The Government of Spain has reached an agreement with the unions UGT and CCOO on a draft law to reform unemployment protection. The proposed bill includes changes to benefits and subsidies, with the goal of making them more accessible to a broader range of individuals.
The Ministry of Labor was unable to secure the support of CEOE and Cepyme for the proposed reform, as they had concerns about certain measures. The employers issued a joint statement expressing their dissatisfaction with the lack of negotiation and economic report accompanying the reform. They accused the Government of a lack of transparency in the process and criticized the lack of a real agreement.
The draft law aims to increase the number of protected groups, simplify access to subsidies, and make unemployment benefits compatible with part-time work. The Government also commits to designing a plan to combat long-term unemployment, particularly among those over 52 years of age. The reform has undergone changes, including maintaining the 125% Social Security premium for subsidies for older workers.
However, concerns have been raised about meeting deadlines for processing the draft bill. It may be impossible to meet the May 20th deadline set by the European Commission, which could result in a partial disbursement of European funds. The Government will have another six months to approve the reform and receive full funding from European sources.
Overall, this reform seeks to improve unemployment protection in Spain by making benefits more accessible and effective for all workers.