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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case ES-2020-22/1887 – measures in Spain

Subsidies to encourage the hiring of older workers

Subvenciones para incentivar la contratación de personas trabajadoras de edad adulta

Country Spain , applies regionally

    • – ES41 Castilla y León
Time period Temporary, 26 May 2020 – 30 October 2020
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
Author Oscar Molina (UAB) and Eurofound
Case created 24 April 2021 (updated 30 April 2021)

Background information

Older workers, and in particular those aged 55 or more, may face significant problems to find a new job once they're unemployed. These subsidies are aimed to support companies in hiring workers who, on the start date of the eligible contract, have 55 or more years and have been fired from the start date of the alarm state until the date determined in the corresponding call or come from companies that have closed in that period.

Content of measure

Self-employed workers and SMEs with less than 250 employees may benefit from these incentives. Moreover, companies and self-employed must comply with the following requirements:

  • That employment level of the company is maintained for at least 6 months from the start date of the eligible contract.
  • That the contract has a minimum initial duration of at least one year.

The amount of the subsidy will be €8,000 per worker hired on full-time basis. Workers hired though this policy measure must have been fired or become unemployed due to business closure after the beginning of the state of alarm.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Older people in employment (aged 55+)
SMEs
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
Local / regional government
Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Negotiated Negotiated
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Regional or local level

Involvement

Social partners were involved in tripartite social dialogue with the regional government in order to define policy responses to the COVID-19 crisis. Some of the agreements reached in that process were translated into law

Views and reactions

As social partners were involved in social dialogue with the government, they fully support this measure

Sources

  • 16 April 2020: DECRETO-Ley 2/2020, de 16 de abril, de medidas urgentes y extraordinarias para la protección de las personas y las empresas de Castilla y León frente al impacto económico y social del COVID-19 (www.tramitacastillayleon.jcyl.es)

Citation

Eurofound (2021), Subsidies to encourage the hiring of older workers, case ES-2020-22/1887 (measures in Spain), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.