The new reforms, although largely unpopular with workers, will be welcomed by employers. The generous payment scheme on dismissal which Spain had was often a major obstacle for businesses in the current economic climate as the option of dismissing an employee in an attempt to reduce costs could be an expensive one. The high severance payments could also have been seen as a deterrent to hiring and the aim of the new reforms, which include the reduction of the severance payment, is said to be to increase employment.
(Below is the full article published in The Andalucian)