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<link>http://www.globalemploymentlaw.com/regions/europe/spain/</link>
<description>International Labor &amp; Employment News, Updates &amp; Commentary</description>
<language>en-us</language>
<copyright>Copyright 2013</copyright>
<lastBuildDate>Fri, 02 Mar 2012 10:53:19 -0800</lastBuildDate>
<pubDate>Thu, 03 Jan 2013 16:58:21 -0800</pubDate>
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<title>Mass Unemployment in Spain Causes Historic Labour Law Reform</title>
<description><![CDATA[<p><font style="FONT-SIZE: 0.8em"><em>By</em> </font><a href="http://www.sagardoy.com/" target="_blank"><font style="FONT-SIZE: 0.8em">Sagardoy Abogados</font></a><font style="FONT-SIZE: 0.8em"> (the Spain member of Ius Laboris)</font></p>
<p>
<span style="DISPLAY: inline" class="mt-enclosure mt-enclosure-image"><img style="MARGIN: 0px 0px 20px 20px; FLOAT: right" class="mt-image-right" alt="For hire.jpg" src="http://www.globalemploymentlaw.com/images/For%20hire.jpg" width="121" height="172" /></span>On the 12th of February, Spanish Labour Law underwent an historic change. Royal Decree-Law 3/2012, entered into forceestablishing new measures to improve the employability and the stability of workers in Spain. In view of the overwhelming scale of mass unemployment in the country, the new measures go further than mere reform. They represent an attempt to transform Spain's employment model by creating a new and different work culture adapted to modern business reality.</p>
<p>Employability of the worker is addressed through various modifications to Spain's labour legislation. Under the decree, professional training is regarded as a personal right; all employees who have been with a company for at least one year are granted 20 hours of paid leave in order to carry out job-related training activities. Additionally, a more flexible management of a business' human resources is also required, allowing for professional progression based on an employee's efforts and abilities, not professional classification.</p>]]><![CDATA[<p>The reform package addresses the issue of stability by giving particular importance to the specific legal regime created for Small and Medium-sized Enterprises (SMEs) by entitling them to tax deductions for hiring employees under 30 with indefinite term contracts. The reform also deals with aspects such as the fight against fraud, absenteeism (with more flexible regulation) and the removal of obstacles in redundancy proceedings (a real hindrance for many SMEs and a practice distinct to the rest of Europe, excluding Greece).</p>
<p>The above-mentioned changes are just some of the reforms made by the Royal Decree. The reform is now awaiting approval by the Spanish Parliament and may yet be subject to further amendment, but it could represent a major and positive step forward to a more flexible labour market in Spain.</p>
<p><font style="FONT-SIZE: 0.8em"><i>Photo credit:</i> </font><a href="http://www.istockphoto.com/user_view.php?id=550207" target="_blank"><font style="FONT-SIZE: 0.8em">Rich Vintage Photography</font></a></p>]]></description>
<link>http://www.globalemploymentlaw.com/2012/03/regions/europe/spain/mass-unemployment-in-spain-causes-historic-labour-law-reform/</link>
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<category>Government policies and proposals</category><category>Spain</category><category>Workforce management</category>
<pubDate>Fri, 02 Mar 2012 10:53:19 -0800</pubDate>
<author>Ius Laboris</author>
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<title>European Court of Justice Finds Spain&apos;s Breastfeeding Leave Statute Inconsistent with Equal Treatment Directive</title>
<description><![CDATA[<p>Under Spanish Law, employed mothers shall be entitled, for the purpose of feeding an unweaned child under nine months of age, to take an hour off during each workday. In addition, the relevant law points out that breastfeeding leave may be taken by the mother or the father without distinction, provided that they are both employed (Section 37.4 Workers´ Statute).</p>
<p>The case in dispute derives from this last legal statement, whose interpretation has brought much confusion regarding breastfeeding before the Spanish labour courts. In the case considered, the employer rejected a male worker's request to enjoy such leave because the mother of the child was not employed, but self-employed. The High Court of Justice of Galicia wonders whether the right to leave should not be accorded to men in the same way as women, and whether the fact of restricting it to employed women and the fathers of their children is not a discriminatory measure contrary to the principle of equal treatment and to Directive 76/2007.</p>]]><![CDATA[<p>The dilemma is brilliantly solved by the European Court of Justice in a <a href="http://curia.europa.eu/jurisp/cgi-bin/form.pl?lang=EN&amp;Submit=Submit&amp;numaff=C-104/09">ruling </a>dated September 30, 2010, precluding such national measure inasmuch as restricts the principle of equal treatment comprised in Articles 2 to 5 of the aforementioned Directive. This reasoning is reinforced by different considerations:</p>
