The Government agrees to the urgent administrative procedure to regulate the incentives for hiring

MADRID, 7 Jun. (EUROPA PRESS) -

The Government has agreed this Tuesday in the Council of Ministers the urgent administrative processing of the bill to regulate the incentives for labor hiring and other measures other measures to promote and maintain stable employment.

The Ministry of Labor and Social Economy submitted the text to public consultation between September 16 and October 7, and in the document it warned of "the excessive fragmentation and dispersion of regulations that currently establish incentives for hiring or other measures of employment".

Together, these bonuses account for 25% of total spending on active labor market policies and are "to the detriment, without a doubt, of the transparency, effectiveness and efficiency of such measures."

The document exposed to public consultation also reported that the quota bonuses, charged to the expenditure budget of the Public State Employment Service (SEPE), amounted to 1,821.6 million euros in 2020.

Labor accused in these incentives "a lack of comprehensive vision" in the measures to promote employment, since in addition to state bonuses there are subsidies granted with state funds, from the autonomous communities or co-financed by the European Union.

The portfolio led by Yolanda Díaz recognized in the public consultation document that the subsidies and bonuses for hiring applied to date had failed to "solve the structural problems of the Spanish labor market" and were also "ineffective in achieving a lasting impact in the time".

The impulse of Labor to correct these deficiencies also responds to the recommendations of the Independent Authority for Fiscal Responsibility (AIReF), which in 2020 already warned that the positive effects of these policies were "modest" and recommended, among other measures, "to homogenize the requirements on the beneficiary companies".

To correct the shortcomings detected by AIReF and other analyses, the intention of the Work is to create a single legal framework, establish a common trunk of general provisions and simplify the incentives and standardize the requirements of the beneficiary companies.

It will also focus on continuously monitoring incentives and focusing them on the employability of unemployed people and for indefinite contracts, as appears in the text submitted for public consultation.

The Council of Ministers has also agreed on Tuesday the urgent administrative processing of the Draft Law to reform the consolidated text of the General Law of Social Security in relation to the assistance level of unemployment protection.