Spain’s leftist cabinet approved Tuesday (28 December) a landmark labour law reform which aims to reduce the use of temporary contracts and boost job security.
Summary
- Spain’s leftist cabinet approved Tuesday (28 December) a landmark labour law reform which aims to reduce the use of temporary contracts and boost job security.
- Spain is currently the European Union nation where the use of temporary contracts is highest, but the reform tightens conditions for their use in the eurozone’s fourth-largest economy.
- It limits most temporary contracts to a maximum of three months and will allow temporary hiring only under certain circumstances.
- Improper use of temporary contracts will be penalised with fines and social security penalties.
- The reform also restores collective bargaining with unions as the main channel to negotiate contracts.