Spanish government restates promise to alter employment laws

Spain’s labour minister, Yolanda Díaz, has restated her government’s commitment to make substantial changes to the country’s employment laws. And she has set a date — the end of this year — for their completion.

Reversing many of the employment changes introduced in 2012 by the right-wing government was a key part of the programme of the coalition government of the social democrat PSOE and the more left-wing Podemos Unidas which came to power in January 2020. However, the COVID-19 pandemic disrupted its plans, and it has made only one significant change — the abolition of a clause in the legislation permitting the general dismissal of sick employees, removed in February 2020.

The government is unlikely to reverse all the legislation introduced in 2012 — the demand of the unions. But Díaz has made clear there will be considerable change which will be part of the government programme of recovery from COVID.

On the key issues of employment contracts and collective bargaining, Díaz promised substantial changes.

These include:

• establishing permanent employment as the normal form of employment contract, with temporary contracts limited to specific needs;

• improving the working conditions of sub-contractors;

• examining the relationship between company and industry-level agreements; and

• looking at mechanisms for consultation and negotiation where there are major changes in working conditions.