The
Government
is studying the possibility of once again prohibiting
objective dismissals
, as it did during the pandemic, to prevent
the impact of the
price war from
ending up affecting employment levels
and to dissuade companies from opting for this route to reduce costs, according to what Efe has advanced this Thursday.
What does this prohibition mean in practice?
Although the Ministry of Labor uses the expression "prohibition", in reality
firing would continue to be allowed
just as it was during the pandemic.
However, an objective dismissal for economic reasons cannot be considered appropriate.
For this reason, before a dismissal of these characteristics that the worker will not accept, it
will be a Court that decides whether the dismissal should be declared null
-and the company would have to reinstate the worker- or if it should be processed as unfair
dismissal
.
For the worker what does it mean?
It implies
greater protection
, in the sense that the company is dissuaded from laying off workers because it will be more expensive, but it does not prevent them from being fired.
If the dismissal is declared
unfair
, the worker will be compensated with
33 days per year worked
(and
45 days
for the period worked before February 12, 2012, when the labor reform was approved).
Fair dismissal
entails
much lower compensation:
20 days per year worked.
And for the company?
It will be more expensive
for the company to
do without a worker.
The objective of the measure is that instead of trying to cut costs through employment, companies look for
other alternatives
.
This policy, during the pandemic, was accompanied by a reinforcement of the Temporary Employment Regulation Files (
ERTE
), which were very advantageous for companies as they were exempt from paying Social Security contributions.
At a macroeconomic level,
the Government was more interested in ERTE than layoffs
because, although the cost of paying the unemployment benefit is the same, those affected by ERTE do not count as unemployed but as affiliated with Social Security.
Will companies be able to use ERTEs now too?
With the labor reform, the Government enabled
a new ERTE model, called the RED Mechanism,
for sectors that had not recovered their level of activity.
This model, however, has to be activated by the Council of Ministers and to date it
only contemplates using it for travel agencies
.
In fact, the Minister of Social Security, José Luis Escrivá expressly refused to activate them for any other sector.
However, the unions are pressuring the Executive to also activate it for companies affected by the collateral effects of the war, a measure that could also go ahead.
Which companies may be considering laying off?
The rise in the prices of electricity, gas and fuels has caused an
expansionary wave in all economic sectors.
Many areas of the
industry
have been forced to
stop their production
-and put their workers in an ERTE- due
to rising costs
, while
agri
-food companies are suffering from the transport strike and shortages, which in many cases also it has already led them to dispense with the workers.
When will this measure be approved?
The Government will approve next Tuesday,
March 29,
a
shock plan
to deal with the consequences of the war and promote a drop in prices.
As the Minister of Labor, Yolanda Díaz
, advanced this Thursday
, the plan will include a
package of labor measures
that could include this prohibition.
Conforms to The Trust Project criteria
Know more
Social Security
Minister council
Yolanda Diaz
ERTE
job
DismissalsWork considers re-banning dismissals due to the impact of the war on employment
New ERTEsThe Government rules out a RED mechanism for Spanish companies affected by the war
Strike Labor inspectors stand before Yolanda Díaz and will strike on March 30: "We are on the verge of failure"
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