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Guide to Legislative Royal Decree 3/2012, of 10th february, on urgent measures to reform the employment market

16 de febrero, 2012

Gómez-Acebo & Pombo Employment Area



Legislative Royal Decree 3/2012, of 10th February, on urgent measures to reform the employment market, was enacted on 12th February 2012, leaving aside the hyperbole used by its supporters or detractors to highlight its virtues or deficiencies, it represents a highly relevant, brave, complex and polemic rule. Here, we will make a preliminary and urgent approximation to the 64 pages of the BOE [Spanish Official Gazette] (35,525 words 189.440 characters), in which we will try to highlight those aspects that appear most relevant for companies, without breaking down the entire content of the rule.
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1. Support for Small and Medium ,Companies
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LRD 3/2012 considers that these companies find the greatest difficulty in meeting employment obligations and bears in mind their size to make some of them less onerous:
— <, 250 employees: significant reductions in contributions in training contracts.
— <, 50 employees: open-ended employment contract to support entrepreneurs, with the possibility of fiscal incentives and bonuses in contributions, which will also apply to the conversion of temporary contracts into open-ended ones.
— <, 25 employees: rationalisation of FOGASA’s responsibility, which is limited to restitution of a part of compensations for the termination of open-ended contracts that have not been declared unfair.

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