The government has reached an agreement with unions UGT and CCOO on a draft law to reform unemployment protection in Spain. This reform aims to protect a wider range of individuals and increase the level of support provided, including simplifying access to subsidies and making benefits compatible with employment, encouraging job seekers to re-enter the workforce.
The draft law will now be processed in the Congress of Deputies with the objective of being approved promptly, allowing Spain to access the fourth payment of European funds. However, the reform has faced opposition from employers’ associations due to a lack of negotiation and presentation of an economic report accompanying it. The absence of an economic memory in the proposal raises concerns about its impact amidst the extension of General State Budgets.
The second vice president and Minister of Labor, Yolanda Díaz, clarified that the reform is not about mere money but rather ensuring the rights of workers. She stated that this reform is aimed at benefiting workers, especially women who were disadvantaged under previous regulations. While the government was not able to secure support from CEOE and Cepyme, they remain hopeful for a tripartite agreement.
The government is committed to fighting long-term unemployment, especially affecting those over 52 years old. The changes made following an initial rejection by Congress in January include maintaining a Social Security premium of 125% for subsidies to individuals over 52 years old. The government is working towards ensuring this norm is approved in Congress in a timely manner to access European funds before May 20th or risk jeopardizing Spain’s access to the fourth payment of European funds.
