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| 1 employment law overview

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employment law overview spain 2021-2022Suárez de Vivero / Proud Member of L&E GLOBAL

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table of contents.

i. General overview 03ii. HirinG praCtiCeS 05iii. employment ContraCtS 07iv. workinG ConditionS 08V. Anti-DiscriminAtion LAws 10vi. pay eQUity lawS 12vii. SoCial media and data privaCy 14 viii. termination of employment ContraCtS 16iX. reStriCtive CovenantS 22X. tranSfer of UndertakinGS 24Xi. trade UnionS and employerS aSSoCiationS 25Xii. employee BenefitS 29




i. general overview

2. Key points•Non-EUcitizensmustobtainaworkpermit.•Inprinciple,employmentcontractsarepresumedtobeforanindefiniteterm.However,thenumberoffixed-termemploymentcontractsaresubjecttosomelimitations.

•MinimumworkingconditionsarelargelysetoutintheWorkers’Statuteandapplicablecollectiveagreements.

•Employment contracts are automaticallytransferred with the business to the newemployer.Employees’ rightsandobligationsarealsotransferred.

•Terminationcanbebasedonobjectivegrounds.•Dismissals are void if the termination isdiscriminatoryorinvolvesprotectedemployees.

3. legal frameworKThe economic crisis of 2008 revealed theunsustainabilityof theSpanish labourmodel.Thelabourlegislationwasupdatedin2012toadequateitself inatimeofcrisiswithin the labourmarket.RoyalDecree-Law3/2012of10February,onurgentmeasurestoreformthelabourmarket,significantlymodified the institutional framework of Spanishlabourrelations.

The main sources of Spanish employment lawinclude:

•The Spanish Constitution dated 17 December1978.

•RoyalDecree2/2015(theWorkers’Statute).•Royal Decree-Law 3/2012 of 10 February onurgentmeasurestoreformthelabourmarket.

•Law3/2012of6July2012onurgentmeasurestoreformthelabourmarket.

•Royal Decree-Law 16/2013 on measures toimprovehiring.

•Law5/2000onLabourInfractionsandSanctions.•Law31/1995onWorkRiskPrevention.•Law 3/2007 on Equality between Men andWomen.

•RoyalDecree8/2015onSocialSecurity.•Collective Bargaining Agreements, applicable toboththecompanyanditsworkers.

•Employmentcontracts.•Habitsandcommonusage.•GeneralPrinciplesofLaw.

4. new Developments Themost importantnew legislationfrom2018to2020includesthefollowing:

•The Spanish Data Protection Act 2018 (OrganicLaw for the Protection of Personal Data andGuaranteeofDigitalRights)cameintoforceon5December2018. This regulationadapts SpanishlawtothemodelestablishedbytheEUGeneralDataProtectionRegulation(‘GDPR’).

1. introDuctionAsisthecaseinotherEuropeancountries,Spanishlabourlawisverycomprehensiveandprovidessignificantprotectionforemployees.Thelabourlawregulatesindividualandcollectiverelationshipsbetweenemployeesandemployers,thescopeofwhichextendstootherrelatedareassuchassocialsecurity,healthandsafetyatwork,specialemploymentrelationshipsandprocedurallaw.



•Royal Decree-Law 17/2019 of 25 Januaryintroduces a new article (Article 70 bis) inthe General Regulation on the quotes andliquidation of social security rights, to establishtheresponsibilityofthedifferentadministrationsandpublicentities.

•Royal Decree-Law 20/2018 of 7 December onurgentmeasures for economic competitivenessin the sector of industry and trade in Spain,allows the manufacturing industry to applythe regulation of partial retirement under thefulfilmentofcertainrequirements.

•RoyalDecree-Law6/2019of1March,onurgentmeasures to guarantee equal treatment andopportunitiesformenandwomeninemploymentandoccupation.

•RoyalDecree-Law8/2019of8March,onurgentsocialprotectionmeasuresandagainstprecariousworkduringtheworkingday.

•Royal Decree-Law 4/2020 of 18 February,derogates the objective dismissal due to non-attendanceatworkasestablishedinarticle52.d)oftheconsolidatedtextoftheWorkers’Statute.

•RoyalDecree-Law28/2020of22 Septemberonremoteworking.



ii. Hiring practices 1. requirement for foreign employees to worK Foreign employees from outside the Europeancommunity, including self-employed individuals,must obtain an administrative authorisation, orwork permit, to work in Spain. The work permitmayberequestedattheImmigrationBureau.

