Díaz mobilizes the Labor Inspection to detect "abuses" in dismissals for not passing the trial period

Yolanda Díaz will take decisive action to uncover instances of fraud related to the use of trial periods in employment contracts. Specifically, the Labor Inspection, under the leadership of Minister Díaz, will closely examine contracts that are terminated due to failure to pass the probationary months. The Inspection will also closely monitor cases in which workers are dismissed for the same reason, despite having previously been hired for the same role.

This announcement was made by the Minister of Labor through a press release issued earlier today. Díaz emphasized that it is unacceptable for the trial period to be misused as a means to deny workers their right to job security. “We will not allow this period to serve as an excuse for fraud. The era of disposable workers is over,” added the vice president.

Díaz has tasked the Labor Inspection with identifying any potential irregularities in order to prevent such situations. The Anti-Fraud Tool, utilized by inspectors, enables cross-referencing of databases to detect signs of fraud and enhance their efficiency.

The strengthening of surveillance measures comes a day after the Bank of Spain reported a decrease in the longevity of permanent contracts since the labor reform took effect. While contract rotation has indeed reduced following the regulatory change, the bank attributes this to the increased number of individuals now employed with indefinite contracts.

Nevertheless, open-ended contracts have become less stable. The Bank of Spain highlights that only 48% of indefinite contracts formalized in March 2022 (when the reform went into full effect) survived one year since signing. Prior to the regulatory change, the percentage stood at approximately 52.5%. This reduced stability is influenced by the increase in discontinuous fixed contracts, which have experienced a withdrawal rate rise from 1% to 2% following the reform.

The duration of trial periods is determined by the relevant collective agreement. In the absence of such an agreement or its failure to address the matter, the Workers’ Statute establishes a maximum trial period of six months for skilled technicians and two months for other workers. In companies employing fewer than 25 individuals, this period is limited to three months (excluding skilled technicians), while temporary contracts lasting six months or less cannot impose a trial period exceeding one month. Moreover, it is prohibited for a worker who previously performed certain functions within the same company and is rehired to be subjected to the trial period once again.

An increase in terminations for failing the trial period has been observed since the implementation of the labor reform. The number of registered workers with indefinite contracts without a fixed term has quadrupled since the reform. In 2021, there were 116,522 new registrations, which significantly rose to 492,958 in 2023. However, this surge in permanent employment has been accompanied by a rise in dismissals due to failure to pass the trial period. In 2021, 3,588 dismissals were recorded for this reason, whereas last year saw 34,173, a 9.5-fold increase compared to the pre-reform period.

While it is reasonable to expect an increase in dismissals for failing the trial period with a rise in permanent employment, the relative growth in terminations has been twice as high as the number of new permanent contracts. In 2021, there was one termination for every 33 new permanent contract signings. However, in 2023, this proportion decreased to 14 new registrations for each dismissal during the probationary period.