A labor reform modifies the legislation that regulates labor relations.
A labor reform is an initiative that modifies the legislation that regulates labor relations with the aim of granting them greater flexibility .
It should be noted that the process and result of reform is known as reform . Reforming, for its part, consists of forming again or changing something .
The adjective labor , on the other hand, refers to what is linked to work (an activity carried out in exchange for some type of remuneration or remuneration).
Purpose of a labor reform
The purpose of the labor reform is to promote the creation of jobs . To this end, changes in laws are enacted in favor of employers, who must assume fewer risks or costs in hiring and firing employees. It is expected that, faced with this reality, they will take the initiative to create positions that, in another context, they would not create.
For workers, labor reforms usually imply a reduction in their rights and guarantees. However, according to certain economists, these changes ultimately result in greater dynamism in the labor market and, therefore, in greater job opportunities for employees.
Its characteristics
A labor reform can include a reduction in compensation , giving companies more arguments to justify layoffs and freeing employers from certain social charges.
Typically, a labor reform is debated between various sectors: the Government, employers and unions. Ultimately, modifications to laws must be voted on by the Legislative Branch and sanctioned by the Executive Branch .
A labor reform aims to favor the hiring of workers.
The Spanish labor reform of 2012
One of the labor reforms carried out in recent decades was the one that the Popular Party ( PP ) government decided to carry out in Spain in 2012 , thus modifying an undertaking two years earlier. Specifically, under the presidency of Mariano Rajoy , a series of new bases and principles were established, such as these:
- Dismissal for economic reasons was included without the need for losses.
- The reduction of unfair dismissal went from 45 days of compensation per year worked to 33 days and a maximum of 24 monthly payments.
- It was established that companies could establish a contract for training and internships for young people up to 30 years old.
- It included the right to 20 hours of annual training that must be paid for by the company.
- The limitation of compensation for bank executives was undertaken.
- The chaining of temporary contracts without limit was prohibited.
- It was determined that the maximum extension of expired collective agreements will be two years.
- The regulation of teleworking was finalized.
- It determined to give presence and important value to employment agencies when undertaking the placement of workers in public employment services.
These and other modifications were and are criticized by numerous sectors of society. And it is considered that what they have done has been to make dismissal easier and cheaper or allow companies to undertake the so-called ERE (Employment Regulation Files) without having labor authorization, among other things.