The indefinite contract to supporting entrepreneurs: A new example of a failure modality in the Spanish labor relations system

Abstract

Law 3/2012 is intended to facilitate employment and is an example of the legislative reform in the field of employment prompted by the decisions and recommendations of the European Union on employment policy. Article 4 of Law 3/2012 provided for the employment contract of indefinite duration to support entrepreneurs and in order to facilitate stability while fostering the spirit of enterprise, undertakings with fewer than fifty workers, may conclude employment contract to support entrepreneurs.
Since its entry into force, this contract is subject to review by the courts, thus its more important characteristics, one-year probationary period, it has finally become an important source of litigation. This papers analyses court decisions determining whether the rules of this contract comply or not with Spanish and international legislation. Despite the doubts, the main conclusion is that the Court of Justice of the European Union and the Spanish Constitutional Court have validated this type of contract and the duration of the trial period.