Today the Congess Has Passed a Definite Approval of the Labour Reform

9 September 2010

The final and approved version of the law contains more than 70 amendments, negotiated by the Government with the opposition groups.

Objective dismissal, with a 20-day severance pay, may be justified by “actual or foreseen” losses or the “continuous decrease in the revenues”. Moreover, it will be possible now to dismiss an employee due to absenteeism if the absenteeism rate of the staff does not exceed 2,5%.
The law will require the companies to give permanent work contracts to the employees with temporary contracts, who have been working for more than three years with the same company.

The most significant change is that the compensation payment for partial unemployment will be calculated on the per-hour basis, instead of per-day basis, which clearly provides an advantage for the struggling companies that have implemented the reduction of working hours measure instead of dismissals.

For further information please contact Ana Gómez: