The Government Proposes Reducing Labour Contracts To Three In Its Recovery Plan

labour market

The Recovery, Transformation and Resilience Plan the government will send to Brussels this April includes reforms to the labour market, amongst which is the simplification of the types of contracts in Spain to a total of three to reduce duality.

On Wednesday, Prime Minister Pedro Sánchez presented to Parliament the over 200-page document containing the Plan’s reforms and investments. The three types of work contract would be a ‘stable’ one for all activities, another ‘temporary’ one for those that are of this nature and a ‘training’ one for insertion, particularly in the labour market.

For this reason, a programme of reforms is being proposed that aims to cut temporary employment, structural unemployment and youth unemployment to reach the European average.

That area also includes promoting new instruments of “internal flexibility” as an alternative to dismissal and high temporary employment. This would be through mechanisms for adjusting working time in the face of cyclical or extraordinary declines in demand and to accompany structural transition processes in sectors undergoing reconversion.

In its labour market reform plan the government also considers guaranteeing decent jobs through appropriate regulation for teleworking, digital platform delivery workers and subcontracting, as well as the modernisation of collective bargaining mechanisms.

Active employment policies

Furthermore, active employment policies will be boosted, orienting them towards the training of workers in the areas demanded by the transformations required by the economy. Meanwhile, the digitalisation of the SEPE will be an important reform contributing to the modernisation and efficiency of employment services.

Investment in public policies for a “dynamic, resilient and inclusive” labour market totals 2.363 billion euros, focusing on youth employment, policies to support activation for employment and new territorial projects for rebalancing and fairness.

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