Managing work offices can be complicated if you plan to start a business in Spain. For this reason we want to explain you what are the main news of the labor reform in Spain: we are a consultancy that can assist you in your language and we know all aspects of labor and tax legislation.
On December 30, the new labor reform on the transformation of the labor market and the guarantee of employment stability was published and we would like to tell you about its main changes.
The aforementioned regulation came into force on December 31, 2021 and companies will have until March 30, 2022 to adapt it to the new framework.
These are the main novelties of the reform:
1. The training contract
The internship contract, the training and apprenticeship contract and the dual university training contract are abolished. The new training contract can be of two types:
Training contract in alternation
• It makes paid work activity compatible with training (vocational training, university or studies from the Catalog of Training Specialties of the National Employment System).
• This contract is available only up to 30 years of age. The recipients are students who do not have the qualification to enter into a training contract, to obtain professional practice and for people with another qualification.
• The maximum duration is 2 years.
Training contract for obtaining professional practice
- For those who have a university degree, intermediate or higher degree, specialist, professional master’s degree or certificate of the vocational training system. It is also intended for those who have an equivalent degree in artistic or sports education of the educational system.
- It lasts between 6 months and one year and can be held within a maximum period of 3 years (5 years in the case of people with disabilities) after obtaining the certification.
2. The contract for a specific work or service, temporary or interim contract.
• It will be possible to enter into fixed-term contracts for substitution of a worker and due to production circumstances.
• It will have a maximum duration of 6 months (12 months if established in the sector agreement) and may only be entered into in the event of an occasional and unforeseeable increase in activity causing temporary mismatches between stable employment and that which is necessary in the company and also in the event of workers’ vacations.
• Collective bargaining agreements may include plans for the reduction of temporary employment, maximum percentages of temporary employment and the consequences of non-compliance with such plans.
• Fixed-term construction contracts will disappear in the construction sector. New hires will have to be made through an indefinite-term contract.
3. The permanent-discontinuous employment contract.
This type of contract will be promoted over temporary contracts as the ideal formula for the performance of seasonal work or work linked to seasonal productive activities.
The regulation of ERTEs (especially those due to force majeure) is modified and the so-called Red Mechanism for Employment Flexibility and Stabilization is created with two modalities, cyclical and sectorial.
1. ERTES due to force majeure
Temporary force majeure may be determined by limitations or impediments in the normal activity of the company resulting from decisions adopted by the competent public authority. This includes limitations aimed at protecting public health.
During the period of application of the ERTE:
• Companies may disaffect and affect workers.
• Overtime and extra hours will not be allowed. Neither will it be possible to establish new outsourcing of activity nor to arrange new labor contracts. It will only be possible if the affected persons are unable to perform the functions entrusted to them.
• It will be possible to develop training actions in order to improve the professional competences and employability of the workers.
2. New ERTE (Employment Stabilization and Flexibility RED Mechanism)
The purpose of the new ERTE is to allow companies to request the labor authorities to voluntarily reduce working hours or, if this is not feasible, to suspend employment contracts.
The reduction of working hours may be between 10% and 70%, and may be calculated on the basis of the daily, weekly, monthly or annual working day.
Two modalities can be distinguished:
• Cyclical. When there is a general macroeconomic situation that advises the adoption of additional stabilization instruments, with a maximum duration of one year.
• Sectoral. When there are permanent changes in a specific sector or sectors of activity that generate the need for retraining and professional transition processes for workers. Its initial maximum duration is one year, with the possibility of two extensions of six months each.
3. Contribution exemptions
The companies that during the application of the ERTE develop training actions have the possibility of enjoying exemptions in the contribution to the Social Security and for concepts of joint collection on the company’s contribution:
• ERTES due to ETOP causes: 20%.
• ERTES due to force majeure or force majeure of impediment or limitation in the normal activity of the company: 90%.
• ERTE RED Mechanism
• Cyclical mode: 60% from the date on which the activation occurs (by agreement of the Council of Ministers) until the last day of the fourth month following the date of activation; 30% during the 4 months immediately following the termination of the previous term; 20% during the 4 months immediately following the termination of the term referred to in the second point above.
• Sectorial mode: 40%
Minimum interprofessional wage
The minimum interprofessional wage 2021 is extended until the minimum interprofessional wage 2022 is set.
Collective bargaining agreements
• The end of the ultra-activity of collective bargaining agreements is established. No “expiration” period is established once the agreement is denounced, the validity of which will continue to be maintained for as long as the talks are extended.
• The regulation of the conditions of the company agreements will not have priority over the amount of the base salary and salary supplements, including those linked to the situation and results of the company.
• Subcontracting. The new regulatory framework between contractor and subcontractor companies determines that there will always be a sectoral collective bargaining agreement applicable -which may be that of the activity carried out in the main company or another one- if so determined by the sectoral collective bargaining agreement within its general rules. The company agreement can only be applied by the contractor if it determines better wage conditions than the applicable sectorial agreement.
How we can help you
At Centre Gestor we help companies to manage everything related to their workforces and their employees.
We offer comprehensive services and you can find a professional consultancy that offers a set of services to suit your needs.
The best way to have all the administrative and economic information of your business organized to make strategic decisions is to delegate everything related to the management of the company to a business consultancy.
If you want to start a company in Barcelona, you can count on us as your labour adviser and tax advisor.