News update as of September 22, 2017

Spain/Government proposes discussion with social partners over temporary contract with rising protection. With social partners having recommenced dialogue on Monday 18 September, the Spanish employment minister Fatima Báñez has tabled a series of proposals to combat job insecurity in the labour market. She has proposed limiting the number of contract types to three, compared to four at present: a permanent contract, a training contract and a temporary contract with rising protections. The latter contract would pay compensation equivalent to 12 days’ pay during the first year, which is the existing rate for this kind of contract, with this figure rising to 16 days in the second year, and then to 20 days in the third year, the same as the compensation paid to employees on a permanent contract. To make temporary contracts less attractive to employers, the employment minister has proposed increasing the social security contributions for unemployment paid by companies that make ample use of such contracts, and reducing such contributions for companies that offer a greater proportion of permanent contracts than their competitors. Finally, the employment minister is proposing tougher sanctions for overuse of insecure contracts without justification. The CCOO and UGT unions have been lukewarm on the proposals, without criticising them directly. Meanwhile the CEOE, the employer organisation, is opposed to any increase in social security contributions.