Labour Reform 2012: Overview of the Main Changes

The reform covers many areas: amendments to existing contracts and the creation of new types; new paid leave entitlements; a new professional classification system; functional and geographical mobility; substantial modifications to the employment contract; and more.

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Conesa Legal

At Conesa Legal, a legal advisory firm based in Barcelona, we have a team of lawyers specialized in all areas of law. We also provide comprehensive advisory and management services covering payroll, tax and accounting, and corporate compliance for both companies and self-employed professionals. We stand out for our expertise in labor law and social security, offering a highly specialized and personalized service since 1976. Our services include both preventive and reactive legal advice and representation, tailored to the needs of businesses and workers alike. Our multilingual team provides legal assistance in English, French, and Spanish, and is well prepared to support a broad range of local and international clients, whether they are companies seeking comprehensive legal solutions or individuals in need of personalized legal advice.

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Several aspects stand out: new limits on ultra-activity (the automatic extension of expired collective agreements); greater ease of opt-out from collective agreements and an expanded range of matters that may be disapplied; new objective grounds for collective dismissal; new ways of measuring absenteeism as grounds for contract termination; a revised calculation of compensation for unfair dismissal; abolition of interim wages during unfair dismissal proceedings; and more.

This is a far-reaching reform, and we consider it unlikely to change substantially during the parliamentary process the Government is pursuing.

Among all the new measures, we wish to highlight the expansion of matters that may be agreed in company-level collective bargaining agreements, which will take precedence over any other collective bargaining agreement. We believe that company-level agreements of this kind will give employers and employees the freedom to tailor their employment relationships more closely to their own needs, and can be an effective solution to problems that have until now been impossible to resolve in certain organisations. The matters that may be agreed at company level include:

• The amount of base salary and supplements (including those linked to productivity and company results).
• Compensation for overtime.
• Shift pay.
• Working hours and the distribution of working time.
• Shift arrangements.
• Holiday entitlement.
• Professional classification system.
• Adaptation of contract types.
• Measures to promote work-life balance.
• Any matters provided for in inter-professional agreements.

We hope this new employment framework will prove beneficial to many companies and their employees as they navigate the current economic crisis.

You are welcome to download the summary we have prepared, which sets out the main changes introduced by this reform. Should you have any questions, please do not hesitate to contact us, we are at your disposal.