The Spanish Labour Market may be affected by the fall in the unemployment rate. The latest data on the unemployment rate puts it below 15%. To be exact by 14.55%. Data referring to the third quarter of 2018 (INE press release). This is the first time this has happened since 2008. Therefore it is good news.
This figure, in addition to the positive social impact, has consequences on certain measures of the Spanish Labour Market which were approved during the crisis and which are accompanied by a level of unemployment above 15%.
However, the Ministry of Labour does not foresee an immediate change in the face of these data provided by the INE. Sources from this organisation state that they are going to analyse the situation and transfer their conclusions to the social dialogue, as these data may change and exceed 15%. This is probable as the worst seasons begin for the Spanish Labour Market. Therefore, in principle, the measures are still in force and will thus be transferred to the offices of the Public Employment Service.
Spanish Labour Market. Measures that can be modified.
The measures subject to unemployment being above 15% in terms of hiring that may be affected are the following:
Entrepreneurs’ contract.
This contract was created in Law 3/2012 of 6 July. The well-known labour reform and, a main factor for the Constitutional Court to give its approval, before the multiple appeals of anti-constitutionality that were presented, mainly due to the extension of the trial period (12 months) was its link to the unemployment rate being above 15%.
This contract can only be established for companies with fewer than 50 employees. It includes both tax incentives and discounts on Social Security contributions.
Training contract.
This contract is designed for employees without official qualifications who recognise professional qualifications from the vocational training system. Law 3/2012 introduced improvements to this contract, such as the age of the group subject to this contract. Young people between 25 and 30 years old.
In addition to the measures of the Spanish Labour Market subject to this contract, it also affects certain benefits that were given in return for the high percentage of unemployment that existed at the time of its implementation.
Extraordinary subsidy.
This aid consists of a payment of 426€ that the unemployed person receives, charged to the Public Employment Service. But for half a year and once other benefits and subsidies have been exhausted and he does not have a certain level of income.
If the unemployment rate drops by 15%, it will automatically stop being extended. Since these programs are valid every six months, the next one will expire on January 4.
Therefore, we will have to wait and see if these unemployment figures are consolidated below 15%.
For any doubt about this kind of contracts and its application in your company, do not hesitate to contact us, we will help you in everything you need.
Arrabe Integra
Labour Department and Human Resources Management.
