URGENT MEASURES TO PROMOTE YOUTH EMPLOYMENT, PROMOTE EMPLOYMENT STABILITY AND MAINTENANCE OF THE PROFESSIONAL REQUALIFICATION PROGRAM

 

The BOE of August 30, 2011, has published Royal Decree-Law 10/2011 of August 26, on measures related to employment. The summary of the aforementioned normal is as follows:

1.- Creation of a new training and learning contract.

Object: Provide professional qualifications to young people who lack it and carry out effective work directly related to the training they are receiving, since according to the Government, 60% of unemployed people under 25 years of age do not even have a degree in Compulsory Secondary Education and a good number of them, even having it, lack any professional qualification, therefore the worker must receive the training inherent in the contract for training and learning directly in a training center.

Recipients: As we have already mentioned, the new contract is aimed at young people over 16 and under 25 years of age who lack professional qualifications. Temporarily it can be celebrated with young people under 30 years of age. In the case of people with disabilities there is no age limit.

Quota bonuses for transformation into indefinite: Companies that, once the training and apprenticeship contract has ended, transform it into a permanent contract, will be able to enjoy a reduction in the company's Social Security contribution of:

• €1,500 annually, for 3 years.
• €1,800 annually, for 3 years in the case of women.

Training: The worker must receive timely training in a training center recognized by the National Employment System. The work activity must be related to the training received.

Hiring bonuses until December 31, 2013: Companies that hire workers over 20 years of age, registered as job seekers prior to August 16, 2011, may reduce their social contributions by the percentages shown throughout the duration of the contract, provided that the hiring involves an increase in personnel in the company:

• 100% In companies with staff of less than 250 workers.
• 75% In companies with a workforce of 250 or more workers.

Likewise, in contracts for training and learning, workers will be exempt from paying their Social Security contributions throughout the term of the contract.

2.- Capitalization Fund.

During the first half of 2013, the Government will develop a negotiation process with business and union organizations on the convenience and opportunity of approving a bill that, without increasing business contributions, regulates the constitution of a Capitalization Fund for workers, maintained throughout their working life, for an amount equivalent to a number of days of salary per year of service to be determined.

The regulation will recognize the right of the worker to make effective the payment of the amounts accumulated in his favor in the Capitalization Fund, in the event of dismissal, geographical mobility, training activities or at the time of retirement. The compensation to be paid by the employer in the event of dismissal will be reduced by a number of days per year of service equivalent to that determined for the constitution of the Fund.

3.- Temporary suspension of the application of article 15.5 ET
The provisions established in article 15.5 ET will be suspended for the two years following the entry into force of this Royal Decree-Law, as the Government understands that this measure may be negatively affecting the maintenance of employment, which recommends its temporary suspension.

“Workers who, in a period of thirty months, have been hired for a period of more than twenty-four months, with or without continuity, for the same or different job positions with the same company or group of companies, through two or more temporary contracts, either directly or through their provision by temporary employment companies, with the same or different contractual modalities of fixed duration, will acquire the status of permanent workers.”

4.- Extension of the professional requalification program for people who exhaust their unemployment protection.

The application of the provisions of article 2 of Royal Decree Law 1/2011 of February 11, on urgent measures to promote the transition to stable employment and the professional requalification of unemployed people, is extended for 6 months. That is, the program that combines training and help for the unemployed who have exhausted their benefits is extended. People who are registered as unemployed between August 16, 2011 and February 15, 2012 will be beneficiaries of the extension of this program.

5.- Protection for cessation of activity of self-employed workers.

Section 1 of article 7 of Law 32/2010, of August 5, which establishes a specific protection system for cessation of activity of self-employed workers, is modified, which is worded as follows:

"Such recognition will mean the birth of the right to enjoy the corresponding economic benefit, as of the first day of the month immediately following that in which the event causing the cessation of activity occurred. When the economically dependent self-employed worker has ended his relationship with the main client, in order to have the right to enjoy the benefit, he will not be able to have activity with other clients from the day on which the collection of the benefit begins."

That is, the right to enjoy the corresponding financial benefit is brought forward to the first day of the month immediately following the one in which the event causing the cessation of activity occurred.

6.- Salary Guarantee Fund.

Within the framework of the Governing Council of the Salary Guarantee Fund, the Government and the most representative business and union organizations will proceed to evaluate the financial situation of the organization, taking into account the evolution of its income and expenses.

