Labour & Employment
On February 10th, 2012, the Cabinet approved Royal Decree-Law nº 3/2012 regarding urgent measures to reform the Spanish labour market. In the short-term, the primary objective is to slow the pace of the job losses in Spain, and to lay the foundations for sustained growth and the creation of stable employment as quickly as possible. Company flexibility mechanisms have been designed and introduced to promote the preservation of employment, so that dismissal is a last resort for the employer. Notwithstanding this, external flexibility has also been modified to harmonise labour legislation on dismissals within the European Union. The labour reform also modernises collective negotiation to adapt it to the different and specific needs of companies and employees.A new era in the Portuguese labour market - FCastelo Branco & Associados
As we enter the annus horibilis of 2012, we are witnessing a significant effort by the Portuguese Government to try to overcome the crisis and to finally tackle Portugal’s Labour market, which is long due for reform.
Indicative is the new law on severance compensation for different types of employment agreements. It is based on two key pillars: i) a total severance payment of 20 days per year of service and ii) the future creation of an Employment Compensation Fund. Likewise there are new rules enabling the extraordinary renewal of fixed term employment agreements. And the Portuguese Government is also ready to review the unemployment benefits system. The outcome of these measures is unknown. However, we believe that the Portuguese Government’s legislative response will meet international expectations and show its commitment to reduce the deficit, increase competitiveness and comply with our partners’ demands.
The pressures facing Portuguese labour law - ABBC
The severe economic crisis, rising unemployment and the austerity measures resulting from the Memorandum signed between the Portuguese Government and the EC, IMF and ECB have placed great pressure upon labour legislation in Portugal. Both opinion makers and Government see the introduction of changes in labour law as a means of enhancing the competitiveness of companies and a contribution to overcome the crisis.
Where has my salary gone? - F Castelo Branco
The 2011 Portuguese budget includes a controversial pay cut to civil servants’ salaries of at least 5% to those earning more than €1,500 per month. Only time will tell if these measures will have the desired impact on the recovery of the domestic economic situation but such a blanket cut, some argue, is discriminatory – by not applying to private sector wages, possibly not even State-owned companies – and is contrary to the Portuguese Constitution. This is not a new argument. The Constitutional Court in 1989 and 1992 rejected the State budget for these years which sought to reduce teachers’ salaries and set a maximum limit for the Prime Minister’s salary.
Regardless of the legal validity, such measures will certainly not improve industrial relations or the Government’s record on compliance with the Constitution.
Spain's labour reforms: an opportunity missed again - Sagardoy
Spain’s Workers' Statute, at the time of its enactment, no doubt served a pivotal role of stability in the Spanish labour market. One of the main objectives then was to break with the previous political regime, modernising the relationship between employer and employee and establishing a collective bargaining regime that presented greater negotiating freedom to the parties and was free from outside interference.
More Articles...
- Codes of conduct: an essential preventative resource in employment relations - Nicea Abogados
- Alternatives to redundancy procedures resulting in dismissal - Sagardoy
- Dual scale of rights upheld when based on objective and reasonable grounds - Sagardoy
- Changes in the Spanish "Beckham Law", but still an attractive regime - Cuatrecasas Gonçalves Pereira
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