- On 28 December, the Council of Ministers approved the royal decree-law on labour reform, five days after the agreement.
- The year ended with the economy recovering, but with inflation and energy as major concerns.
- Recovery does not put everything back where it was: costs, rules and customer habits change. Being prepared means accepting that it will be different.
On 28 December 2021, the Council of Ministers approved the royal decree-law on labour reform. Five days after the agreement between government, employers and unions, the pact became law. Companies now had a specific legal text to work with and plan on. The year thus ended with a significant regulatory milestone for the labour market. For many companies, the start of 2022 would also be the start of a new way of hiring.
The date also had symbolic value: the close of the year is a natural moment to take stock. With the reform approved, companies could begin the new year with a clearer framework on hiring. And with the year about to end, it was also a good time to look back and draw conclusions about what 2021 had taught those who run businesses and manage wealth.
From agreement to law
A political or social agreement needs to become a rule to have legal effect. The Council of Ministers approved the royal decree-law five days after the agreement, which means the text became binding and companies had to begin adapting to it. What had been agreed became mandatory, with its deadlines and conditions. Reading it in detail before the calendar tightens avoids mistakes.
With the rule published, the practical work shifted to its application. It remained to be seen how some details would be interpreted, what adaptation periods would be granted and how any doubts that arose would be resolved. For companies, the first step was to read the text calmly, with the support of their labour advisers, and identify which contracts and practices needed to be reviewed. It is best done in the first weeks of the year, before urgent matters arise.
A review of the year
The year ended with the economy recovering, but with inflation and energy as major concerns. Throughout 2021 there had been the reopening, the aid and the European funds, but also higher energy prices, supply-chain problems and the beginning of the central banks’ change of course.
Recovery and tensions coexisted throughout the year. Furlough schemes and aid helped to sustain companies and jobs; the recovery plan and European funds opened investment prospects; and, at the same time, rising prices and the withdrawal of stimulus were a reminder that the financial environment was not static. It was a year that combined relief and uncertainty in equal parts. That combination recommends planning prudently for the year that begins.
The lesson of the year
If 2021 left a lesson, it was that recovery does not put everything back where it was: costs, rules and customer habits change. Reviewing each year’s plan with that idea in mind is what sets a prepared company apart. It is worth starting the new year by going over costs, contracts, financing and regulatory obligations, with the support of advisers.
In practice, that means asking which supply contracts expire, what debt is at a variable rate, what new rules affect the business and what changes have occurred in demand. It also means talking to the team, the bank and key customers. Being prepared is not predicting the future, but accepting that it will be different and having room to adapt. Financial room, time and freedom of decision are the three reserves most appreciated when a change arrives.
Years do not resemble one another: the best preparation is the one that leaves room for the unexpected.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
