In March 2023, the New Employment Law came into effect, incorporating measures aligned with the needs of the labor market and the European business context. It is characterized by convergence across different areas of concern for all stakeholders, the swift action of administrations, resilience to new scenarios such as the previous pandemic, and digital transformation.
The new Employment Law is based on a more global model, attentive to the characteristics of the European framework, aiming to carry out structural reforms in the coming years that involve regulatory changes and investments. For this purpose, the financial resources from the European Recovery Fund received in Spain will be directed to implement new public policies that promote a more dynamic, equitable, inclusive, sustainable labor market and reduce youth unemployment rates.
What challenges does the new Employment Law address?
This regulation includes six titles, each dedicated to employment policy, addressing the main challenges that must be tackled urgently to reactivate the country's economy through quality employment. Some of the most important and urgent goals are:
- Reducing structural unemployment and youth unemployment.
- Ending the succession of temporary contracts and the instability they generate.
- Improving competitiveness of human capital.
- Modernizing mechanisms for collective bargaining.
- Increasing the effectiveness and efficiency of public employment policies.
- Contributing to the updating of resources and training necessary to implement new digital tools.
- Implementing measures that promote gender equality in companies to eliminate pay and treatment disparities.
- Establishing measures that respect workers’ work-life balance.
Key points of the new Employment Law 2023
The new Employment Law establishes the framework for public employment policies, regulates all structures, distributes services and resources, and creates programs integrated into the National Employment System. From this law, nine objectives stand out that differentiate it from previous employment laws:
- The Minimum Interprofessional Wage is non-seizable: this means that in months with double pay, the non-seizable amount is twice the minimum wage. This modifies Article 27 of the Workers’ Statute.
- Mandatory but non-binding report from the labor inspection in collective dismissals: the inspection must address the specific causes the company alleges to justify the dismissal.
- Right not to be discriminated against: a key objective of this law is to improve and promote inclusion. This focuses on non-discrimination by public or private services based on language, race, religion, culture, or nationality within Spain.
- Establishment of governance bodies of the National Employment System, composed of: the Sectoral Conference on Employment and Labor Affairs, and the General Council of the National Employment System.
- Development of the Spanish Strategy for Active Employment Support
: using tools such as the Annual Plan for the Promotion of Decent Employment and the Integrated Public Employment Services Information System.
- The Spanish Employment Agency will replace SEPE: private placement agencies will collaborate with the corresponding public services of each autonomous community. This also serves as a control mechanism to continue promoting inclusion.
- A catalog of guaranteed services will be implemented for job seekers, companies, and other employing entities. Services range from personalized training for each job seeker to entrepreneurship training and support for companies undergoing digital transformation.
- A regulation to measure the effectiveness of placement agencies will be developed, considering data such as the number of people served, job offers posted, reduction of the gender gap, and successful placements.
- Expansion of priority groups so that employment aids and measures are distributed according to new needs. This includes people over 45, employees in sectors undergoing digital transformation, LGTBI individuals (particularly trans), people with disabilities, intellectual disabilities, autism spectrum disorders, and victims of gender-based violence.
- The new Employment Law also aims to promote functional and sectoral mobility of employees, facilitating transitions to growing professions, sectors, and activities so that no worker is excluded from the labor market.
Finally, it is important to mention the emphasis on gender perspective included in this law to promote equal labor conditions and opportunities. Want to continue learning about updates in the labor and business environment? Subscribe to the Educa.Pro newsletter!
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