The BOE of August 30, 2011, has published Royal Decree-Law 10/2011 of August 26, on measures related to employment. The summary of the aforementioned standard is as follows:     1.- Creation of a new training and learning contract.     Objective: Provide professional qualifications to young people who lack it and carry out effective work directly related to the training they are receiving, since according to the Government, 60% of unemployed people under 25 years of age do not even have a degree in Compulsory Secondary Education and a good number of them, even having it, lack any professional qualification, therefore the worker must receive the training inherent in the contract for training and learning directly in a training center.     Recipients: As we have already mentioned, the new contract is aimed at young people over 16 and under 25 years of age who lack professional qualifications. Temporarily it can be celebrated with young people under 30 years of age. In the case of people with disabilities there is no age limit.     Quota bonuses for transformation into permanent: Companies that, once the training and apprenticeship contract has ended, transform it into permanent will be able to enjoy a reduction in the corporate Social Security contribution of:     ·        €1,500 per year, for 3 years.     ·        €1,800 per year, for 3 years in the case of women.     Training: the worker must receive timely training in a training center recognized by the National Employment System. The work activity must be related to the training received.     Hiring bonuses until December 31, 2013: companies that hire workers over 20 years of age, registered as job seekers prior to August 16, 2011, may reduce their social contributions by the percentages shown throughout the duration of the contract, provided that the hiring involves an increase in personnel in the company:      ·        100% In companies with staff of less than 250 workers.     ·        75% In companies with a workforce of 250 or more workers.     Likewise, in contracts for training and learning, workers will be exempt from paying their Social Security contributions throughout the term of the contract.     2.- Capitalization Fund.     During the first half of 2013, the Government will develop a negotiation process with business and union organizations on the convenience and opportunity of approving a bill that, without increasing business contributions, regulates the constitution of a Capitalization Fund for workers, maintained throughout their working life, for an amount equivalent to a number of days of salary per year of service to be determined.     The regulation will recognize the right of the worker to make effective the payment of the amounts accumulated in his favor in the Capitalization Fund, in the event of dismissal, geographical mobility, training activities or at the time of retirement. The compensation to be paid by the employer in the event of dismissal will be reduced by a number of days per year of service equivalent to that determined for the constitution of the Fund.           3.- Temporary suspension of the application of article 15.5 ET     The provisions established in article 15.5 ET will be suspended for the two years following the entry into force of this Royal Decree-Law, as the Government understands that this measure may be negatively affecting the maintenance of employment, which recommends its temporary suspension.     “Workers who, in a period of thirty months, have been hired for a period of more than twenty-four months, with or without continuity, for the same or different job positions with the same company or group of companies, through two or more temporary contracts, either directly or through their provision by temporary employment companies, with the same or different contractual modalities of fixed duration, will acquire the status of permanent workers.”           4.- Extension of the professional requalification program for people who exhaust their unemployment protection.      The application of the provisions of article 2 of Royal Decree Law 1/2011 of February 11, on urgent measures to promote the transition to stable employment and the professional requalification of unemployed people, is extended for 6 months. That is, the program that combines training and help for the unemployed who have exhausted their benefits is extended. The beneficiaries of the extension of this program will be the people who are registered as unemployed between August 16, 2011 and February 15, 2012.           5.- Protection for cessation of activity of self-employed workers.     Section 1 of article 7 of Law 32/2010, of August 5, which establishes a specific protection system for cessation of activity of self-employed workers, is modified, which is worded as follows:     "Such recognition will mean the birth of the right to enjoy the corresponding economic benefit, as of the first day of the month immediately following that in which the event causing the cessation of activity occurred. When the economically dependent self-employed worker has ended his relationship with the main client, in order to have the right to enjoy the benefit, he will not be able to have activity with other clients from the day on which the collection of the benefit begins."     That is, the right to enjoy the corresponding financial benefit is brought forward to the first day of the month immediately following the one in which the event causing the cessation of activity occurred.     6.- Salary Guarantee Fund.     Within the framework of the Governing Council of the Salary Guarantee Fund, the Government and the most representative business and union organizations will proceed to evaluate the financial situation of the organization, taking into account the evolution of its income and expenses.    Discharge Royal Decree-Law 10/2011 of August 26, on urgent measures  
"Your Mutual - Quality and Service, 365 days a year"