The process and result of reform is known as reform. Reform, for its part, consists of form again or change something.
The adjective labor, on the other hand, refers to what is linked to job (An activity that you carry out in exchange for some kind of remuneration or remuneration).
With these definitions, we can develop the idea of labour reform. It is a initiative what modifies the legislation that regulates labor relations with the aim of granting them a greater flexibility.
The purpose of the labor reform is to favor the creation of jobs. To this end, changes in the laws are enacted in favor of employers, who must assume fewer risks or costs to hire and fire employees. It is expected that, faced with this reality, they will take the initiative to create positions that, in another context, they would not create.
For workers, labor reforms often mean cutting their Rights and guarantees. However, according to certain economists, these changes ultimately result in greater dynamism in the labor market and, therefore, in greater job opportunities for employees.
A labor reform may include a reduction in the compensation, give more arguments to Business to justify layoffs and relieve employers of certain social charges.
Typically, a labor reform is debated among various sectors: the Government, employers and unions. Ultimately, amendments to the laws must be voted on by the Legislative power and sanctioned by the Executive power.
One of the labor reforms carried out more recently was the one that the PP government decided to carry out in Spain in 2012, thus modifying the attack two years earlier. Specifically, under the presidency of Mariano Rajoy, a series of new bases and principles were made, such as these:
-The dismissal for economic reasons without the need for losses was included.
-The reduction in unfair dismissal went from 45 days of severance pay per year worked to 33 days and a maximum of 24 monthly payments.
-It was established that companies could establish a contract for training and internships for young people up to 30 years of age.
-It included the right to 20 hours of annual training that must be paid for by the company.
-The limitation of the compensation of bank managers was undertaken.
-The chaining of temporary contracts without limit was prohibited.
-It was determined that the maximum extension of expired collective agreements will be two years.
-Regulation of telework was undertaken.
-Determined to give presence and an important value to the employment agencies when undertaking the placement of workers in the public employment services.
These and other modifications were and are criticized by many sectors of society. And it is considered that what they have done has been to facilitate and lower the cost of dismissal or allow companies to undertake the so-called ERE (Employment Regulation Files) without having labor authorization, among other things.