Spanish Work Reform 2014: Tarifa 100 Euros

En español. Auf Deutsch.

Eight days ago Royal Decree 3/2014, of the 28th of February, of urgent measures for the promotion of permanent workers was announced.

It was an unexpected, as a new work reform was nor planned for 2014. The Spanish Government seeks now to encourage the hiring of more permanent workers.

For this reason, it proposes setting the social insurance fee at only 100 euros for general risks.

However, the law has been on the receiving end of severe criticism, because of it’s unreasonable conditions, which are hard to meet on the part of employers. These include the following:

a) Permanent contracts must be made that increase the number of permanent workers in the company.

b) The company must maintain these conditions over the course of 36 months, starting with the date of the permanent employment contract. Every 12 months this situation will be checked.

c) The Act is not applicable to employees who have worked in the same company within the last 6 months.

If businesses meet these conditions, they will only have to pay the following amounts:

1) Full-time employment – 100 euro per month.

2) Part-time employment (75%) – 75 euro monthly.

3) Part-time employment (50%) – 50 euro per month.

It is also important to state that the law is applicable only to the contracts which were concluded during the period between 25.02.2014 and 31.12.2014.

It is laudable that the Government is still trying to strengthen the private sector in work matters, but the recent reform leaves much to be desired.