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The ETT concentrate 60% of the permanent discontinuous contracts after the labor reform

Date: March 29, 2024 Time: 03:54:38

The social agents decide to keep the discontinuous permanent contract in the 2021 labor reform as a way to reduce the temporary employment of the Spanish labor market, while giving companies an alternative, given the restriction of temporary hiring. Employers and unions agreed on five types of discontinuous fixed agreements, one of them for Temporary Employment Agencies (ETT) to formalize the hiring of workers who will later transfer to a second company. Until the approval of this law, a Supreme Court ruling prevented these companies from resorting to the figure of discontinuous landlines, so these have grown uninterruptedly since the beginning of 2022. In February 2023, the ETT already concentrated 60 % of permanent discontinuous contracts.

The discontinuous fixed contract was not devised at this table, rather it existed before, but its use was practically anecdotal. In its place, the ETT and the rest of the companies resorted to contracts ‘by work or service’, which were the main temporary contracting tool and represented 43% of the signatures each month. However, the text approved by the Ministry of Labor and Social Economy ended this figure and restricted temporary agreements to “production circumstances” for which they must take into account “occasional, foreseeable situations that will have a short duration and determined “. In addition, the reform incorporated a series of limitations that transferred these workers to discontinuous permanent ones.

This significant increase led Yolanda Díaz’s portfolio to launch a campaign of the Labor and Social Security Inspection (ITSS) focused on Temporary Work Companies in March. The ministry wanted to put an end to any type of fraud that could be registered through temporary contracts or discontinuous permanent ones. On the one hand, the Labor team feared that some of these companies were committing legal fraud by resorting to temporary contracts beyond the transition period in the recognized labor reform. And, on the other hand, they claimed to have “indications” of fraud in intermittent permanent workers, who in some cases were active for practically the entire year, for which reason they failed to be regular permanent workers.

The ITSS focused on 45,000 labor relations with “informative” letters, almost a quarter of all Social Security affiliates through an ETT. For the moment, the Inspectorate has not made public the result of this action. However, the data produced by the last campaign of these characteristics was not positive at all. The Labor agency carried out in 2022 a campaign to control discontinuous permanent contracts, this time extending the siege to all companies. By then, there were 56,525 workers with this type of contract and more than 26,000 were in an irregular situation, according to the ITSS, up to 47% of the total.

As reported by the director of the Inspection, Carmen Collado, the main problem detected was that a large part of these workers had 10.5-month agreements, which is practically equivalent to the effective period of an ordinary permanent employee, but instead of enjoying vacations like the rest of the workers, they were sent to inactivity. In other words, they became entitled to receive unemployment benefits at zero cost to the employer. This type of infraction can lead to sanctions of up to 10,000 euros for each worker hired fraudulently.

Doubts about the reduction of “real” temporality

The changes introduced in the labor reform have managed to reduce temporary employment, as reflected in the Active Population Survey (EPA) and Social Security affiliations. Temporary employment in the private sector has fallen from 25% to 17%, thanks to a drastic drop in this type of hiring and a marked increase in permanent firms, in contrast. In this year and a half, 2.8 million permanent jobs have been created -according to Social Security data- of which only 21% are intermittently permanent. For the Ministry, this change provides greater stability to employees, since they have a consolidated employment relationship despite altering periods of inactivity. In which, in addition, you can access the unemployment benefit.

However, Fedea, the study center associated with CEOE, has questioned whether this reduction in macro temporality has a “real” or “effective” transfer. The researchers specialized in employment, Florentino Felgueroso and Marcel Jansen have pointed out this Tuesday that this move to permanent contracts does not provide greater certainty to the worker, since he still does not know the number of hours he will work and, consequently, what remuneration he will obtain each month . Consequently, this change has not contributed to an increase in the intensity of work and in the productivity of the Spanish labor market, which in 2022 fell again, to 91.8 compared to 100 media in the EU.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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