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Spain — Temporary employment agencies' legal status to be revised

05 November 2009

The governing socialist party (PSOE) has yesterday proposed to the lower house of the Spanish parliament (Congreso), to modify the legislation which governs temporary employment agencies, la Tiza reports.

The plan is to allow temporary employment agencies to get involved in areas they are currently barred from, such as permanent employment and sectors like the construction industry, the public sector and the health service.

The Association of Large Temporary Employment Agencies (Agett) has many times suggested that temporary employment agencies should be able to become the private version of the National Labour Office (INEM).
The European Confederation of Private Employment Agencies (Eurociett) has said in the past that if the restrictions on Spanish temporary employment agencies were lifted 180,000 jobs could be created in Spain over the next five years.

Since the Spanish National Labour Office appears to be concentrating largely on administering the unemployed and has not even managed to find jobs for 5% of the almost 4 million Spanish unemployed, the government has decided to become pragmatic and place the new proposals before parliament.

However, according to market research firm DBK the turnover of Spanish temporary employment agencies is expected to be down by -30% in 2009 due to the economic crisis and an anticipated 1.5 million less temporary employment contracts will have been signed by the end of this year. The question is therefore whether new legislation can change much in times of economic crisis.



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