2. Does a foreign employer neeD to establisH or worK tHrougH a local entity to Hire an employee?When a foreign employer wants to hire a localemployee in Spain, itmust take chargeof all theobligations related to the employee, such as thesocialsecuritycontributionsandtheincometaxes.There are essentially two ways that a foreigncompanycanhireemployeesinSpain.First,thereisapossibilityofsettingupacompany(subsidiaryorbranch) inSpainandhiringemployeesthrough it.Theset-upprocessconsistsofestablishingafixedbase of business in Spain, to develop an activity,andgrantaPublicDeedbeforethePublicNotary.Tax lawsrequirea legalrepresentativeresident inSpain,aswellasaDigitalCertification,inordertoworkwiththeSpanishTaxAgency.ThecompanyinSpainwillhaveseveralotherobligationsrelatedtothefollowingservices:

•accountancy;•corporateincometax;•booksofcommerceandminutes;•annualaccounts;•paymentofsocialcontributions.

Second,incontrasttothefirstoptionandonlywhencertainrequisitesaremet,theforeigncompanymayhavealegalrepresentativeinSpain(representationoffice).ThelegalrepresentativeinSpainmustbeaSpanishresident(individualorcompany)anditwillberesponsibleforensuringcompliancewithtaxes,andthesocialcontributionsystempaymentsoftheforeigncompanyinSpain,asthesecannotbecarriedout directly by the foreign legal entity. The legalrepresentativewillusuallytakecareofthepayrollandthetaxpaymentoftheemployees.Inordertohavea legal representative, the foreignemployerwill need to give a power of attorney appointingsomeone as its legal representative, residing inSpain.ThisPOAmustbevalidatedbyapublicnotaryorbytheSpanishconsulateintheforeigncountry,stating that the company is validly constituted inaccordancewithitsapplicablelaw,translatedintoSpanishbyasworntranslatorandwiththeHagueApostille.Additionally,theobtainmentofaDigitalCertificationwillbecompulsory.

3. limitations on bacKgrounD cHecKsInformation regarding criminal records isconfidential and public disclosure is prohibitedas it could violate data protection regulations.Moreover,thereisageneralprohibitionforbiddingdiscrimination against any employee, for anyreason, either before or after being hired. This isspecificallyprovidedforinarticle14oftheSpanishConstitution, article 4.2 of the Workers’ Statuteandarticle73.2oftheGeneralPenitentiaryLaw.Inaddition,accesstotheCentralRegistryofConvictswill only be allowed for certain state agencies,judges and courts, as well as the judicial police,when there is such a requirement. Therefore,theemployer cannotobtain suchdataunless thecandidates or the employees provide the datavoluntarily. The courts have understood that therequestforanduseofthisinformationarecontraryto the legal provisions, considering that these



practicesrepresentarestrictionontheaccesstothelabourmarket.Thisisso,becauseinmostcasestheinformationprovidedisrelatedtopasteventsthatareentirelyunrelatedtothejobbeingoffered,sothe company’s request couldbedisproportionatefor the intended purpose. Consequently, forSpanishCourts,therequestforbackgroundchecksduring the selectionprocess and theexclusionofacandidateduetotheinformationobtainedfromthem,couldbediscriminatory.

As an exception to the general prohibitionmentioned above, there are certain sectorswhereby there exists a legal obligation thatentitles the employer to request and proceedwith background checks. Among these sectors,wefind the Public Administration, the state/localpolice, the army,managingmembers of financialinstitutions, insurance agents, professionals whoworkwithminorsandcasinos.

4. restrictions on application/interview questionsByaseriesofstrictregulationsandcaselawontheprohibition of any type of discrimination as wellas a prohibition, as a general rule, on requestingcandidates to submit personal data that is notdirectly related to the needs of the job they areopting for.Especially in theselectionprocess, thegeneral position prohibits requests for personalinformation suchas racialorethnicorigin, sexualorientation, health information, religious beliefs,persuasionsorpoliticalviews.Personalinformationalongsuch linesof inquirycanonlybe requestedwhen the need to know of such convictions isobjectivelyandreasonablyrelatedtothenatureofthejob.Moreover,suchpersonaldatamayonlybecollectedwhenappropriate,inarelevantandnon-excessivemanner, and only as it relates in scopetothespecific,explicitandlegitimatepurposesforwhichtheinformationwasobtained.

