In 2012, the government of Mariano Rajoy decided to conduct a thorough reorganisation of the Spanish labour market through a long-awaited reform. This reform favours entrepreneurs and gives them more freedom to manage their staff. Employees themselves do have some reservations about this reform which aims to encourage companies to create new jobs.
These changes made by the Spanish Government consist of 4 main fields of action:
The main objective was in particular to modernise the Spanish labour market but also to prepare for a growing economic crisis that has been suffocating the country since the bubble burst in 2008. With a more flexible and competitive market, the Spanish government hopes to reduce the unemployment rate which reached a record rate of 25% in 2013 and almost 50% amongst those under 25 years old. The positive effects of this reform should be seen in the medium term from 2015/2016.
This reform clearly favours entrepreneurs by giving them more freedom to organise their staff. It has allowed many companies to separate themselves from non-productive employees or to adapt their working hours and the role of certain employees to overcome any economic difficulties that they may encounter. Employees under 30 years old are clearly favoured here too. They will now have access to fixed-term contracts and training contracts, leaving precarious, unreliable contracts to which they were accustomed in the past.