Increase in no-compensation layoffs after labor reform

Since the implementation of the labor reform in 2022, there has been a concerning rise in the number of layoffs without compensation or justification. According to data from Colpisa, the total layoffs due to failing the trial period on indefinite contracts have reached 3,188,254 as of August 2026. This phenomenon has intensified significantly, with an almost tenfold increase compared to layoffs recorded in 2021.

The labor reform allowed companies to dismiss employees during the trial period without needing to justify the cause or offer compensation. This has led to a more frequent use of this practice, raising serious concerns about job stability and workers' rights in Spain.

Why it matters

This increase in no-compensation layoffs poses a considerable challenge to labor rights in the country. Workers may feel more vulnerable as companies have greater flexibility to dismiss staff without consequences. This could not only affect employee morale but also the overall perception of job security in Spain.

What we know

Data indicates a significant rise in layoffs since the reform, with figures reflecting a drastic change in the labor landscape. In 2025, 723,763 layoffs were recorded, compared to 75,004 in 2021, highlighting the magnitude of the issue.

What is still unclear

It is still uncertain whether this trend will continue in the future or if there will be changes in legislation that could reverse this situation. The data for 2026 is provisional, suggesting that the final figure could be even higher, but the company has not detailed specific measures to address this problem.