New Royal Decree Law on urgent measures regarding incentives for labor recruitment

The beginning of 2023 has begun marked by a new regulation in the format Royal Decree-Law 1/2023, of January 10, in which urgent measures are applied in terms of incentives for labor hiring and improvement of the social protection of people artists.

This normative measure has been approved by the Council of Ministers, however, it will not come into force until next September 1 of this year. According to Puigverd Assessors, the purpose of the Royal Decree Law is to stimulate a significant reorientation in policies to promote employment.

Regarding the content of the regulation of incentives, the general objectives of the standard, within the framework of active employment policies, are to promote the hiring of unemployed people, especially the most vulnerable, to contribute to the creation, maintenance and improvement of the quality of employment and the professional promotion of employed people, as well as promoting self-employment and job creation in the field of the social economy.

Within the framework of the National Recovery, Transformation and Resilience Plan, Component 23 "New public policies for a dynamic, resilient and inclusive labor market", framed in policy area VIII "New care economy and employment policies", Its objective is to promote the reform of the Spanish labor market to adapt it to current reality and needs.

According to the team of professionals at Puigverd Assessors, this makes it possible to correct structural weaknesses, in order to reduce structural unemployment and youth unemployment, correct duality, improve human capital, modernize collective bargaining and increase the efficiency of public policies. of employment. Getting a boost to active employment policies, which will be aimed at training workers in the areas that call for the transformations that our economy requires.

Specific objectives of the standard

As described in the regulations in the Official State Gazette (BOE) number 9, of 01/11/2023, the specific objectives that this Royal Decree Law seeks to achieve are the following:

• The priority promotion of hiring and maintaining stable and quality employment for people and groups considered vulnerable or with low employability.
• Exceptionally, these measures may have the purpose of temporary hiring and always limited to encouraging the traffic of training situations in practices or through a labor contract, in permanent contracts, as well as temporary hiring directly linked to conciliation.
• The guarantee of the principle of equality and non-discrimination in the regulation and application of measures to promote employment and hiring.
• The promotion of the improvement of the quality of the occupation of the group of working people.
• Promoting the hiring of people with disabilities, prioritizing those with the most difficulties and, in general, traffic in ordinary employment.
• The promotion of net job creation and maintenance.
• The promotion of self-employment and the social economy as an effective instrument for generating stable and quality work.
• The recognition and promotion of the participation of other agents in the development of instruments or measures that favor the fulfillment of the objectives of this standard.
• Recognition of the sectoral and territorial dimension of employment aid.

The labor and legal team of Puigverd Assessors explains that " this new regulation will have to be studied to understand it and see how it will affect, at a labor and legal level, the process of hiring new employees ". In addition, it adds that " as the entry into force will be from September 1, 2023, we have room to explain to our clients the more specific details of the new Royal Decree Law ".