What does the new Employment Law propose to overcome the challenges of the current labour framework?

In March 2023, the New Employment Law came into force, which incorporates measures in accordance with the needs of the labor market and business context at the European level, characterized by convergence in the different matters that concern all those involved, due to the speed of action of the administrations, for resilience in the face of new scenarios that, like the last pandemic, may arise, and for digital transformation.

The new Employment Law is based on a more global model , attentive to the characteristics of the European framework, in order to carry out structural reforms in the coming years that entail regulatory changes and investments. For this, the financial resources of the European Recovery Fund received in Spain will be directed to implement new public policies that promote a more dynamic, egalitarian, inclusive, sustainable labor market and that reduce youth unemployment rates.

What challenges does the new Employment Law address?

This standard includes six titles, dedicated respectively to employment policy, which address the main challenges that must be addressed urgently to reactivate the country’s economy through quality employment. Some of the most important and urgent goals are:

• Reduce structural unemployment and youth unemployment.
• Put an end to the succession of temporary contracts and the instability that this generates.
• Improve competitiveness human capital.
• Modernize the mechanisms for collective bargaining .
• Increase the effectiveness and efficiency of public employment policies.
• Contribute to updating the resources and training necessary to implement the new digital tools.
• Implement new measures that advocate gender equality in companies to put an end to pay and treatment differences.
• Establish measures that respect the family conciliation of workers.

Main points of the new Employment Law 2023

The new Employment Law establishes the framework for organizing public employment policies, regulates all structures, distributes both services and resources, and generates programs that are integrated into the National Employment System. Thus, nine objectives of this new standard can be highlighted that differentiate it from previous employment laws:

• The Minimum Interprofessional Salary is non-seizable : this means that the months with double pay, the non-seizable amount is twice the SMI. This measure is one of those that modifies article 27 of the Workers’ Statute.
• Mandatory, but not binding, report of the labor inspection in the collective dismissal : the Inspection must resolve on the specific causes the company alleges to justify the ERE.
• Right to not be discriminated against : one of the main objectives of this new law is to improve and promote inclusion. This point focuses on non-discrimination, by public or private services, for reasons of language, race, religion, culture or nationality within the Spanish State.
• The governing bodies of the National Employment System are established , made up of: the Sectoral Conference on Employment and Labor Affairs, and the General Council of the National Employment System.
• The Spanish Strategy for Active Support for Employment is developed : for this, tools such as the Annual Plan for the Promotion of Decent Employment and the Integrated Public Information System of Employment Services are used.
• The Spanish Employment Agency will replace SEPE : with the new law, private employment agencies will collaborate with the public services corresponding to each autonomous community. This will also serve as a check mechanism to continue enacting the listing.
• A catalog of guaranteed services is implemented for people requesting employment services, individuals, companies and for other employer entities. These services range from providing personalized training to each job seeker, to receiving training for entrepreneurship, as well as facilities for companies that wish to address digital transformation.
• A regulation is drawn up to measure the effectiveness of the activity of employment agencies , taking into account data such as: the number of people served, the job offers issued, the reduction of the gender gap and the contracts obtained.
• Expansion of priority groups so that aid and measures for employment are distributed according to new needs. This group includes: people over 45 years of age, workers in sectors undergoing digital transformation, LGTBI people, particularly trans people, people with disabilities, with intellectual capacity and with autism spectrum disorders and victims of gender violence.
• The new Employment Law also aims at the functional and sectoral mobility of employees , thus favoring the transition to professions, sectors and activities in the process of growth so that no worker is excluded from the labor market.

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