Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Seven African countries' economies at risk over Brexit decision

Read more

THE DEBATE

Britain votes out: What next?

Read more

#TECH 24

The 'fintech' revolution

Read more

FRANCE IN FOCUS

A certified 'palace': How hotels strive for excellence

Read more

#THE 51%

In her own image: Women in Art

Read more

REPORTERS

World War I: When northern France was on German time

Read more

REVISITED

Video: Ugandan city still scarred by Lord's Resistance Army atrocities

Read more

MEDIAWATCH

#Brexit sparks a storm on social media

Read more

BUSINESS DAILY

Markets, pound plunge on Brexit vote

Read more

Europe

Spain approves tough labour market reforms

Text by News Wires

Latest update : 2012-02-10

Spain's new government announced Friday that it would cut employees' maximum severance pay from 45 days to 33 days' salary for each year of employment. Employment Minister Fatima Banez said the goal was to stem unemployment.

AFP - Spain's right-leaning government slashed employees' maximum severance pay in a sweeping labour reform unveiled Friday to confront a near 23-percent unemployment rate.

Severance pay falls to a maximum of 33 days' salary for each year of employment from the previous level of 45 days, Employment Minister Fatima Banez told a news conference after ministers agreed a draft decree.

"The government's goal is to fight joblessness and stem unemployment," she said.

The previous Socialist government, ousted in November 20 elections by the Popular Party, had introduced a new contract with a 33-day-a-year maximum severance and just 20 days for financially-motivated layoffs.

But the new contract, introduced in July 2010, was rarely used and the traditional contract offering 45 days a year in compensation for lay offs remained the norm.

"The goal is to make it easier to hire new workers in our country, especially the young and long-term unemployed," Deputy Prime Minister Soraya Saenz de Santamaria told the news conference.

Date created : 2012-02-10

  • EUROZONE

    Fitch ratings downgrades five eurozone nations

    Read more

  • MARKETS

    Eurozone bond yields weigh on global stocks

    Read more

  • FINANCE

    Spain, France borrowing costs raise contagion alarm

    Read more

COMMENT(S)