The Minister for Labour, Jesus Caldera, wants to transform 500,000 fixed term contracts into permanent contracts by the end of the year by way of a "shock plan against job precarity". These first measures fall within the framework of the reform of the labour market negotiated by the social partners and the government (see our comment n°06472) and represent a genuine revolution in the hiring policy, common in Spain, where the rate of insecurity reaches 33%. (Ref. 06710)
An incentive based on provisional public grants. To give an incentive to the transformation, the Minister sent out mails reminding companies who make regular use of temporary contracts, only to occupy the same posts after more than two years, that the continued renewals of fixed term contracts are henceforth forbidden once the new legislation on labour comes in force, which occurred on 1st July last (see our article n°06591). The letter sent by the Minister for Labour informed the employers who
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