10 impacts of the 2021 Spanish labor reform

Key aspects

> Restrictions on fixed-term employment contracts.

> Review of training contracts.

> Reinforcement of permanent seasonal contracts (Fijo discontinuo).

> Specific termination rules for indefinite contracts in the construction sector.

> Promotion of temporary layoffs (ERTE) and promotion of training while they are in force.

>The Spanish government may activate the RED Employment Flexibility and Stabilization Mechanism.

> Determination of Collective bargaining agreements applicable to contracting and subcontracting companies.

> Company-based collective bargaining agreements can no longer lower salaries over industry-based collective bargaining agreements.

> Restoration of unlimited extended validity (ultraactividad) of collective bargaining agreements.

> Reinforcement of Workers’ representatives’ information rights and the Labor and Social Security Inspectorate’s monitoring capabilities.

> Moreover, Law 21/2021 has set limits on compulsory retirement in collective bargaining agreements.