Do you work in the business world in Spain? If you are an entrepreneur or an employee in a company, it is important that you know about the new Spanish labor reform 2021-2022, a regulation that seeks to improve labor relations in the country. Do you know what we are talking about? Then, in this article we will give you the details you need.

What does the new labor reform consist of?

In December 2021, the Council of Ministers approved Royal Decree-Law 32/2021 on urgent measures to implement a labor reform that contributes to the transformation of the labor market, as well as in the stability of jobs in the country.

However, on February 3, 2022 this law was validated and approved by the Congress of Deputies. And as of March 30, 2022, the new labor contracting regulations will come into force.

But do you want to know what aspects are modified? Basically, there are 4 types of contracts, as well as the Expediente de Regulación Temporal de Empleo.

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Fixed-term contract

There are only two ways to carry out the hiring of personnel in a determined manner:

1. Due to production circumstances

• In this case, these contracts usually arise from occasional and unforeseeable increases or fluctuations that generate a temporary mismatch of employment in the company in question.

• A maximum duration of 6 to 12 months is established.

2. By substitution of the employee

• In this case, these contracts are usually given to replace a person during a suspension with job reservation, to cover a reduced working day due to legal or conventional reasons, or to fill a vacancy during a selection process.

• A maximum duration of 3 months is established.

Permanent-discontinuous contract

Fixed-discontinuous contracts are established for work related to seasonal or seasonal productive activities or those which, without being of this nature, are of an intermittent nature and have certain, determined or undetermined periods of execution.

In this sense, temporary employment agencies may enter into this type of contract. In addition, they may also be performed by companies offering services in the framework of the execution of commercial or administrative contracts.

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Training contract

The new labor reform introduces two types of training contracts:

1. Training contracts in alternation

Its main objective is to make work activity compatible with training processes in the field of vocational training, university studies or catalog of training specialties of the national employment system.

On the other hand, this contract is open to people of any age, with the exception of the Professional Qualifications Catalog, with a limit of 30 years. In addition, a duration of between 3 months and a maximum of 2 years was established.

On the other hand, it will not generate compensation at the time of termination of the contract, and the remuneration should be fixed as follows:

•  It may not fall below 60% in the first year and 75% in the second year.

• It may never be less than the Minimum Interprofessional Wage, proportional to the working day.

• No overtime, probationary period or night work is allowed.

2. Contracts for obtaining professional internships

In this case, the contracts are aimed at students in possession of a university degree, intermediate or higher degree, specialist, professional master’s degree or certificate from the Vocational Training system.

Its duration may not be less than 6 months or more than one year, and may be held for up to 3 years after certification is obtained.

Remuneration shall be established by prior agreement in accordance with the functions performed by the employee:

• It may never be less than the Minimum Interprofessional Wage.

• There must be an individual training plan and an assigned tutor.

• Overtime is not allowed, but supplementary hours are allowed.

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Indefinite-term contract

If you are thinking of incorporating a new employee to your company in Spain, the new regulations establish that the indefinite-term contract must be the one you use.

These contracts will be for an indefinite term and the number of available contract modalities will be reduced.

Indefinite-term contract assigned to a construction site

In the construction sector, the new general contracts will also be indefinite-term contracts. The main purpose of this type of contract is the performance of work or services that are related to the General Agreement of the Construction Sector.

At the end of the work in question, the company must offer the workers an outplacement proposal and, if necessary, a training process provided by the company itself.

On the other hand, the severance indemnity for these workers will be 7% of the previously established salary.

What are the causes for termination of an indefinite-term construction contract?

The recent labor reform establishes 3 causes that could lead to the termination of an indefinite-term contract for construction work:

1. Lack of works in the province

2. Lack of construction skills in the province

3. Rejection of the employee for outplacement

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Temporary Labor Force Adjustment Plan (ERTE)

The regulation of the ERTE is also modified after the new labor reform and these are the main novelties to be highlighted:

• A 90% waiver is allowed.

• More facilities are granted for the processing and application of ERTE for SMEs, with 20% exempted from social security taxes.

• The consultation period is reduced to 7 days for companies with less than 50 employees.

Both Spanish workers and employers should pay attention to this new labor reform, as it will be a key point to create good ties within the company and, in addition, it will allow you to know the regulations established in each of the contracts.

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