03 Jan
eu generation

New Spanish labour market reform (Royal Decree-Law 32/2021)

The Spanish Official State Gazette (BOE in Spanish) of past December 30, 2021 published Royal Decree-Law 32/2021, 28 December, on urgent measures for labor reform. It supposes a new labour market reform (it modifies the the Workers’ Statute (Estatuto de los Trabajadores in Spanish) and another laws.

According to the Spanish Government the reform pretends to put an end to precariousness and temporary employment in Spain.

Key measures of Spanish Labour Market Reform 2022

Collective bargaining

The regulation restores ultra-activity on a permanent basis. The conditions laid down in a collective agreement shall remain in force after the end of its express term.

The prevalence of the company agreement over other agreements is repealed. Yolanda Díaz pointed out that it could only be applied if the contractor or subcontractor had their own agreement that improved conditions in the sector.

Reinforce fixed term contracts 

The Spanish vice-president, Yolanda Díaz, stressed that the standard contract in Spain is the  fixed term contract.

In this sense it will disappear the contract for project work or services. According to Yolanda Díaz “we are moving to a single temporary contract in which we recover the causality, which has to be deeply motivated and restricted”.

Díaz explained that there is only one fixed-term contract, which may be used due to production circumstances or the substitute of a worker.

On the other hand, the vice-president stressed that if companies are involved in any contractual irregularity with workers, they will become permanent members of staff. In addition, penalties and company infringements are individualised and will be up to a maximum of 10,000 euros for each worker affected.

Companies will have three months to adapt existing temporary contracts to the new legislation and six months for works and service contracts. The new temporary contracts regulation will enter in to force on 31 March 2022.

Construction contracts and discontinuous fixed contract

In the construction sector, construction contracts become permanent. Once the work has been completed, the company must relocate their workers to another site or offer them training or requalification.

Some conditions in discontinuos fixed contract are also changed.

Training contracts

There are two types of training contracts: training and and work experience.

The former can be arranged with people of any age, except in the case of the Catalogue of Professional Qualifications, with a limit of up to 30 years old, and with a maximum duration of two years. Remuneration will be adapted to the agreement and may not fall below 60% in the first year, and 75% in the second year, and will never be less than the Minimum Wage proportional to the working day.

Contracts for professional practice may be arranged up to three years after certification and have a duration of between six months and one year.

Public administrations and scholarship holders

The vice-president stressed that staff who join public administrations through selective processes cannot be dismissed. She also announced that the Government and the social partners are going to develop the Statute for Scholarship Holders. A specific occupational health plan for minors will also be implemented.


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