European Restructuring Monitor (ERM)
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.
Art. 9 Royal Decree 801/2011; Art. 51 Statute of Workers’ Rights; Royal Decree 43/1996; Art. 18.3 Law 3/2012
During the consultation period of a collective dismissal (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 at least 30 employees in companies with more than 299 employees), employers and workers’ representatives discuss not only the motivating reasons of the restructuring or downsizing, but also the possibility of avoiding or reducing its effects, as well as on the necessary measures to attenuate its consequences for the affected workers.
For example, management and workers' representatives can agree on measures such as the use of outplacement companies or training for the improvement of workers' employability or others measures to guarantee the future 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 must include:
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.
Overall, measures and practices that are reported in the media that are more common across several sectors are: early retirement, voluntary and incentivised exits and, to a lesser extent, relocation. Restructuring measures involving training and retraining actions or promotion of self-employment are not commonly used. Recent collective dismissals (since 2012, when the financial assistance programme for the recapitalisation of financial institutions was approved) reported in the media affecting the financial sector show, for instance, that voluntary and incentivised leaves, together with early retirement measures, are the most common alternatives implemented.
Eurofound (2015), Spain: Obligation to consider alternatives to collective dismissals, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/obligation-to-consider-alternatives-to-collective-dismissals/spain
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