How the new labor reform will affect businesses, according to the Abencys office

On February 3, Congress voted in favor of approving what is known as the “labor reform.” This includes measures to be implemented with the aim of, according to Yolanda Diaz, Labor Minister, “reduce the precariousness of workers”. from the office Abency’sit is questioned whether the approved Reform will truly serve the objectives it sets out or whether, on the contrary, it will prove to be an insufficient, incomplete and superficial norm, which ends up generating a result very different from the intended one.

The main objective of the new legal text seems to be tackling abuse in temporary contracts and fight against job insecurity. For this, this legal body, misclassified as “reform”, has established indefinite contracting as an almost absolute general rule, with the exception of allowing temporary contracting in the case of substitution contracts or when the temporality is due to production circumstances. With this measure, what the Government intends is to reduce job insecurity, obtain greater stability, and thus reduce unemployment and encourage its creation.

However, Teresa Ezquerra, a lawyer from Abencys, considers that “Notwithstanding that the reform obeys reasonable objectives, the truth is that its approval can be counterproductive and have the opposite effect”. As Teresa points out,the lack of flexibility Regarding the contractual modalities, it can discourage the employer when hiring, which will negatively affect the objective of job creation. Any lasting contractual relationship, whatever its nature, requires being able to adapt to the circumstances and needs of all the contracting parties”.

Labor reform: has it been the right solution?

The simplification of contractsfurther “it encourages the appearance of legal loopholes, which generate insecurity for both employers and workers. This, added to the increase in costs associated with indefinite contracts, can encourage an increase in the illegal hiringTheresa points out.

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In short, what was announced as a reform has turned out to be a rather superficial modification of some issues.

Although this rule has not yet been applied and we will have to wait until we see its effects, it can be forecast that won’t do to the objectives of stabilizing the labor market and creating jobs.

“The labor reform brings with it a legal insecurity that can jeopardize job creation and the quality of contracts,” adds Teresa Ezquerra, lawyer at Abencys.

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