NEW LABOR REFORM 2022

The Council of Ministers has approved this Tuesday, December 28, the Royal Decree-Law with the changes in the labor legislation that have been agreed with the employers and unions.

1.- One of the most striking aspects of the labor reform are the new ERTE. With this new labor regulation, the temporary employment regulation files (ERTE) will be strengthened in order to avoid collective dismissals. These new ERTEs, which are called 'RED Mechanism', will cover two modalities: one cyclical and the other sectoral. This last modality, the sectorial one, will have a maximum duration of one year.
                 
2.- It is intended to end the temporary nature of the Spanish labor market. It will be done in such a way that the ordinary employment contract is indefinite and that temporary contracts are only given due to specific circumstances of production or the replacement of a worker, such as due to maternity leave for example.
The temporary contract for production circumstances is set at six months, extendable to one year, while the duration of the contracts for increased production is 90 days. Workers in the construction sector will also have a permanent contract and, when the work on which they are working is finished, the company must relocate the worker.

3.- Regarding training contracts, there will be two modalities: alternating training and obtaining professional practice. The alternation training contract aims to respond to the acquisition of the professional competence corresponding to a certain level of studies. The days will not exceed 65% the first year and 85% the second year and no overtime, shift work or night hours may be done.
Contracts to obtain professional practice may be for a maximum of three years, or five years in the case of people with disabilities, after obtaining the certification. Its duration will be between six months and one year.
 
4.- The ultra-activity of the agreements is also recovered, which means that the conditions established in a collective agreement will continue in force after the end of its express validity. This was one of the most important aspects for the unions when negotiating the labor reform.