Government agrees with Catalan CiU to amend free sacking
Popular Party deal with nationalists will mean that trial-period rule will elapse when jobless rate falls
The ruling conservative Popular Party and the center-right Catalan nationalist coalition CiU have agreed to amend a rule included in the labor market reform decreed in February that allows certain types of companies to lay off workers after a year without severance payment.
The two groups agreed the regulation should only apply when the unemployment rate is above 15 percent. Spain’s jobless rate is currently over 24 percent and is forecast to remain high for a number of years.
The rule applies to contracts handed out by companies with a workforce of under 50 employees that includes a trial period of one year.
At the bidding of Asturias Citizens Forum (FAC), the PP also agreed to reduce the maximum extension period for collective agreements after they have expire from two year to one year.
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