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Highlights of the new labor reform

The Royal Decree Law was published in the BOE of December 30, 2021  Royal Decree-Law 32/2021, of December 28, on urgent measures for labor reform, the guarantee of stability in employment and the transformation of the labor market.or that modifies a series of regulations, among which the Workers' Statute, the law of infractions and sanctions of the social order and the General Law of Social Security stand out.

The first thing that catches our attention when we see the type of norm that regulates the labor reform is that it is a decree law, that is, a norm that is not approved following the normal procedure for drafting laws, in which Congress intervenes. and the Senate, but it is a norm approved by the Government for cases of “urgent need.” That is why after 30 days from its approval it has to pass the “filter” and be approved by Congress, and modifications may be introduced or even not be approved if it does not have the necessary support. 

The urgent need for approval is given, because Europe has offered us a series of economic aid if we fulfill a series of commitments, among which the labor reform stands out, in order to end the temporary nature of contracts and promote indefinite hiring. among other objectives, and that had to be completed before the end of the year, hence the urgency of the matter.

Next we are going to see what the labor reform basically consists of and we must take into account that a transitional period of 6 months is established for the gradual application of the standard: 

1.- HE power the permanent contract which is intended to be the general type of contract.

The temporary contract are reduced to two: 

a) The contract due to production circumstances (old eventual contract)

-Unforeseeable occasional increases, with a duration of 6 months (extendable to 12 by collective agreement)

-Cover foreseeable temporary occasions: Maximum 90 non-consecutive days a year

b) Contract to replace the worker who has a reserved job (old interim contract)

-The work of the substitute and the person replaced can be made compatible so that they become familiar with the position, with a maximum duration of 15 days.

The specific work or service contract disappears.

 The sanctions for fraudulent temporary hiring that will be imposed for each employee are toughened.

2. There are two types of training contracts

a) The alternating training contract that makes work and studies compatible, with a duration that can range from 3 months to 2 years

b) The contract to obtain a professional internship appropriate to the studies carried out. It cannot have been more than 3 years since the studies were completed. It lasts from 6 months to a maximum of 1 year, with a trial period of one month.

In both contracts the figure of the tutor is essential

3. Discontinuous fixed contracts

For carrying out seasonal or seasonal work. They can also be used for the execution of contracts that, being foreseeable, are part of the company's ordinary activity, or ETT. The “waiting” period is established at three months and is not considered dismissal nor does it give the right to compensation. 

4.-Fixed work contract

The worker can be reassigned to various works, relocated. In the event of termination, you would receive compensation equal to 7% of your salary.

5. Concatenation of contracts

The period in which a worker can overlap temporary contracts is reduced to 18 months in a period of 24 months. 

6.- Collective bargaining and collective agreements

Ultraactivity: Once the validity of a collective agreement ends, it is automatically extended until a new one is approved to replace it.

The sectoral agreement prevails over the company agreement with regard to salary and working hours.

8.-ERTES 

The measures to request them are made more flexible, since their use is preferred to avoid collective dismissals.

The ERTE figure is maintained due to force majeure and ERTES are created due to limitation or impediment.

9:- RED mechanism for flexibility and stabilization of employment

It is a type of ERTE or mechanism that the government has to approve in certain complicated cases, which consists of creating a fund to help companies protect jobs, facilitating cases of reduction of working hours or suspension of employment contracts. It can be of two types. 

Cyclic; due to macroeconomic situations, with a maximum duration of one year

Sectoral, with a maximum duration of one year and two extensions of six months each.

10.-In the field of Social Security 

-Hiring for a period of less than 30 days is penalized

-New employment sustainability benefit

11. The credit available for companies is increased to finance actions of the programmed action

12 Changes in the law of infractions and sanctions

Fines of up to €10,000 for each violation.

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