Dec 25

New Labour Reform

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Three days ago a Royal Decree-Law was passed aimed at implementing measures to promote labour stability and improve the employability of workers.

It is another initiative aimed at promoting a “flexible” labour market, giving companies a series of recruitment formulas that allow them to save on spending.

com-extHow will the labor reform benefit businesses and to what extent will it negatively affect the rights of workers?

Below, we summarize the most relevant reforms:

1) The possibility of part-time workers receiving overtime has been eliminated, promoting instead the legal figure of “supplementary hours.”

2) The trial period of fixed-term contracts may not exceed one month, unless a labour collective agreement provides for a greater time period. In any case, this period shall not exceed six months.

3) The age of children who can justify a reduction in working hours with proportional reduction of salary has been increased from eight to twelve years.

4) Temporary work companies will be able to give work experience employees to other companies

5)The transformation of these work experience contracts into fixed contracts will be subsidised.

6) The social security contribution rate is reduced by 1% for part-time employees.

Without a doubt, these measures will facilitate business activity. However, it is not so clear that the preference shown by the Government for part-time recruitment is well thought out, given the job instability that it cannot fail to produce. From this page, we will keep our readers informed on future developments…

Article by Mark Athos Franklin, English lawyer at the Rodriguez Bernal law firm.
 
For more articles on Business law or for more articles in English, click the links provided.
 
Antonio Pedro Rodríguez Bernal
At the Rodriguez Bernal law firm we have a department specialised in company law that is highly experienced in assisting clients from many countries and nationalities.
 
For more information about the services we offer on business issues, visit our web site or contact us directly.
Email: info@rodriguezbernal.com

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