BEERG Newsletter - Spain: Amendment to collective redundancies law

Rubén Agote of Cuatrecasas writes: The Spanish government has amended Royal Decree 1483/2012 of 29 October, which sets out the regulations on collective redundancy procedures, the suspension of contracts and reduction of working hours, to introduce a new Additional Provision 6. 

This is a new notification obligation for companies that are going to close one or more work centres, that this closure involves the cessation of their activity (of the work centre, it should be understood) and that the decision affects more than 50 workers. 

The new Provision 6 says employers must give at least 6 months' notice (unless there is a justification for not being able to meet this deadline) to: (i) the competent labour authority, through the Directorate-General for Labour; and (ii) the most representative trade union organisations and those representing the sector to which the company belongs, both at national level and in the autonomous community where the workplace or workplaces to be closed are located. There is no mention of an RLT (works council representing the whole workforce).

The exception reads as follows: "If it is not possible to comply with this minimum period of notice, the notice must be given as soon as possible, stating the reasons why it was not possible to comply with the period laid down". 

No consequences are foreseen in the event of non-compliance, and we do not believe that this could affect the nullity of the procedure. However, the labour authorities could see non-compliance as a breach of administrative obligations and impose an appropriate fine. Also, it may have some inconveniences in the preparation process from an operational perspective: workers knowing that the site will close could impede some changes that could have been made in a different scenario.

For now, we do not think this change will make any major difference to redundancy procedures. I am more than happy to answer any questions on this.