Last March 2023, the New Employment Act came into force, incorporating measures in line with the labour market needs and the business environment at European level, characterised by convergence on the various issues of concern to all stakeholders, by the speed with which public authorities take action, by resilience in the face of new scenarios – such as the recent pandemic – that may arise, and by digital transformation.
The new Employment Act is based on a more comprehensive model, taking into account the characteristics of the European framework, with a view to implementing structural reforms in the coming years that will entail regulatory changes and investment. To this end, the financial resources from the European Recovery Fund received by Spain will be channelled towards implementing new public policies that promote a more dynamic, equitable, inclusive and sustainable labour market and reduce youth unemployment rates.
What challenges does the new Employment Act address?
This regulation comprises six sections, each devoted to employment policy, which address the key challenges that must be tackled as a matter of urgency in order to revive the country’s economy through quality employment. Some of the most important and urgent objectives are:
- Reducing unemployment structural unemployment and youth unemployment.
- Putting an end to the succession of fixed-term contracts and the instability that this causes.
- Improving competitiveness human capital.
- Modernising the mechanisms for the collective bargaining.
- Improving effectiveness and efficiency of public employment policies.
- To contribute to the resource updates and trainingn required to implement the new digital tools.
- Introduce new measures that promote gender equality within companies to eliminate pay and treatment disparities.
- To put in place measures that respect the work-life balance of the workers.
Key points of the new Employment Act 2023
The new Employment Act establishes the framework for the organisation of public employment policies, regulates all relevant structures, allocates both services and resources, and creates programmes that form part of the National Employment System. Nine objectives can thus be highlighted in this new legislation that distinguish it from previous employment laws:
- The The National Minimum Wage is exempt from attachment: this means that, in months when double pay is due, the amount exempt from attachment is twice the minimum wage. This measure is one of those amending Article 27 of the Workers’ Statute.
- A mandatory but non-binding report from the labour inspection in the event of collective redundancies: The investigation must be resolved on the basis of the specific grounds put forward by the company to justify the collective redundancy scheme.
- The right not to be discriminated against: one of the main objectives of this new law is to improve and promote inclusion. This provision focuses on preventing discrimination by public or private services on the grounds of language, race, religion, culture or nationality within Spain.
- The following are established: governing bodies of the National Employment System, comprising: the Sectoral Conference on Employment and Labour Affairs, and the General Council of the National Employment System.
- The Spanish Strategy for Active Employment Support is being developed: To this end, tools such as the Annual Plan for the Promotion of Decent Employment and the Integrated Public Information System for Employment Services are used.
- The Spanish Employment Agency will replace the SEPE: Under the new law, private employment agencies will collaborate with the relevant public services in each autonomous community. This will also serve as a monitoring mechanism to ensure that inclusion continues to be promoted.
- A catalogue of services is being introduced guaranteed to jobseekers, individuals, businesses and other employers. These services range from providing personalised training for each jobseeker to offering training in entrepreneurship, as well as support for businesses wishing to embrace digital transformation.
- A Regulations for measuring the effectiveness of employment agencies’ activities, taking into account data such as: the number of people assisted, the job vacancies advertised, the reduction in the gender gap and the contracts secured.
- Expansion of priority groups so that employment support and measures are allocated in line with new needs. This group includes: people aged over 45; workers in sectors undergoing digital transformation; LGBTI people, particularly trans people; people with disabilities, including those with intellectual disabilities and autism spectrum disorders; and victims of gender-based violence.
- The new Employment Act also aims to functional and sectoral mobility of employees, thereby facilitating the transition into growing professions, sectors and activities, so that no worker is excluded from the labour market.
We cannot conclude this post without mentioning the gender perspective that is emphasised and which this new law incorporates in order to promote the equal working conditions and opportunities. Would you like to keep up to date and learn more about the latest developments in the world of work and business? Subscribe to the Educa.Pro newsletter!
