Saturday, January 28, 2023

Government approves indefinite employment support scheme and temporary bonus cut

More permanent employment and less temporary. The government has set the same target for the labor market. He did this by approving labor reforms and now again, by approving a support plan for permanent employment,

The Council of Ministers approved this Tuesday Draft Law on Incentives for Labor Contract, The objective, basically, is that public aid is allocated exclusively to stable employment, not temporary employment, and to promote permanent contracts for those who have greater difficulties in finding employment. .

“With this change, the whole system of incentives and bonuses is disrupted and accommodates a single reality: incentives are going to be redirected to labor reform and job stability,” said the Second Vice President and Social Minister of Labor and Economy, announced Yolanda Díaz, during the press conference of the Council of Ministers.

On the one hand, the government This would increase the incentive for permanent contracts. for other, Will cut existing support for temporary employment,

Labor reform birthday: one year later, Spain creates permanent jobs at full speed, but with traps

Staff Waiter

New Bonus for Permanent Employment

“We’ve removed a lot of the bonuses, but We added 5 new bonusesDiaz explained.

Earlier, Díaz clarified, “The stimulus was understood as a reduction in labor costs. But it is not about that, but about improving the employability of the groups that have the greatest difficulties.”

Díaz was originally speaking to unemployed people over the age of 45 and working long hours, workers, young people and people with disabilities, among others.

In particular, there will be bonuses for promoting internship contracts for sustainable youth employmentPromoting the social economy, and converting occasional jobs in agriculture into normal stable-sustainable jobs.

For example, the government will offer a Bonus of 110 Euro per month In social contributions for the indefinite recruitment of long-term employees (those who have been unemployed for more than a year). If the employee is a woman, that bonus would be 128 Euros per month.

in the matter of indefinite recruitment of youth For companies with low qualifications, the incentive in social contribution will be 275 euros per month.

The government will evaluate each of these aids. The minister warned, “Those that work will be retained and those that we do not expect to have an impact will be withdrawn.”

help that disappears

as well as if they will take out the bonus To convert temporary contracts into indefinite ones. “There was a great bonus that included incentivizing temporary contracts to be converted to indefinite contracts with public resources. We will no longer reward temporary hiring for taking it indefinitely,” Diaz explains.

In essence, what happened was that companies received a social contribution bonus every time one of their employees went from temporary to permanent.

The problem is that it encouraged temporary hiring, not permanent contracts. “One of the workers’ complaints was that they were fired after being hired on a permanent basis,” says Díaz.

With new bonus Whoever receives the incentive will have the obligation to maintain employment for 3 years.

The elimination of bonuses for temporary contracts would save the state 280 million euros per year.

After approval in the Council of Ministers, the rule will have to be discussed in the Congress.

Nation World News Desk
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