Keys Labor Reform 2022

04/02/2022

Categoría: artículo

The labor contracting regulations that are reflected in the New Labor Reform will come into force as of March 30, 2022.

All contracts formalized before December 31, 2021 are governed by the previous regulations. Until March 30, 2022, contracts can be made based on this regulation, but taking into account that those for work or service and eventual ones cannot exceed a duration of 6 months.

This new Labor Reform aims to avoid the temporary nature of contracts. Consequently, it introduces the priority nature of the indefinite contract. 

The execution of fixed-term contracts is only admitted under certain assumptions, such as:

-In case of need due to the substitution of a worker: the substitute may begin the provision of services for a maximum of 15 days prior to the substitution, to enable a more precise knowledge of their functions in the job. 

-Unpredictable increase and production circumstances: In this case, the maximum time ranges between 6 and 12 months. An example is agricultural or Christmas campaigns (with a maximum of 90 days per year, not consecutive).

In addition, a key aspect of the new labor reform is that it limits the period established to chain contracts to 18 months (in a temporary space of 24) and become indefinite. 

Fixed-discontinuous contract

This type of contract is aimed at segments that have so far resorted to temporary hiring. In this sense, it should be emphasized that workers have the same rights with the fixed-discontinuous contract that they are protected by indefinite contracts, including compensation for dismissal.

Therefore, work and service contracts disappear.

From the point of view of companies, the RED Mechanism for Flexibility and Stabilization in employment has been activated, which raises the possibility that companies can request measures such as the suspension of employment contracts or reduction of working hours. In this sense, two types of causes have been established:

-Cyclical causes: with a maximum duration of one year.

-Sectoral causes: it can last a year. In addition, it contemplates two extensions that together cannot exceed 12 months. It is specially designed for those sectors in which retraining actions for workers are necessary. 

Both in the case of cyclical causes and sectoral causes, the same prohibitions on overtime, hiring and productive outsourcing have been established as in ERTES.

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