The Education Reform, February 2012 -

The Spanish government has approved a labor reform that reduces compensation for unfair dismissal to 33 days per year worked, instead of the current 45 days, which prohibits chaining temporary contracts over 2 years. The reform also eliminates the system of classification of employees by professional category and provides companies with difficulties in the implementation of the agreement not higher level. Compensation for dismissal is 20 days per year worked and can be applied when the company has a loss or drop in income or sales for three consecutive quarters. The standing charge allowance that serves the community and young people can capitalize on it if you are self-employed.

1. Law training and learning contract
Employees with more than one year have annual paid leave of 20 hours of training activities whose content must be linked to the job. Raised the maximum age to have access to this type of contract, taking into account the extension of periods of study and the high unemployment rate in the group of children under 30 years until the rate of Unemployment down 15%.

2. Permanent contracts to support new entrepreneurs
The reform promotes a new permanent contracts for SMEs and freelancers (companies with less than 50 employees), with the following characteristics:
- There will be a trial period of 1 year.
- The Company shall be entitled to a tax deduction on your account of $ 3,000 when it hired its first employee, provided you have less than 30 years.
- To hire an unemployed worker may deduct 50% tax on unemployment benefits that come charging workers for 1 year. Meanwhile, the employee may voluntarily receive along with their salary, 25% of unemployment benefits during the same period.
- To encourage the recruitment of young people, with an unemployment rate close to 50%: bonus share for Social Security up to 3,600 euros for permanent hiring of young people between 16 and 30 years for three years. The bonus increases with increasing age of the worker: I Year: $ 1,000 / II Year: 1100 Euros / III Year: 1200 euros. Apply $ 100 more a year if the worker is a woman in sectors where this group is poorly represented.
- To encourage the hiring of long-term unemployed: bonus of up to € 4,500 for the indefinite long-term unemployed aged over 45 (18 Caught at least 12 months earlier): I Year: 1300 Euros / II Year: $ 1300 / III Year: 1300 euros. When contracts are arranged in sectors where women in this group is poorly represented, bonuses amounted to € 1,500 indicated.

3. Limited chaining of temporary contracts
As of 31 December 2012 banning gets chained temporary contracts beyond 24 months.

4. Regulation of teleworking
Regulated for the first time in Spain telecommuting safeguarding the right to train these workers. Guarantees the right to compensation equivalent to that work in presenting cial workplace and be informed of vacancies in existing positions face.

5. Functional mobility and professional Rating
Eliminated the classification system employees by professional category and generalized system of professional groups, and facilitates the adaptation of workers to new functions.

6. Improved mobility and ease of modification of working conditions
Simplified procedures to reduce or suspend the working contract as adjustment mechanism in situations of declining demand. Eliminates administrative authorization necessary to perform the measurement.

We introduce a bonus of 50% of the employer's social security of workers affected by the suspension or reduction in working hours, with a maximum duration of 240 days and conditional stability in employment (at least one year .) If the company finally terminates contracts, workers are not undermined their right to unemployment benefits, as set replacement benefits (counter 0) up to a maximum of 180 days.

7. Internal flexibility
We introduce the priority of business agreements, so that regardless of what level you agreed to, workers' representatives and the employer may agree a contract company that suits your needs and peculiarities.

It provides companies struggling not to apply higher level of agreement (decoupling). If there is no agreement, the parties go to court settlement of disputes, if any, to arbitration if they have agreed in the collective agreement. Otherwise, one party will bring discord to the Advisory Committee on Collective Bargaining or its regional equivalent, which will appoint an arbitrator to resolve a maximum of 25 days.

To promote the achievement of negotiation and agreement, the parties must negotiate a new agreement within a period of two years. Based on this data, the agreement is no longer valid, so put an end to ultra-activity indefinite agreements.

8. Bigger effectiveness of labor market
Regarding employment termination for business reasons:
- It clarifies the reasons for the dismissal to prevent excessive judicialization.
- Eliminates prior administrative approval, in line with the practice of European countries.
- Opens the possibility that the agencies and entities in the public sector invoke causes economic, technical, organizational and production. This measure aims to facilitate the downsizing of administrative structures that grew disproportionately during the phase of strong economic growth and that are not sustainable from a financial point of view at present, nor is there an expectation that it will be in a few years.

To reduce the duality in the labor market:
- It generalizes compensation for the termination of permanent contracts, which will be 33 days per year worked in case of unfair dismissal, with a maximum of 24 months.
-Respect for acquired rights of workers: for old contracts, the new allowance applies only for the period of work to be done after the approval of this standard. These contracts retain the right to compensation of up to 42 months. This new compensation generally applies only to new contracts.
- Compensation for the termination of permanent contracts is 20 days per year worked in the case of dismissal for objective reasons, with a maximum of 12 months. This redundancy can be applied when the company has a loss or drop in income or sales for three consecutive quarters.
-The Wage Guarantee Fund only cover the termination of contracts for layoffs coming in SMEs.
-It strengthens the right to education: the employer is required when conducting a technical amendment which has been adapted to the worker, offers a course that can be formed. This training period and suspended the contract worker charged his salary. Employee may only be dismissed for lack of adaptation before if this training has been provided with no results.
-Joined the obligation for companies that fired more than 100 workers to articulate a plan to relocate outside designed for a period of at least six months.

9. Greater control and combating fraud. Measures against absenteeism.
Boosted the unemployed who are receiving benefits provide services of general interest for the benefit of the community through collaboration agreements with public authorities.

Individual behavior to combat unjustified absenteeism removed linking worker absenteeism and staff to justify absenteeism as a cause of dismissal. As of now only take into account worker absenteeism. It will improve the efficiency of the evaluation of temporary disability through mutual accidents.

10. Capitalisation of unemployment benefits.
It allows 100% of the capitalization of unemployment benefits for young people up to 30 years and women under 35 who begin an activity as self-employed.