<ul>
<li>The act of breastfeeding is detached from the biological factor and has to be considered as time purely devoted to the child which reconciles family life and work following maternity leave. Nowadays, bottlefeeding and taking care of a child are responsibilities that can generally be assumed by fathers in the same way as by mothers.</li>
<li>The Spanish legislation is mainly focused on the child, whose need to be taken care of can be met by allowing either the mother or the father time off from work.</li>
<li>The measure does not reduce inequalities to prevent or compensate for disadvantages in the professional careers of women, who historically have suffered adverse consequences for their career advancement as a result of care and attention devoted to their children. </li></ul>
<p>Finally, the European Court concludes that the father should be also regarded as holding the right to qualify for this specific leave and have an independent right to be granted with this "parental leave" regardless of the working regime the mother belongs to (self-employed, ordinary employee, etc). With this interpretation, the traditional distribution of the roles of men and women regarding baby-feeding with effects in the working life will tend to be eradicated, and men will no longer have a subsidiary role to that of women in connection with the exercise of such parental duty.</p>
<p>From now onwards, Spanish Labour Courts must review their criteria whenever a father is asking for the breastfeeding leave and the mother is a self-employee so as to be consistent with the Equal Treatment Directive and, beyond biological factors and for one time ever, consider him as an independent holder of such right.</p>
<p>This entry was written by <a href="http://www.sagardoy.com/object.php?obj=b3e03e8">Roman Gil </a>and <a href="http://www.sagardoy.com/object.php?obj=104103e8">Jose Miguel Mestre</a>.</p>]]></description>
<link>http://www.globalemploymentlaw.com/2010/11/regions/europe/spain/european-court-of-justice-finds-spains-breastfeeding-leave-statute-inconsistent-with-equal-treatment/</link>
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<category>Discrimination and harassment</category><category>Maternity and parental status</category><category>Spain</category><category>Time off entitlements</category>
<pubDate>Tue, 02 Nov 2010 07:51:47 -0800</pubDate>
<author>Sagardoy Abogados</author>
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<title>Employer&apos;s Second Thoughts are Permitted in an Unjustified Dismissal</title>
<description><![CDATA[<p>In a dispute recently litigated in Spain, the employer acknowledged that the discharge of the employee was unjustified and thus sought to pay severance. An indemnity package was offered, but the employee never accepted it. In turn, the employee filed suit alleging the amount to be paid should be higher, in conformity with seniority he had accrued. Eventually, the Madrid Superior Court confirmed the court of first instance's ruling by granting the employee's lawsuit. </p>
<p>The issue that truly came into play was that, after such decision, in conformity with Section 56.2 of the Workers' Statute Act, employers are--within five working days after the ruling being notified--legally entitled to pay proper severance or reinstate the employee in his last position with equal rights. In this regard, the Spanish Supreme Court has examined whether an employer's first stance to terminate an employee is binding, or whether a choice between severance payment or reinstatement is still possible.</p>]]><![CDATA[<p>In December 2009, the Supreme Court en banc held that, because the employer's first offer to the employee to reach a deal avoiding a potential judiciary conflict was never accepted, its ability to decide between the two options - terminate or reinstate - cannot be prevented, as this would run afoul of Section 111.1(b) of the Employment Procedural Act.</p>
<p>Unfortunately for the employee in this case, the employer's option for reinstatement required him to leave his current job, since he was already working for another company.</p>
<p><em>This entry was written by </em><a href="http://www.sagardoy.com/object.php?obj=104103e8"><em>Jose Miguel Mestre</em></a><em>.</em></p>]]></description>
<link>http://www.globalemploymentlaw.com/2010/05/regions/europe/spain/employers-second-thoughts-are-permitted-in-an-unjustified-dismissal/</link>
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<category>Spain</category><category>Termination of employment</category>
<pubDate>Thu, 27 May 2010 12:27:42 -0800</pubDate>
<author>Sagardoy Abogados</author>
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<title>Supreme Court&apos;s New Counting Unit Criteria for Layoffs</title>
<description><![CDATA[<p>In a <a href="http://www.expansion.com/2009/09/13/juridico/1252868250.html">ruling </a>that sets case law in Spain, the Supreme Court ruled that counting unit criteria to undergo a collective dismissal procedure under the Workers' Statute Act is the total number of employees in the workforce instead of only those employees located in the affected location.</p>
