The Official State Gazette has published this Thursday the new labor reform that the Spanish Government has agreed with the unions CCOO and UGT and the employer CEOE.
After the publication this Thursday of the royal decree-law to reform the labor market in the Official State Gazette (BOE), tomorrow the labor reform that the Spanish Government has agreed with the CCOO and UGT unions and the CEOE employers will come into force. However, companies will have until March 30 to adapt to it.
The work or service contracts and the eventual ones due to production circumstances held from December 31 to March 30, 2022 will be governed by the legal regulations in force on the date on which they were agreed, but their duration may not exceed six months.
In the case of having entered into before December 31, these contracts, as well as the fixed contracts of construction work, will be applicable until their maximum duration.
The labor reform, approved last Tuesday in the Council of Ministers, seeks to put an end to temporary employment, restore balance to collective bargaining and incorporate into ordinary legislation the temporary employment regulation files (ERTE) that will replace those used in pandemic, but with the same objective: to avoid layoffs.
The new regulation establishes that the ordinary employment contract will be indefinite and that only temporary contracts can be made with highly valued causes.
The standard recovers the ultraactive full of collective agreements, so that these will be extended until they are replaced by new ones, without a time limit.
What’s more, the sector agreement will regain its prevalence over the company agreement. Contracts and subcontractors will be subject to the agreement of the sector of the activity carried out or that of the main company.
Also, the standard strengthens the temporary employment regulation files (ERTE) to avoid collective dismissals. In this way, ordinary labor legislation will include ERTEs that have been used massively during the pandemic, with greater facilities for their processing, and will create new ones under the name RED Mechanism to respond to cyclical or sectoral crises.
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