up to two years or reputational risks.
What compliance options do Alternative Measures offer?
The alternative measures allow compliance with the LGD without direct contracting. The current legislation defines four modalities:
- Donation to a non-profit organization for programs that promote the employment of people with disabilities.
- Contract with a self-employed worker with a disability for the acquisition of goods and services.
- Contract with a Special Work Centre (CEE) for the acquisition of goods or services.
- Employment enclave, through a contract with a CEE for a team of its workers, to carry out part of the company’s activity in its facilities.
How to calculate the amount expected to be allocated to Alternative Measures within the framework of the LGD?
The reference amount is the annual IPREM (Public Indicator of Income with Multiple Effects)*. The calculation is made for each person with a disability who has ceased to be hired to cover the 2% fee:
- For donations to entities accredited as recipients of alternative measures: the annual amount is equivalent to 1.5 times the annual IPREM per person who has not contracted.
- For purchases of services or products from CEE or self-employed workers with disabilities: the annual amount is equivalent to 3 times the annual IPREM per person who is no longer employed.
The application of IPREM payments and the treatment of VAT vary depending on who administers the file: for exceptions presented to the SEPE, the amount of the alternative measure will be calculated by multiplying the IPREM by 12 payments. In the case of invoices to self-employed workers or CEE, VAT will be counted as part of the amount to be paid for each person who fails to contract. For the SOC in Catalonia, the calculation of the amount of the alternative measure will be obtained by multiplying the IPREM by 14 payments and it is not allowed to include VAT in this amount. For the Community of Madrid, the calculations will take into account 12 payments and VAT will not be included.
*The calculations are based on the current IPREM; At Prevent Foundation we help you to perform the updated calculation for the current year.
Are the authorized alternative measures binding? Can I change them?
They are not binding in the strict sense, but they do represent a formal commitment. If you wish to modify the approved measures – for example, changing supplier or modality (from purchase to donation, for example) – you must request it from the same body that authorized your Declaration of Exceptionality. Similarly, if you hire people with disabilities during the year, you must communicate this in order to recalculate the amount to be allocated proportionally.
How does the Prevent Foundation help companies in the management of LGD?
We are strategic partners in diversity and inclusion. We help companies navigate the bureaucracy of the certificate of exceptionality, calculate the economic equivalences of alternative measures and offer, free of charge, an employment intermediation service and talent pool. The aim is for any company that has the possibility to respect the spirit of the law and comply with the LGD through contracts. If it is impossible to do so, we accompany and advise you to ensure that compliance with the regulations is not just an administrative procedure, but an opportunity to improve social and corporate responsibility and the inclusive culture of the organization.
If an entity has processed my Declaration of Exceptionality, am I obliged to channel alternative measures through it?
No. Although the social entity may indicate this to you as an obligation or propose it to you, there is no regulatory obligation to link alternative measures to the entity that has advised or processed the file. The company can freely choose which entity or CEE allocates its measures, provided that it meets the established legal requirements.
What are the advantages of managing alternative measures with a foundation?
Donations allow the company to comply with LGD, while generating a direct and measurable social impact on the lives of people with disabilities. They allow disability to be integrated into the company’s overall strategy, not just regulatory compliance. In addition, the company decides where and how it wants to make an impact and has a very powerful tool to activate its teams and strengthen the inclusive culture through corporate volunteering.
At the operational level, the donation does not require adaptation of internal purchasing processes, does not affect operations or the supply chain, and is easy to manage.
Finally, donating to projects for the inclusion of people with disabilities in the workplace contributes to the generation of talent that the company will need in the future for compliance through hiring.
Can the Prevent Foundation receive the donation linked to alternative measures?
Yes. The Prevent Foundation is a legally accredited entity to receive and manage donations related to compliance with the LGD. We issue the donation certificate necessary for justification to the administration and offer technical support throughout the period of validity of the file to guarantee maximum legal certainty.
Does the Prevent Foundation’s job selection and intermediation service have any costs?
No. The consultancy and labor intermediation service is completely free for companies. We manage profiles from all sectors and levels of qualification, from operational to technical and managerial positions, and we carry out proactive research to fill vacancies that are difficult to fill.
What type of professional profiles does the Prevent Foundation manage?
We manage profiles from all sectors and levels of qualification, from operational positions to technical and managerial profiles, always ensuring the necessary skills. In addition, we carry out a proactive search to cover vacancies that are difficult to fill.
How can the Prevent Foundation help my company to be more inclusive beyond legal compliance?
Our approach transforms a legal obligation into a value strategy. We accompany companies through accessibility audits, awareness days to break down biases in teams and corporate volunteering programs. In this way, diversity ceases to be a number and becomes a strategic asset that improves the work environment and corporate reputation of the organization, aligning with sustainability objectives and ESG criteria.
Key Concepts of Employment Inclusion: Beyond Compliance with the LGD
Equity vs. Equality: What’s the Main Difference?
Equality: It consists of offering all employees the same resources and tools, without distinction.
Equity: It involves recognizing that each person has different circumstances and is provided with the exact resources they need to achieve the same level of opportunity as others.
What is the difference between Integration and Inclusion?
Integration: It is the presence of people with disabilities in a standardized company. The responsibility for adapting to the environment lies exclusively with the person with a disability.
Inclusion: The company has redesigned and adapted environments, processes, people, eliminating physical, digital and attitudinal barriers so that people with disabilities can contribute to their maximum potential. It is the active transformation of the organizational culture and the environment so that they welcome diversity in a natural way.
What is a Plan for the Emergence of Disability in the Company?
It is a strategy designed to create an environment of trust in which employees with disabilities can freely decide whether to communicate their situation to the company (not their diagnosis, or health data), allowing the organization to offer the necessary job adaptations and facilitating compliance with the 2% reservation fee.
An outcropping plan should not be considered in any case as the solution to compliance with the LGD, since the right to privacy of the person must always be respected. Instead, it is an inclusive culture tool that protects employee privacy and improves the management of diverse talent.
