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Companies That Exceed 15% Temporary Must Increase Staff

The Government has proposed at the table that negotiates the labor reform, not only that labor hiring can not exceed 15% per year for each company. In addition, those companies that at the end of the year have breached this precept will have to increase their workforce until the percentage is reduced below the limit.

To this end, they may choose to transform temporary contracts into permanent ones or make new hires, as reflected in the draft presented this Wednesday to employers and unions to which the Economist has had access . The text leaves open that 15% is even lower if it is agreed by labor agreement.

The draft determines that the annual workforce of the company will be understood as the result of adding, to all the employment contracts of any type in force on December 31 of each year, those that have expired during the calendar year . In relation to the latter, the working days provided during the calendar year will be divided by two hundred, each resulting unit or fraction being computed as one more contract.

According to the text presented by the Secretary of State for Employment, the companies must inform the legal representation of the workers, during the month of January, the result of the calculation of the temporary nature of the workforce , and will present a specific proposal for transformations or hiring to be carried out to comply, at least, with the applicable indefinite hiring percentage . Said transformations or contracts must be made effective before March of the corresponding year.

However, the Government clarifies that the temporary hiring that each company can arrange according to the 15% limitation will only be justified when the reasons of a productive and organizational nature concur.

By “productive reasons” it is understood the increase of the business activity that cannot be attended with the usual staff

In this sense, the Government has already stated in previous drafts that for “productive reasons” it is understood the increase in business activity that cannot be served with the usual staff of the company. As is the negotiation draft, “in no case shall the performance of work of a seasonal nature or linked to campaigns be understood as a productive cause , which must be the objective of contracting through indefinite modalities specifically provided for that purpose.” Specifically, the Government intends the generalized use of the fixed-discontinuous modality for seasonal or campaign activities.

For organizational reasons, the replacement of a person with the right to reserve the job is understood , specifying the name of the person replaced and the cause of the replacement.

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