The labor law reform: one year on

February 12, 2013 marked the first anniversary of the entry into force of the Labor Law Reform approved by Royal Decree-Law 3/2012, of February 10, 2012, subsequently ratified by Law 3/2012, of July 6, 2012, on urgent measures to reform the labor market. All of which makes this the ideal opportunity to assess whether the reform has, to date, had the desired effect on the labor market, thus meeting its intended aims.

With its proponents and detractors, the Labor Law Reform has had a truly far-reaching impact on labor relations in Spain, granting employers greater room for maneuver in the shape of the broader powers granted in the field of company organization and, in particular, through the promotion of internal flexibility measures, as well as the regulation of labor relations at an in-company level, which, in short, has a knock-on effect on the specific operations of each business. Elsewhere, among other measures, restrictions on certain aspects of external, administrative and judicial control over certain corporate measures such as collective layoffs have been lifted.

Following the first year of the legislation approved in the wake of the Labor Law Reform, which has undoubtedly had an impact on labor relations, it is worth asking whether the changes that have occurred have been positive for the Spanish employment market, with signs of increased activity on the labor market and leading to the much longed for job creation, or if, on the contrary, the reform has done nothing to solve the problems of the Spanish employment market, making new and more wide-ranging measures to remedy the current situation necessary.