Anotherquestion iswhether there isa legitimateneed that would allow for an employer or HRrepresentative to investigate a candidate’s profileonsocialnetworks,inordertodiscoveradditionalinformationabout thecandidate.This isamatter

thathasnotbeenregulatedinSpainandthereforea candidateparticipating in a job interview couldfindhimselfina“vulnerable”positionofwhichtheemployercouldtakeadvantageof.

However, in principle, it is indeed legitimate forthe employer to use such information as long asit is public, unrestricted and available to anyone.Therearenogeneral guidelines that canbeusedto guarantee that the fundamental rights ofthe candidate will in no way be breached whenextractinginformationfromsocialnetworks.

The employer is allowed to ask any questionnecessary, provided that it is reasonable andobjective, and pertains to the job being offered.Forexample, requests fora candidate’sminimumheight and age could be necessary and objectiveforaflightattendantposition.



iii. employment contracts1. minimum requirementsGenerally, Spanish Labour Legislation allowsfor freedom of form when making a contract.Employmentcontractscanbeverbalorinwriting.However, during the term of a verbal contract,either of the partiesmay require that the verbalcontractbereducedtowriting.Asanexceptiontothefreedomofform,certainemploymentcontractsmust be in writing, including, but not limitedto, temporary employment contracts, contractsinvolving special labour relations (such as thoseconcerning lawyers, topmanagers or commercialrepresentatives)andpart-timecontracts.

Notwithstanding the general freedom of formprinciple,whenanemploymentcontract’sdurationperiod is greater than four weeks, the employer,within two months from the commencement ofthe employment relationship, must provide theemployeewiththefollowinginformationinwriting:

•identificationofthepartiestotheemployment;•date of commencement and estimation of theemploymentdurationfortemporarycontracts;

•placewhereservicesaregoingtoberendered;•professionalgrouporcategory;•base salary as well as other compensation orbenefits,ifany;

•totalworkinghours;•totalnumberofholidays;•noticeperiods;•applicablecollectiveagreement.

2. Fixed-term/Open-enDeD contractsInprinciple, employment contracts arepresumedto be for an indefinite term. There are, however,a limited number of definite-term employmentagreements. If the employee continues to workpasttheoriginaltermofthetemporaryagreement,the relationship becomes indefinite in time andthe employee becomes entitled to the standardseveranceupontermination.

3. trial perioDIntheeventthatnospecialprovisioniscontainedin an applicable collective bargaining agreement,notice periods cannot exceed six months forworkers with an academic degree and for anyother employees. However, the contract forentrepreneurshasestablishedatrialperiodofoneyear.

4. notice perioDSpanishLabourLawrequires thataparty seekingto terminate an employment agreement providetheotherpartytotheagreementwithaminimumof fifteen (15) days’ notice prior to termination.Thisruledoesnotapplyto interimcontracts.Theparties to the contract may agree upon longernoticeperiods.



iv. worKing conDitions 1. minimum worKing conDitionsEmployers and employees are free to negotiatethe terms and conditions of their employmentrelationship. However, employees have variousminimum rights under the law, regardless of anycontrarylanguageintheiremploymentagreement.TheseminimumworkingconditionsaresetforthintheWorkers’Statuteandtheapplicablecollectiveagreement,amongothers.

2. salaryAnemployee’ssalaryincludesallamountsreceivedby an employee in compensation for servicesrendered. Salary canbemonetaryor in kind,butthe lattercannotbehigher than30%of the totalamountreceivedbytheemployee.

3. maximum worKing weeKThe maximum working week is forty (40) hourscalculated as an average over a yearly period.A collective agreement, or failing that, anagreement between the employer and employeerepresentatives, may establish the irregulardistribution of working time throughout theyear. In the absence of agreement, the companymay distribute unevenly throughout the year,10percentof theworkday. This distribution shallalwaysrespecttheminimumdailyandweeklyrestperiods.

