The Government eliminates the star contract of the PP of "support for entrepreneurs" and the salary supplement for young people

The Government eliminates the star contract of the PP of "support for entrepreneurs" and the salary supplement for young people



End to two star measures of the PP in labor matters. The government's 'macrodecrete' approved on Friday with a multitude of measures on Social Security, also includes the repeal of the contract to support entrepreneurs and the salary supplement of 430 euros to young people in training approved by the Government of Mariano Rajoy. They are two of the labor measures that the royal decree-law eliminates, although it does not include the suppression of any of the "key elements" of the labor reform that required him to modify the unions.

The unemployment rate stood at 14.55% in the third quarter of the year, below the 15% threshold for the first time in a decade. This level of unemployment was used as a reference for several extraordinary measures taken during the crisis, such as the extension of training and apprenticeship contracts beyond the age of 25, up to 30 years, or of various subsidies for the hiring of companies.

To that 15% of unemployment was also linked the existence of the contract of support for entrepreneurs, created by the Government of the PP in the labor reform of 2012. This form of contract is intended for companies with less than 50 workers and has bonuses and tax deductions for employers. The contract has been the object of the criticism of the unions, especially for its one-year trial period, at the end of which the employer can dispense with the employee without any compensation.

The socialist government had already announced that it intended to eliminate this contractual modality, considering it ineffective because of the number of contracts signed, among other reasons. Finally it has availed itself of this royal decree-law of urgent measures to suppress the contract and the majority of measures linked to the unemployment rate of 15%, with the argument that it must "guarantee legal security and avoid the uncertainty of entrepreneurs and workers on the validity of said measures "given the fall in unemployment.

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