Despite the current government's labor reforms, guidelines are as strict and cumbersome as they were at the beginning of its term. In total, there are 16 types of hiring contracts that a company has to wrestle with as they hire and fire workers. The complication of the system is surely a hindrance to economic recovery, and many international institutions agree.
For this reason, Mariano Rajoy has consulted with various advisors about the best solution to alleviate Spain's labor pains. And their response coincides with what businesses have demanded over the past few months: contracts that provide up to 20 days of severance for laid-off workers and authorize voluntary termination of collective agreements.
Economic experts consulted by the PP told elEconomista that simplifying the contracting system would only affect permanent contracts. They advised that Spain's next president could create a new contract that provides 20 days of severance pay for employees who have worked at least a year at a maximum of 12 months of severance.
