The reform of labor laws in Spain had its origin in an executive order of the Government, June 2010, during the second term of José Luis Rodríguez Zapatero as president, and entered into force on June 18 after its publication in the Boletín Oficial del Estado.
The executive order was ratified by the Congress of Deputies with 168 votes for (Spanish Socialist Workers' Party), 8 votes against (Esquerra Republicana de Catalunya-Izquierda Unida-Initiative for Catalonia Greens, Bloque Nacionalista Gallego and Nafarroa Bai) and 173 abstentions (People's Party, Convergencia i Unio, Basque Nationalist Party, Coalición Canaria, Union del Pueblo Navarro and Union, Progress and Democracy).
[1] The reform made it possible for employers and workers to suspend collective agreements in case of economic downturn.
Introduction of an Austrian-inspired system to reduce the cost to employers of dismissing workers while seeking to maintain a high level of employee security (flexisecurity).
The government proposed a mutualization of part of the compensation payments due by employers in case of laying off workers.