4. overtimeAsageneralrule,overtimehoursareofvoluntaryacceptance by employees, with exceptionsmade for specific individuals and an applicablecollective agreement. Structural overtime hourswillbeobligatoryastheyaremeanttosubstituteunexpected leaves and meet higher productionperiods. Overtime hours can be compensatedeconomically orwith time for rest. If there is noagreementinthisregard,itwillbeunderstoodthatthe overtime hours must be compensated withrestingtimewithinthefollowingfour(4)months.Accordingtostatutorylaw,overtimecannotexceedeighty (80)hoursperyear. Thosewhohavebeencompensatedwithperiodsof restwithin the four(4) months following its completion will not becomputed for this purpose. In addition, there isa form of overtime that is considered as forcemajeure, wherein overtime is required due totheneed topreventor repair accidents,orotherextraordinary and urgent damages. This type ofovertimeismandatoryfortheemployeesandwillnotbetakenintoaccountfortheannualmaximumlimit.

5. HealtH anD safety in tHe worKplace The employer is guarantor of the health andsafety in theworkplaceand, as such, itwill needto take all necessary steps in order to protect itsemployees.Theemployershalltakethenecessarymeasurestoensurethattheuseoftheworkplacedoesnotcreateriskstothehealthandsafetyofitsemployeesor, ifthis isnotpossible,sothattheserisksareminimised.



a. employer’S oBliGation to provide a HealtHy and Safe workplaCe

Thepreventionoflabourrisksshouldbeintegratedin the general management of the company,through the implementation and application of aplanforthepreventionoflabourrisks.Theessentialinstruments for themanagement and applicationof theriskpreventionplan includetheevaluationof labourrisksandtheplanningofthepreventiveactivity.

The process of assessing labour risks is aimed atestimating the enormity of the risks by obtainingthe necessary information, so that the employeris able make an appropriate decision regardingthe need to take preventive measures, includingdecisions regarding the types of measures thatshould be adopted. The evaluation should serveto identify dangerous elements, the employeeswhocouldbeexposedtosuchelements,andthemagnitudeoftherisks.Whentheresultofsuchanassessmentrevealssituationsofrisk,theemployerwill then plan the appropriate preventive activityinordertoeliminate,controland/orreducethoserisks.

A company’s Health and Safety Committee is aninternalbodytaskedwithconsultingonaregularlybasis the company’s actions in the field of riskprevention. Itwillbeconstituted inallcompaniesorworkcentresthathave50ormoreemployees.TheCommitteewillparticipateinthepreparation,implementationandevaluationof riskpreventionplans and programs in the company, as well aspromote initiatives on preventive methods andprocedures.Inanycase,employersmustmeettheminimum request established by law regardingtheir constructive conditions, order, cleanlinessandmaintenance,signposting,serviceinstallationsor protection, environmental conditions, lighting,sanitaryandlocalrespiteservices,equipmentandfirstaidaccommodations.

B. Complaint proCedUreS

In addition to whistleblower regulations,employees can file complaints, either during orafteremployment.Somecompaniesofferinternalcodes of conductwith procedures in this regard.

Statutorylawdoesnotenforceaspecificprocedureto be followed, however. Besides internalcomplaints before the company, employees areentitled to report any violationof the lawbeforetheLabourInspectorate,whichisanadministrativebody meant to guarantee employment rights.All actions and claims carried out by employeesin defence of their rights are protected fromanyformofretaliation.Therefore,anyclaimregisteredinternally, or externally before third parties,will effectively serve to protect employees fromretaliation.

C. proteCtion from retaliation

Theprotectionfromretaliationistherightofeveryemployeetonotbepunishedforraisingcomplaintsof discrimination or harassment, for participatingin legal proceedings or internal investigations,or for having exercised any type of labour rightsthataffectthempersonallyoraffectathird-party.Retaliation can include any negative job action,such as demotion, discipline, dismissal or salaryreduction. The consequence of any action takenbythecompanywiththeintentionofareprisalwillmakeitnullandvoid.

TheprotectionfromretaliationisframedinArticle4. 2 g) of the Workers’ Statute, which declaresthatworkershavetherighttoexerciseanyactionsderiving from their work contract, as similarlydefinedinArticle24.1oftheSpanishConstitution,whichestablishesthat“everypersonhastherighttoobtaintheeffectiveprotectionofthejudgesandthecourts in theexerciseofhisorher legitimaterights and interests, and in no case may he goundefended”. Case law has been modelling andconstituting the case-by-case assumptions inwhich aworker is protected. However, not everyclaimwill grant the employee a valid protection.Recklessorbaselessclaimswiththesolepurposeof searching for a specific type of protectionwillnotbeeffective.Thereisaproperlegalprocedureto claima violationof retaliation inprotectionoffundamentalrightsandpublicliberties.



