Eurofound's ERM database on restructuring-related legal regulations provides
information on regulations in the Member States of the European Union and Norway
which are explicitly or implicitly linked to anticipating and managing change.
Spain: Employers obligation to support redundant employees
Phase
Workers' Statute; Law 3/2012 of 6 July on urgent measures to reform the labour market
Native name
Estatuto de los Trabajadores; Ley 3/2012, de 6 de julio, de medidas urgentes para la reforma del mercado laboral
Type
Employers obligation to support redundant employees
Added to database
11 May 2015
Article
Article 18 of Law 3/2012
Description
During the consultation period of a collective dismissal in general (within 90 days, more than 5 employees made redundant if the whole workforce is affected; at least 10 employees in companies with fewer than 100 employees; 10% of the employees in companies between 100 and 299 employees; and 30 employees in companies with more than 299 employees), employers and workers’ representatives discuss not only the reasons for the dismissal, but also the possibility of avoiding or reducing its effects, as well as the necessary measures to attenuate its consequences for workers. This does not apply in case of individual dismissals.
For example, the negotiators can agree on measures such as the use of outplacement companies, training (including training for the improvement of the workers' employability), or other measures to make possible the viability of the undertaking.
In undertakings with 50 or more employees, the employer must provide a social plan to the public authorities and workers’ representatives. The social plan can include the following measures:
measures intended to avoid or reduce the effects of restructuring – for instance, internal redeployment, functional or geographical mobility, substantial modifications of contractual conditions, training or retraining measures;
promotion of self-employment or employment in the social economy;
financial compensations for geographical mobility;
economic, technical, organisational and other types of measures intended to make the continuation of the undertaking and its activity possible.
Companies have to carry out a special training and redeployment plan of at least 6 months implemented by means of an authorised outplacement company, if the collective dismissal affects over 50 employees.
Commentary
It is worth noting that only companies employing 50 workers or more are forced to implement a social plan aiming to support dismissed workers.
In practice, the use of early retirement schemes as social plan measure results in dismissals of employees near retirement age. This will not be discriminatory if continuity of earnings until retirement age is guaranteed, and justified that if these were not dismissed, other workers would be affected and the company could not guarantee compensation for them. In this case, these employees would be in worse situation in terms of entering the labour market.
Law 3/2012 extended external flexibility by specifying more precisely the objective reasons under which an employer can undertake a collective redundancy. In exchange, the law forced the companies to carry out a special training and relocation plan for the workers dismissed if the collective dismiss affects over 50 workers.
Additional metadata
Cost covered by
Employer
Involved actors other than national government
Public employment service
Trade union
Works council
Other
Involvement (others)
Authorised outplacement companies
Thresholds
Affected employees: 6 Company size: 6 Additional information: No, applicable in all circumstances
Sources
DG Employment, Social Affairs and Equal Opportunities/Héra (2011), Selected companies’ legal obligations regarding restructuring
Ius Laboris (2009), Collective Redundancies Guide, Brussels
Alpha Consulting (2003), Anticipating and Managing Change - A dynamic approach to the social aspects of corporate restructuring, European Commission, Brussels
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