Spain: in 2012, nearly one third of large businesses allegedly used internal flexibility to avoid layoffs

Encouraging internal labor flexibility has been one of the primary objectives of the latest labor reform. A year after the reform came into force, the Ministry of Employment and Social Security publishes a report on the way the law is being used for promoting individual internal flexibility at company level. The report reveals that nearly a third of large companies applied internal flexibility measures as an alternative to dismissal in 2012. (Ref. 130421)
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The legal possibility of allowing companies to adjust labor input without dismissals or termination of contracts is an elementary principle underlying not only the 2012 labor reform (see article No. 120462) but also the 2010 reform (see article No. 120125). On the basis of the employment trends survey (encuesta de coyuntura laboral), this report particularly reviews the application of individual internal flexibility measures as opposed to collective measures. According to this survey, which po

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