The Spanish labour reform entered into force on 12 February 2012, containing substantial changes to the labour institutions and the employment market. The reform brings in changes to employment regulations, in some cases immediate while in other their effect will be felt in the medium to long term. Overall, the new law aims to stimulate the job market, affecting employment, the rules governing dismissal and employer flexibility, with the aim of meeting the needs emerging in light of the current financial climate.
Royal Decree-Law 3/2012, of urgent measures to reform the employment market (the “New RDL“), changes to the Spanish Workers’ Statute (Estatuto de los Trabajadores), to the Spanish Labour Act (Ley de la Jurisdicción Social), to Social Security regulations, regulations governing temporary employment agencies as well as to the Offences and Sanctions Act (Ley de Infracciones y Sanciones).
Given the broad scope of the reform, this note focuses on the most significant new provisions introduced , which have the greatest impact on the regulation of current employment relations.