Publications

Updates Labour 9-2012

07/07/2012
Commentaries

Law 3/2012, of July 6, 2012, on urgent measures to reform the labor market

While the provisions of the Royal Decree-law remain largely unchanged (for a description of that legislation, see our previous labor law update of 3-2012), certain amendments and new legislation have been added. The most important new changes are summarized below.

1. MEASURES TO ENHANCE THE EFFICIENCY OF THE JOB MARKET AND CUT DOWN ON THE TWO-TIER SYSTEM (BETWEEN INSIDERS WHO HAVE INDEFINITE TERM CONTRACTS AND OUTSIDERS WHO DO NOT)
1.1 Collective layoff
1.2 Individual layoffs on objective grounds
1.3 Unjustified dismissal
1.4 Severance for contracts prior to February 12, 2012
1.5 New legislation in relation to tax-exempt severance payments
1.6 Public sector-related provisions
1.7 Collective layoffs affecting workers aged fifty or over at companies in profit
1.8 Application of Article 15.5 of the Workers’ Statute in relation to successive temporary contracts

2. MEASURES TO PROMOTE INTERNAL FLEXIBILITY AT COMPANIES AS AN ALTERNATIVE TO DESTROYING JOBS
2.1 Working time
2.2 Geographic mobility (new Article 40.3 ter of the Workers’ Statute)
2.3 Temporary interruptions of contracts or short-time working on economic grounds
2.4 Collective bargaining

3. MEASURES TO INCREASE THE USE OF INDEFINITE-TERM CONTRACTS AND OTHER MEASURES TO HELP JOB CREATION
3.1 Indefinite-term employment contract in support of entrepreneurs
3.2 Reductions in social security contributions for the conversion of work-experience, handover and substitution contracts into indefinite-term contracts

4. MEASURES TO INCREASE WORKERS’ EMPLOYABILITY
4.1 Employment intermediaries
4.2 Professional training

5. OTHER SIGNIFICANT PROVISIONS
5.1 Prohibition on mandatory retirement clauses
5.2 Specific provisions on contracts for services and senior management employment contracts in the public sector 
5.3 Measures in support of prolonging the working periods of employees with indefinite-term contracts for seasonal work in the tourism, tourism-related commerce and  hotel industries 
5.4 Amendments to the Labor and Social Security Infringements and Penalties Law  
5.5 Contributions on overtime under part-time contracts
5.6 Amendments to the Labor Jurisdiction Law 
5.7 Reinstatement of the right to unemployment benefit 
5.8 National Collective Labor Agreement Consultative Committee
5.9 Integration of periods for which contributions have not been made for permanent disability and retirement benefits

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