Law 3/2012 of 6th July regarding the urgent measures for the labour market reform was published in the BOE (Spanish Official State Gazette) on 7th July 2012. Said Law is derived from the Royal Decree published on 11th February 2012.
The measures contemplated in said Royal Decree may be consulted by clicking here.
More than eighty amendments have been added during the parliamentary processing of the Law, which have modified some aspects of Royal Decree 3/2012, amongst which are the following:
• In order for companies, who wish to carry out a collective dismissal procedure due to economic circumstances, to demonstrate a decrease in sales and income, figures from the same quarter of the previous year should be compared.
• There are more premises allowing for the formalisation of training contracts.
• The period of validity is reduced from two years to one year for denounced collective bargaining agreements, where a new agreement has not been made and neither has an arbitration award been passed.
• The irregular distribution of the working day by the employer is increased, and may reach the proportion of up to ten per cent of the working day.
• It is announced that in 2013 a limitation measure shall once again be applied to the consecutive linking together of temporary employment contracts.
• Indemnifications received before conciliation acts shall no longer be exempt from income tax, in cases where the company admits unfair dismissal. This measure, which was already discerned in the Royal Decree, means the elimination of rapid dismissal procedures and creates the need for conciliation hearings.
The measures adopted are an attempt to give greater internal flexibility to companies and to increase guarantees to the workers in dismissal cases.
For more information, please contact:
Ismael PERALTA: ipv@vila.es
12.02.2012
