2012 Labor Reform in Spain. Relevant aspects for investors.

Royal Decree Law 3/2012, of February 10, which approved urgent measures to reform the labor market, entered into force on February 12, 2012. This law introduced important measures designed to promote the flexibility of the historically rigid Spanish labor market. Law 3/2012, of July 6, which approved urgent measures to reform the labor market (LRLM), in force since July 8, includes more than fifty relevant changes. The labor reform represented by this new legislation is neither superficial nor apparent, nor is its intention solely to «soothe the markets». Rather, it is an integral reform that substantially modifies key aspects of labor relationships, introducing enormously flexible elements that make our country an attractive place to invest and carry out economic activity.
The purpose of this note is to highlight those aspects of the reform with which investors (or potential investors), whether Spanish or foreign with interests in Spain, should be familiar, as they are the most relevant aspects and directly affect the management of their investments or their decision to invest in our country.