Key Developments for 2017

New labour reforms in relation to bargaining

All bargaining processes initiated from April 2017 will be subject to the new regulations.

Additional bills currently under discussion

In addition, there are a number of new bills currently under discussion which cover the following:

  • A proposed 1% quota of disabled employees in companies with more than 200 employees.
  • Special severance pay in case of termination of fixed term or project-based contracts: 2.5 times their daily salary per month worked if more than 15 days.
  • Legal severance in case of termination due to death of the employee.
  • Multiple functions: a company hired to perform any function must only perform functions of that kind and not any other.
  • Outsourcing: prohibition on outsourcing the main function of the company.

Key Developments for 2016

Enactment of labour reforms impacting the unions and the collective bargaining process

There was a new prohibition on employers replacing employees on strike (even with in-house employees) and the requirement of an agreement between the employer and the union to extend the CBA’s benefits to non-unionized employees.

Increase in employment litigation claims for discrimination and infringement of fundamental rights

Following the introduction a few years ago of a special procedure claims in relation to the infringement of fundamental rights and discrimination have increased greatly.

With thanks to Paulina Miranda of Philippi Prietocarrizosa Ferrero DU & Uría for her invaluable collaboration on this update.