Wednesday, March 14, 2012

Key aspects of the 2012 Labour Reform

The BOE num. 36 of 11th of February 2012, published by the Royal Decree Law 3/2012 of 10 February, for urgent action to reform the labour market and entered into force on the date February 12, 2012. This Royal Decree law amends existing regulations of the following fields

- CREATION OF NEW CONTRACT. It must be permanent and full time and can arrangd by all the companies that employ fewer than 50 employees (but is said to be of support to entrepreneurs). Can be agreed trial period of one year and regulating tax incentives and bonuses SS fees if the current employment contract is for 3 years.

- TRAINING. All workers with antiguüdad than one year shall be entitled to paid leave of 20 hours per year, accumulated over a period of 3 years.

- SUBSTANTIAL AMENDMENT WORKING CONDITIONS. The rate of pay, until now excluded from the subjects that could be modified, is included in the list of those likely to be modified.

 - SUSPENSION OF CONTRACT AND REDUCTION DAY. The administrative authorization has been removed and sufficient that the employer communicate the decision to the Labour Authority, without prejudice can be challenged before the social courts - Pick the collective agreement. It can affect the following areas: wages, hours, schedule and distribution, shift work, and work system performance, features and enhancements SS volunteers, for example, in cases of IT

- ENTERPRISE AGREEMENTS. Its content will apply to priority over that of the same subject can regulate the sectoral agreement.

 - COLLECTIVE ultra-activity. Its validity shall expire 2 years from the complaint without having agreed a new one, if not stated otherwise agreed

- COLLECTIVE DISMISSAL DUE OBJECTIVE. It is understood that you can remember when they current or anticipated losses or persistent decrease in income or sales for 3 consecutive quarters. For the employer to decide, having abolished the administrative authorization. The control corresponds to the labor courts if challenged.

- INDEMNIFICATION unfair dismissal. For those hired on or after 02.12.2012, the amount of compensation will be 33 days per year worked, up to 24 months. For those hired before that date, compensation will remain at 45 days per year of service prior to that date at the rate of 33 days from the time of service after that date, apply in the latter case the top of 42 months , interim wages. In unfair dismissal wages are suppressed processing, except in cases of readmission or in the case of workers' legal representatives, called layoffs orexpress disappearing.

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