<p>The decision is extraordinarily useful and sheds light on the statutory dilemma that companies have faced: while European Directive 98/59 sets forth the working place as a reference unit of counting, Section 51.1 of Spain's Workers' Statute Act provides that all employees in a company be counted.</p>]]><![CDATA[<p>Thus, the Supreme Court approved a company's decision not to meet the legal requirements of a layoff (Spanish term of art 'Expediente de Regulacion de Empleo' or 'ERE') and found that 27 employees who were dismissed based on an individual basis were properly terminated. Because the 27 employees did not exceed the 10% threshold of the total workforce, an ERE was not needed. In addition, grounds for the reduction in force were found sufficient due to the employer's failing financial health. </p>
<p>This entry was written by <a href="http://www.sagardoy.com/object.php?obj=104103e8">Jose Miguel Mestre</a>.</p>]]></description>
<link>http://www.globalemploymentlaw.com/2010/05/regions/europe/spain/supreme-courts-new-counting-unit-criteria-for-layoffs/</link>
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<category>Reductions in force/collective redundancies</category><category>Spain</category>
<pubDate>Fri, 21 May 2010 10:54:48 -0800</pubDate>
<author>Sagardoy Abogados</author>
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<title>Dual Scale of Rights Upheld When Based on Objective and Reasonable Grounds</title>
<description><![CDATA[<p>The <i>Audiencia Nacional</i> Employment Chamber judgment of 25 February 2009 confirmed the legality of the dual scale of rights (mainly in relation to salary) regulated by the current CLH (Tierra) collective bargaining agreement. This company originated from the State-owned company CAMPSA, which lost its oil monopoly under Law 34/92 and was forced to adapt to the oil sector legislation under European law, open to competition. This substantial change of circumstances resulted in the creation of a number of entities. The most important of these was CLH (Tierra), whose main activity is the distribution of liquid hydrocarbons in Spain through the management of oil pipelines. <br /></p>]]><![CDATA[The new situation led to the need to adapt a collective bargaining agreement which, due to the employer's advantageous status as a monopoly, had been granting very generous rights (relating to salary, functional inflexibility, etc.), which were found to be incompatible with the demands of a competitive market. In view of this, collective dismissals were carried out and a new agreement was concluded. This made a distinction between the terms applicable to "privileged" workers - hired during the monopoly - and those who had joined later. <br />
<p>The agreement was challenged by the trade union before the employment jurisdiction and was eventually held to be lawful on 5/3/2007 by the Fourth Chamber of the Supreme Court, which held that a dual scale which was necessary to enable CLH to adapt to new circumstances was neither abusive nor discriminatory. <br /><br />The recent judgment issued by the <i>Audiencia Nacional</i> relates to a subsequent trade union challenge of the company's current collective bargaining agreement (although the challenge was brought by a minority trade union, the majority trade union joined in and, as such, was signatory to the agreement which is now under challenge); the claimants argued that the dual scale of rights was no longer lawful in view both of the company's situation and of certain Supreme Court case law which they believed to apply. Following a trial in which the company was represented by Juan Antonio Sagardoy, the <i>Audiencia Nacional</i> held that the circumstances leading to the confirmation of the previous collective bargaining agreement still applied (the need to adapt to the competition while respecting, on a personal basis, more advantageous terms for "older" employees, in addition to the ability to have a new collective bargaining agreement with rights conferred by a previous one), and concluded that the dual scale was based on objective and reasonable grounds.<br />&nbsp;<br />It is worth adding that in CLH's current collective bargaining agreement (just like in the case leading to the Supreme Court judgment of 30/10/2008 relating to Repsol's dual scale and whose reasoning coincides with that of the <i>Audiencia Nacional</i>), it is not a projection of remuneration differences into the future but the maintenance, on a personal basis, of the terms applicable to certain workers (increasingly fewer in number) and the establishment of a single common system to guarantee the company's viability.<br /><br /><i>This entry was written by <a href="http://www.sagardoy.com/object.php?obj=b3e03e8">Román Gil Alburquerque</a>.</i></p>]]></description>
<link>http://www.globalemploymentlaw.com/2009/09/regions/europe/spain/dual-scale-of-rights-upheld-when-based-on-objective-and-reasonable-grounds/</link>
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<category>Representation of workers</category><category>Spain</category>
<pubDate>Sun, 20 Sep 2009 15:57:00 -0800</pubDate>
<author>Sagardoy Abogados</author>
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