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Labour Reform 2022 in Spain

Blog labour reform in Spain 2022 at niikiis

What is Labour Reform 2022?

The 2022 labour reform is presented as a remodelling of the contracting system, which aims to put an end to the existing dysfunctionalities in the Spanish labour market. This year, the reform seeks to eliminate the contract of work and service, promoting the fixed-term contract for seasonal activities. Thus, the 2022 labour reform shortens the deadlines for making a worker permanent when accumulating several temporary contracts from the current 24 months to 18.

At niikiis, we consider it important to be continuously informed about the changes in the labour reform. In 2022, the reform is a breakthrough that restores workers' rights, reduces temporary employment and strengthens collective bargaining.

Key aspects of the 2022 labour reform

1- Collective bargaining.

In order to establish employment conditions, minimum wages are set by sectoral agreements. In addition, indefinite ultra-activity is restored, meaning that the automatic extension period is determined by the conditions laid down in a collective agreement even after the end of its express validity.

 

2- Simplification of contracts.

  • Establishment of the indefinite-term contract as the ordinary contract.Disappearance of the contract for work or service.
  • Modification of the temporary contract. Only two types of temporary contracts can be formalised: training and structural. In the structural temporary contract, it must be justified whether it is due to circumstances of production or due to the replacement of another worker with job reservation.
  • Establishment of open-ended contracts in construction: contracts in this sector will be open-ended and once the work is finished, the company will offer workers relocation to another site or training or retraining.
  • Change of model in training contracts with two modalities:  
    • work-linked training contract: the purpose of this contract is to make paid work activity compatible
    • training contract for professional practice: corresponding to the level of studies.
  • Definition of fixed-term contractsFixed-term contracts: determined by the nature of seasonal work, linked to seasonal productive activities or intermittent work.

 

3- Modification in the contracting and subcontracting of business activities.

There will always be a collective agreement sectoral collective bargaining agreement, either the one for the activity carried out in the company or another one determined by collective bargaining.

 

4- Temporary lay -offs to avoid redundancies:

  • ETOPs, which introduce changes with the intention of facilitating their processing.
  • ERTE due to force majeure adds, as a specific cause, the impediment or limitations to normal activity determined by decisions of the authority.

 

In addition, the RED flexibility and stabilisation and stabilisation mechanism, which will be activated by the Council of Ministers.

General improvements for employees

Undoubtedly, the new labour reform brings advantages for employees, as well as: 

  • the introduction of the priority status of permanent contracts
  • the limitation to 18 months of the period established for chaining contracts and becoming permanent
  • the disappearance of service contracts.
  • wages may not fall below what is specified in the agreement and "ultra-activity" is once again indefinite.

However, the government's labour reform does not change, the business cost for dismissing a person does not change, the 33 days per year worked remains unchanged.

Sanctions on companies

In the labour reform of 2022, not only have the penalty amounts increased, but also each offence can be multiplied by the number of employees affected. 

  • Failing to comply with the new rules on temporary contracts. In other words, making a temporary contract when they should have made a permanent contract. The penalty will be between €1,000 and €10,000 for each worker affected.
  • Hiring new workers while others are on ERTE. Except if they are unable, due to training, qualification or other objective and justified reasons, to carry out the duties of the new workers. As with the previous sanction, the penalty will be between €1,000 and €10,000 for each worker hired.
  • Subcontracting to another company with workers on ERTE; with the same exception as above. The penalty here varies between €7,501 and €225,018.

2022 is going to be a year of adaptation and labour novelties that both companies and employees will have to pay attention to. At niikiis we make it easy for you to keep up to date with your legislative updates. At niikiis we make it easy for you to keep up to date with your legislative updates. Do you want to know more? Request a free demo Visit niikiis and discover how we support the legal compliance of your organisation.

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