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The reform of Díaz’s dismissal will exclude the drop in benefits as an objective cause

Date: July 14, 2024 Time: 14:06:34

The second vice president and Minister of Labor and Social Economy, Yolanda Díaz, confirmed this Friday her intention to reform the dismissal so that its cost in Spain adheres to European doctrine. After these modifications, the policy seeks to ensure that the dismissal “is not profitable” for companies and that compensation be established that “adequately” repairs the damage to the worker in unjustified dismissals, taking into account his personal circumstances. Díaz explained that it will be necessary to re-examine the objective causes of the dismissal, such as the worsening of business results.

During his appearance before the Senate Labor Committee, in which Díaz detailed what the fundamental lines that his Department will develop during this term of office will be, he pointed out the importance of Spain complying with the requirements of the European Social Charter and Doctrine of the European Committee of Social Rights, which will publish in July its decision on the UGT complaint against the cost of dismissal.

The vice president has also taken the opportunity to emphasize that the debate around this initiative should not focus on whether the compensation for unfair dismissal should be 45 or 33 days per year worked, but rather on whether the Spanish regulation of the cost of dismissal complies with the European legislation. “One of the problems that Spanish legislation has is that (the dismissal) does not have a dissuasive or compensatory nature, among other things because the fact of having compensation predetermined in advance is not in accordance with the law. It is not a problem of 33, of 40 or 45 days, the meaning of the compensation logic that Europe says is different,” he stated.

Reform the economic causes of objective dismissal.

To adapt the regulation to community regulations, Díaz has reiterated that he intends to introduce a mechanism so that compensation in an unfair and, therefore, unjustified dismissal, takes into account the personal circumstances of the dismissed worker on an individual basis.

“This is going to be incorporated into the doctrine of social jurisdiction, we do not comply with it in Spain and it is quite anomalous (…) This is what we are going to change, we are going to do it so that the damage caused is adequately repaired ​​​to the person unjustifiably dismissed”, he stressed.

Furthermore, Díaz wants to reinforce the causes of objective dismissal, which allows companies to be fired for economic, technical, organizational and production reasons with 20 days of salary per year worked. Current labor regulations allow for dismissal for economic reasons when the company’s results indicate a negative economic situation, in cases such as the existence of current or anticipated losses, or a persistent decrease in its level of ordinary income or sales. .

“Everything that is linked to the causes, to objective layoffs, we need to reinforce the causes. This is key. In economics you can simply lay off if a company does not reach the profit levels that it had anticipated. It is not that it has losses, but what I had foreseen. Well, some things we will have to change,” he pointed out regarding the possibility of dismissal due to a decrease in profits or anticipated losses.

Furthermore, Díaz wants to make the cost of dismissal “truly dissuasive.” “We have to dissuade companies from committing dismissals that are unjustified. If a judicial resolution says that the dismissal is unjustified, that it violated the law, we cannot allow it. And something fundamental, that a dismissal is not profitable,” he stressed. In this sense, he has denounced that “there are large companies” that, in their economic plans and accounting, estimate what it will cost them to fire workers.

Although he has stated that he cannot reveal the content of the resolution issued by the European Committee of Social Rights on the dismissal in Spain, which will be made public in July, he has insisted that “it is a source of law and, therefore, it must be fulfill it.”

Díaz has also reiterated that, thanks to the labor reform, companies have no reason to dismiss unjustifiably, since they introduce mechanisms, such as ERTE, that allow companies to be supported in difficult economic situations so that dismissal is the last resort. The minister also took the opportunity to remember that her Ministry has reached an agreement with Cermi to eliminate the automatic dismissal of people declared to be permanently disabled.

“Spain does not go like a motorcycle”

During his speech, Díaz denied having ever said that Spain “goes like a motorcycle”, words that did come out of the mouth of the President of the Government, Pedro Sánchez, in a Government control session in Congress last month of February.

“I have never said that Spain was going like a motorcycle, in my life. It’s just that I go down the street, I go shopping, and Spain doesn’t go like a motorcycle. What’s more, they criticize me many times for being in the Government of Spain and to say that we must improve. In Spain there are people who live well, fortunately, but there are people who live very badly,” he defended. The minister has also denied that there is a problem of vacancies in Spain and has pointed out that it is a “discursive” element, but not real.

Unemployment subsidy reform

During her appearance, the vice president stressed that the Government is going to address the welfare part of the protection system for unemployed people, with the reform that she already defended a few months ago before the Cortes and that declined with the vote against PP, Vox and Can.

Díaz has assured that, with this reform, the amount of the subsidy will be improved and the month of waiting, which had no reason for being, will be eliminated, as “many groups requested.” In addition, he mentions the compatibility of the work with the receipt of the subsidy.

democratization of companies with employee participation

The vice president has also assured that the Government will continue working on something “that is very old in Europe and very new in Spain”: the democratization of companies through the participation of workers in decision-making. Díaz explained that the aim is to promote a paradigm shift in business organization, focusing on medium and large companies so that there are companies that are “more solid, more powerful and that can converge with what exists in other States.”

“There are many companies that already have these models and that work much better. There is no doubt,” stressed the head of Labor. Another point that the vice president intends to promote is union and collective participation in the design, regulation and evaluation of algorithms in the workplace.

* 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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