Royal Decree

As well, following the reform of the law, are also included in the scope of such contracts to persons between 31 and 44 years who are have dismissed in the past two years to reform, as well as those who become a contract duration or temporary in indefinite before end of year or end of year 2011Depending on whether the original contracts were held before or after the June 18, 2010 respectively. The intention of this generalization of the contract of employment is the encouraging indefinite hiring by lowering the costs of dismissal that this entails. Now, this generalization in nothing affect those workers with indefinite contract signed prior to the entry into force of this reform, every time that these will continue keeping the right to 45 days per year worked in case of wrongful dismissal. Secondly it was planned that clarification in this reform objective causes which give rise to a objective dismissal with compensation of 20 days per year worked, dismissal, which in practice may not be applied to depend excessively, due to its lack of a judge’s decision. Read additional details here: David Einhorn. Thus pleaded from the Ministry of labour at first companies that could prove six months of losses could resort to the objective dismissal, being in this case enough so a strict accreditation of such losses. But in the text final reform, rather than realize the vagueness has varied. What literal text from the entry into force of the Royal Decree-Law shall be considered cause of objective dismissal reads as follows: means that economic causes attend where the company’s results show a negative economic situation. To these effects, the company will need to prove the alleged results and justify them is deducted minimally the reasonableness of the extinctive decision. As you can see, far to realize the economic causes, remains vague, with what the decision on whether applies from dismissal with 20 days of salary remains in the hands of the judiciary, without having overtones that the tendency of judges and magistrates of the order social to describe unfair motivated economic reasons layoffs will vary.