Employment in Spain 2007

The Spanish economy has continued to show steady economic growth, although this has been accompanied by consumer price inflation that remains persistently above the EU average. There are also concerns about the immediate outlook, with possible weakness in the housing market. Spain’s labour market is marked by a very high rate of temporary employment, which accounts for around one-third of all jobs. This has been seen as related to strict rules and the cost of dismissal, which deters full-time permanent hiring. This has worried policymarkers, who have recently devoted efforts to fostering permanent employment through a number of measures. All these trends have been reflected in legislative initiatives taken during 2006/7.

Major recent legislative initiatives have included:

• A legislative package to promote greater participation in paid employment of women and other groups at risk of exclusion, including people with disabilities.

• A range of measures to promote greater sex equality and directly tackle issues such as sexual harassment. The new law, which came into force during 2007, requires firms with more than 250 employees to prepare an equality plan. All collective agreements also need to include such a plan. This must address such issues as: training and development, pay inequality, improving work-life balance, working hours, and sexual harassment.

• Bidders for public contracts need to include an assessment of the implications of the implementation of a contract for equal opportunities on the labour market.

• Legislation in force in 2007 provides for paternity leave on a statutory basis for the first time.

As well as context and detail on rules on hiring, dismissal, employment contracts, and employee relations, the IDS International Employment Guide to Spain also draws on an analysis of a wide range of current collective agreements to offer a unique picture of terms and conditions in a large number of named companies and industries, in some cases with agreed pay increases for 2008.

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