The Spanish government has reached a draft law with unions UGT and CCOO to reform unemployment protection. The proposed reform aims to benefit workers, especially women who were disadvantaged under previous regulations. While the government was unable to secure support from CEOE and Cepyme, they remain hopeful of a tripartite agreement.
The reform will affect both benefits and subsidies collected when the benefit is exhausted or if one is not entitled to it. It 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. This encourages job seekers to re-enter the workforce, which is especially important for long-term unemployed individuals over 52 years of age.
However, employers’ associations expressed dissatisfaction with the lack of negotiation and presentation of an economic report accompanying the reform. The absence of an economic memory in the proposal raises concerns about its impact amidst the extension of the General State Budgets. Despite this, the government remains committed to fighting long-term unemployment and ensuring full access to European funds.
The draft law has undergone revisions following an initial rejection by Congress in January. Changes focus on maintaining a Social Security premium of 125% for subsidies to individuals over 52 years of age. The government is working towards ensuring this norm is approved in Congress in a timely manner so that Spain can access European funds by May 20th. However, meeting this deadline may be challenging due to parliamentary processing deadlines, but failing to meet it could jeopardize Spain’s access to the fourth payment of European funds.
Overall, this reform reflects a commitment from the Spanish government towards improving unemployment protection for workers while also encouraging job seekers to re-enter the workforce.
In summary, Spain’s government has agreed on a draft law with unions UGT and CCOO aimed at reforming unemployment protection in Spain. The proposed changes aim
