Dismissals in times of crisis. Assessment of recent Spanish modifications

Abstract

Effects of the crisis on the Spanish economy have led to increased flexibility of working conditions and specifically, in requirements for dismissal and termination of work contracts. This flexibility has increased since 2010, with the onset of the crisis, and is currently even higher. Reforms have focused on direct and indirect cost reductions resulting from contract terminations, particularly from dismissals. Paradoxically, the main legal reforms that were agreed upon in the area of disciplinary dismissal did not attempt to reduce the number of dismissals, but to lower their cost. Thus, reforms focused on two principal elements: the elimination of procedural salaries and the reduction of compensation costs for unfair dismissal.