Spain’s leftist Cabinet on Tuesday approved a landmark labor law reform that aims to reduce the use of temporary contracts and boost job security.
The reform, agreed with unions and employers, reverses business-friendly regulations introduced in 2012 by a previous conservative government during a deep recession that followed the 2008-2009 global financial crisis.
Spain is the EU nation where the use of temporary contracts is highest, but the reform tightens conditions for their use.
The law limits most temporary contracts to three months and allows temporary hiring only under certain circumstances.
Improper use of temporary contracts is to be penalized with fines and social security penalties.
The reform also restores collective bargaining with unions as the main channel to negotiate contracts.
Under the 2012 reforms, severance pay had been cut and trade union negotiating powers had been limited.
“This is the first agreement in more than four decades that reverses the trend of workers losing rights, bargaining power and wages,” Spanish Minister of Labor, Migrations and Social Security Yolanda Diaz told a news conference after the law was passed.
“There are many women and young people in this country who have not had a contract that was not garbage in their entire lives,” she added.
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