The 2021 Labour Reform

How Spain's 2021 labour reform restricted temporary contracts and promoted permanent discontinuous contracts, sharply reducing the share of temporary workers.

In December 2021, Spain passed a major labour reform.

Goals

Reduce the high share of temporary contracts.

Changes

Temporary contracts limited to specific justified cases.
More use of fijo discontinuo (permanent seasonal) contracts, for jobs like tourism.

Results

The share of workers on temporary contracts fell sharply, while employment kept growing.

Negotiation

The reform was agreed with unions and employers.

Debate

Some argue fijo discontinuo contracts hide seasonal joblessness.

The seasonal worker

A hotel worker in the Balearic Islands now has a permanent contract that pauses in winter instead of a new temporary contract each summer.

Thinking job protection always cuts employment

Spain's reform cut temporary jobs while employment grew.

Key takeaways

The 2021 reform limited temporary contracts.
Permanent seasonal contracts grew.
Temporary contract share fell.
Unions and employers agreed it.