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Spain — Minister proposes to make temporary employment more expensive to employers

05 February 2010

Celestino Corbacho (Socialist), Minister for Employment, will today present his proposals on how to push permanent employment over temporary employment to the Spanish Council of Ministers, El Pais reports.

The Ministry of Employment wants to make it more expensive to sack a temporary employee and at the same time reduce the cost involved in sacking a permanent employee. This way, the Ministry feels that it will become more attractive for a company to hire people on a permanent basis.

The Minister also proposes to adopt the so-called 'German Model' of reduced working hour schemes whereby permanent employees are kept on during times of crisis at reduced working hours per week, paid accordingly less and the government subsidises part of the income loss. This is seen as another measure to strengthen permanent employment in the country.



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