What is the new labor reform about?

The new labor reform is a law that regulates the Spanish labor market and establishes new rules for the employment contract, dismissal, working hours, salary and working conditions. This reform aims to improve the competitiveness of the Spanish economy and reduce unemployment. The new labor reform will enter into force on January 1, 2019.

The Spanish labor reform of 2012 was a reform that introduced significant changes to the Spanish labor market. This reform was promoted by the government of Mariano Rajoy and approved by the Spanish Parliament in February 2012. The 2012 labor reform was criticized by many labor experts and unions, since it was considered that the changes introduced favored companies and not so much to the workers. The new labor reform aims to improve the competitiveness of the Spanish economy and reduce unemployment.

The new labor reform will enter into force on January 1, 2019 and will apply to all employment contracts entered into after that date. This reform has been promoted by the government of Pedro Sánchez and approved by the Spanish Parliament in September 2018. The 2018 labor reform was criticized by many labor experts and unions, since it was considered that the changes introduced favored companies and did not both the workers. The new labor reform aims to improve the competitiveness of the Spanish economy and reduce unemployment.

What does the 2022 labor reform propose?

The 2022 labor reform is an initiative of the Spanish government to improve the labor market and make it more competitive. The 2022 labor reform is an initiative of the Spanish government to improve the labor market and make it more competitive. This reform focuses on three main areas: making employment contracts more flexible, reducing labor costs, and simplifying labor regulations. The 2022 labor reform also establishes new measures to promote employment, training and teleworking. Likewise, new rules are established for the regulation of dismissals, wages and working hours.

Flexibility of employment contracts

The 2022 labor reform allows employment contracts to be more flexible. New contracting modalities are established, such as part-time contracts, training contracts and interim contracts. Likewise, new forms of work are established, such as teleworking and home work. New working hours modalities are also introduced, such as the split shift and the intensive shift.

Reduction of labor costs

The 2022 labor reform establishes a series of measures to reduce labor costs. A new salary scale is established, which establishes a minimum interprofessional salary of 1,000 euros gross per month. A new flat rate for social contributions is also established, which is 10% for self-employed workers and 20% for employees. Likewise, a new flat income tax rate is established, which is 15%.

Simplification of labor regulations

The 2022 labor reform simplifies labor regulations to make them more understandable and easy to apply. A new single employee registration system is established, which simplifies the hiring and firing process. A new wage settlement system is also established, which simplifies the calculation and payment of wages. Likewise, a new regulation on working hours is established, which simplifies the calculation and application of working hours.

What does the new labor reform do?

The new labor reform is a reform that focuses on reducing costs for companies. It is intended that companies can easily hire and fire, as well as modify the working conditions of their employees in a more flexible way . This is expected to reduce unemployment and increase productivity in Spain. The reform is being harshly criticized by the unions, since they believe that it will worsen the working conditions of the workers and that it will not reduce unemployment.

The labor reform establishes new conditions for dismissal, which will be easier and cheaper for companies. New forms of contracting are also established , such as part-time contracts and home work contracts . It is hoped that this will make it easier for companies to hire and there will be more work in Spain. However, the unions criticize this reform, since they believe that it will worsen the working conditions of the workers and that it will not reduce unemployment.

How are the temporary contracts with the new labor reform?

The new labor reform establishes a maximum of 24 months for temporary contracts, compared to the current 36 months. This means that, from now on, a worker may be temporarily hired for a maximum of 2 years. If this period is exceeded, the contract will automatically become an indefinite one.

In addition, the labor reform establishes that temporary workers will be entitled to receive compensation of 20 days per year worked, compared to the current 15. It also establishes that, in case of unfair dismissal, the worker will have the right to receive compensation of 45 days per year worked, compared to the current 33.

Finally, the labor reform establishes that temporary workers will have the right to access Social Security voluntarily, if they so wish. Until now, they only had access to Social Security if they were hired by a company that contributed to Social Security.

What are the main changes of the labor reform?

• The maximum daily working day is set at 12 hours, and the weekly, at 60 hours.
• Workers will have to face a 20% reduction in their salary in the event of unfair dismissal.
• Target dismissal becomes cheaper, which will be reduced by 45% in the case of companies with fewer than 50 workers, 40% in the case of companies with more than 250 workers, and 35% in other companies.
• Disciplinary dismissal is cheaper, which will be reduced by 45% in the case of companies with fewer than 50 workers, 40% in the case of companies with more than 250 workers, and 35% in other companies.
• The limit of compensation for unfair dismissal is raised, which will go from 33 days of salary per year worked to 45 days.
• The figure of null dismissal is introduced, which will be applicable in cases in which workers are dismissed for reasons prohibited by law, such as discrimination.
• Collective dismissals are regulated, which may be carried out without prior authorization from the labor authority in cases where there is a situation of economic, business or sectoral crisis.
• The obligation to retrain the worker to a suitable job in the event of a situation of permanent disability is established.
• Part-time work contracts are regulated, so that a minimum working day of 4 hours a day and 24 hours a week is established.
• Part-time work contracts are regulated, so that a minimum working day of 4 hours a day and 24 hours a week is established.
• The figure of the relief contract is introduced, which will be applicable in cases in which a situation of temporary disability or maternity/paternity occurs.

The new labor reform in Spain means important changes for workers and employers. The main novelties of the reform focus on employment contracts, unfair dismissal, the minimum wage, working hours and teleworking.

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