Reform ends era of short-term work misery

10th May 2006, Comments 0 comments

10 May 2006, MADRID — A sweeping reform of the labour market is to end the short-term job insecurity in which many workers are trapped. The government, unions and business leaders have signed a reform which is aimed at promoting stable employment and ending the abuse of short-term contracts.

10 May 2006

MADRID — A sweeping reform of the labour market is to end the short-term job insecurity in which many workers are trapped.
 
The government, unions and business leaders have signed a reform which is aimed at promoting stable employment and ending the abuse of short-term contracts.

The reform will also cut the huge pay-offs which firms have to give to employees who they want to dismiss.

This has traditionally put bosses off granting full-time contracts to many workers because they feared the pay-offs they would be obliged to agree to if the employee was sacked.

Businesses are to be offered incentives including lower social security payments if they offer more workers fixed contracts.

In return, they will be forced to grant an indefinite contract to anyone who has been working in the same job for more than 30 months.

Around 33 percent of Spanish workers are on short-term contracts, which are said to be a handicap to productivity and economic growth, giving workers little incentive to put more into the job.

The rate in Spain is higher than the European Union average.

Jose Luis Rodriguez Zapatero described the reform – which will come into effect in July – as "historic".

It is the first time that the labour market has been changed with a joint agreement for 25 years. 

[Copyright EFE with Expatica]

Subject: Spanish news

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