2012 labour reforms in Spain.

Eduardo Rojo Torrecilla.

Labour Law and Social Security Professor. UAB.

www.eduardorojotorrecilla.es/

2012 Labour Reforms

1 International Congress Tourism & Law. 16th November 2012

http://www.eduardorojotorrecilla.es/

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The "most important“ labour reforms.

From Royal Decree-Law 3/2012 of 10th February to Law

3/2012 of 6th July.

Urgent measures for the reform of the labour market.

International Congress Tourism & Law. 16th November 2012

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Preamble of Act 3/2012 of 6th July.

Employers’ flexibility in managing the company's human

resources.

Stability of workers in employment and adequate levels of

social protection.

Reform that aims to satisfy "more and better the legitimate

interests of everyone“.


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Measures to promote workers’ employability.

Intermediation: Temporary employment agencies are permitted

to act as private job placement agencies.

Development of permanent contracts and other measures to

promote job creation.

New indefinite term contract of support for entrepreneurs

(companies with less tan 50 employees).Trial period of one year.


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Measures to promote internal flexibility within

companies as an alternative to job losses.

Disappearance of professional categories. Enhancing professional

groups.

Irregular distribution of working time in charge of the company

(10% annually).

More functional mobility.

More geographical mobility. More causal flexibility and non-

intervention by the labour authorities.


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Substantial changes to working conditions:

a) More flexibility in the modification causes. No link to a

measure to improve the organization of the company and

monitor the impact on workers.

b) Possible modifications of workday, time distribution of work,

organization of shift work, remuneration systems and rates of

pay, and systems of work and performance.


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Contract suspension or reduction of working hours for economic,

technical, organizational or productive reasons.

a) Disappearance of the authorization of the labour administrative

authority.

b) Support measures. Reductions in employer contributions to

Social Security. Replacement of unemployment benefits in the

event of subsequent termination of the contract for objective

reasons.


10

Collective bargaining.

a) Possible derogation of the sector/company collective agreement.

“Lift” Clause. Regulatory flexibility (eg. continuing decrease in the

level of income or sales for two consecutive quarters). Possible

final decision in the hands of a third party.

b) Priority given to agreements reached at a company level.

Priority over sector-wide agreements in a wide range of issues.

c) Expiration of the agreement after a year of negotiating a new one

without agreement. Application of the higher level agreement (if

one exists).


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Measures to promote the efficiency of the labor market

and reduce labour duality.

Termination of the employment contract.

a) Individual dismissal for objective reasons. Individual and not

collective absenteeism .

“Absences from work, even justified but intermittent, which

reaches 20% of the working days in two consecutive months,

provided that the total absences in the previous twelve months

reached five percent of the working days, or 25 % discontinuous at

four months within a period of twelve months. "


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b) Collective dismissal.

More causal flexibility (e.g.. persistent decrease in the level of

income or sales for three consecutive quarters, over the same

period in the previous year).

There is no need for administrative authorization for a collective

dismissal. The "judicialization of the labour reform."

Disappearance of the social plan. Outplacement plans in

companies with more than 50 employees.


13

Application of collective dismissal for economic, technical,

organizational or productive reasons in the public sector.

Labour personnel serving agencies and entities within the public

sector.

As part of the preventive and corrective mechanisms regulated in

the rules of budgetary stability and financial sustainability of

public administrations. Eg. supervening budgetary situation and

persistent failure to fund the public services concerned.

Persistent/Continuing = for three consecutive quarters.


Conclusion

1. Large employers’ unilateral power in setting working

conditions. Loss of importance of the employment contract as

an agreement between two parties.

2. Weakening the bargaining power of trade unions. The labour

reform weakens the constitutional right to collective

bargaining.


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Measures to support the extension of the period of

activity of fixed discontinous contract workers in the

tourism and hospitality sectors.

Companies, excluding those belonging to the public sector,

engaged in activities falling under the tourism and hospitality

sectors...

… generating productive activity ... in the months of March and

November of each year…

... and that initiate and/or maintain during these months the

occupation of workers on fixed discontinuous contracts ...


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During these months the company is entitled to a discount of

50% of employer contributions to Social Security for common

contingencies and unemployment, wage guarantee fund and

vocational training for such workers.

Application of the measure from 8 July 2012 until 31 December

2013.


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Thank you for your attention.

Eduardo Rojo Torrecilla

[email protected]


mailto:[email protected]





2012 labour reforms in Spain.

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