Spanish government announces agreement for the labor reform
Labor Alert Spain
Confirmation of agreement between main industrial relations actors for what has been called a "major structural reform of the labor market".
Today, December 23, the government published a press release reporting that it has reached an agreement with the main actors in industrial relations (employer associations and the unions) to implement the labor reform that they have been negotiating over recent weeks.
Below are some of main new pieces of legislation in the imminent labor reform:
- The rules on temporary contracts are amended: the agreement reinforces the causality of temporary contracts and increases the penalties for irregular use of temporary contracts.
- Changes are made to training contract.
- It reinstates automatic extension of collective labor agreements indefinitely and does away with the priority application of pay terms in the company agreement. Plus it guarantees the rights of subcontracted individuals.
- Along with setting out the so called “RED” mechanism for job flexibility and stability to confront cyclical or sectoral crises and avoid dismissals.
Over the coming days the final wording of the labor reform, following its approved by the Council of Ministers, is expected to be published in the Official Gazette. The Garrigues Labor and Employment Department will then report on the main elements of the legislation in a new publication.
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