Spain: Government proposes changes to severance pay

The Spanish Government issued proposals in April 2010 for a number of labour market reform measures, including changes to statutory severance payments and a wider use of special employment contracts with reduced dismissal costs for employers.

In February 2010, the Government launched discussions with the main trade union confederations and employers' organisations over a set of labour market reform proposals aimed at increasing employment levels, and especially promoting stable jobs on open-ended contracts.