V. Anti-diSCriminAtiOn laws1. brief Description of Anti-diSCriminAtiOn lawsEmployees are entitled not to be discriminateddirectlyor indirectlyduring theiremployment forreasonsofsex,maritalstatus,agewithinthelimitsestablishby the law, racialorethnicorigin, socialstatus, religion or belief, political ideas, sexualorientation, affiliation with a union (or not), orfor reason of language, inside the Spanish State.Employees may not be discriminated against forreasonof disability, provided that, they are fit toperformthejobinquestion.

2. extent of protection Any direct or indirect discrimination includedin regulatory provisions, clauses in collectiveagreements,individualagreements,andunilateraldecisionsbyemployers shall bedeemednull andvoidandcouldbesubjecttoacomplementaryclaimfordamages.Amongothercausesofdiscrimination,are those for reasonofageordisabilityhandicapand in regarding remuneration, working hoursand other working conditions for reasons of sex,origin, including racial or ethnic origin, maritalstatus, social status, religion or beliefs, politicalideas, sexual orientation,membership (or not) ofunions and their agreements, kinship links withother workers in the company and language inSpain.Thedecisionsof theemployer that involveunfavourabletreatmentofemployeesasareactiontoa complaintor toany legalproceedingsaimedatenforcingcompliancewiththeprincipleofequaltreatment and non-discrimination,would also benullandvoid.

3. protections against HarassmentEmployees are entitled to protection and respectof their privacy and due consideration for theirdignity, including protection against harassmenton the reason of racial or ethnic origin, religionor belief, disability, age or sexual orientation andagainst sexual harassment and gender basedharassment. Harassment for reasons of racial orethnic origin, religion or belief, disability, age orsexualorientationemployerorpeopleworking inthe company is considered a breach of contract.The employer could face a constructive claimfor dismissal via article 50,whichbasicallywouldentitle the employee to the same amount as anunfair dismissal, if the employee brings to courtseriousevidenceoftheharassmentactivitiesbytheemployer.Thisclaimcanbecomplementedwithanactionformoraldamagesagainstthecompany.

4. employer’s obligation to proviDe reasonable accommoDations SpanishLabourLegislationrequirestheadoptionofinternalrulesincompaniesorcentresthatpromoteandstimulatetheeliminationofdisadvantagesorgeneralsituationsofdiscriminationagainstpersonswithdisabilities,includingreasonableadjustments.

Employers are required to take appropriatemeasures for adapting the workplace andaccessibility of the company, depending on theneedsofeachspecificsituation,inordertoenablepeople with disabilities access to employment,



job progress and access to training, unless suchmeasureswouldimposeadisproportionateburdenontheemployer.Todeterminewhetherachargeisexcessive,thecourtwillconsiderwhether,iftaken,it is sufficiently remedied by measures, publicgrantsorsubsidiesforpeoplewithdisabilities.

Spanish regulations oblige companies with morethan 50 employees to reserve a quota of 2% oftheirstafffordisabledpeople.

5. remeDiesIf an employee considers that the employmentrelationship has been extinguished by anydiscriminatoryreason,he/sheisentitledtojudiciallydemandtheprotectionofhisorherlabourrights.

When the employer’s decision to terminatea contract includes some of the causes ofdiscrimination prohibited by the Constitution orthelaw,orhasoccurredinviolationoffundamentalrights and public freedoms of workers, theterminationdecisionwillbedeemednullandvoid,andtheemployeewillbeentitledtoreinstatementand–wheneverproven–tomoraldamagesaswell.



vi. pay equity laws 1. extent of protection Threekeymeasuresofferprotection:

•OrganicAct3/2007of22March,fortheeffectiveequalitybetweenwomenandmen;

•RoyalDecree-Law6/2019of1March,onurgentmeasures to guarantee equal treatment andopportunities between women and men inemploymentandoccupation;and

•Directive2006/54/ECoftheEuropeanParliamentandoftheCouncilof5July2006,ontheapplicationoftheprincipleofequalopportunitiesandequaltreatment for men and women in matters ofemploymentandoccupation.

The Organic Act 3/2007 establishes the principleof equal treatment and opportunities for menand women. The central, regional and localgovernmentswillactivelymainstreamthisprinciplein the adoption and implementation of theirlegislativeprovisions.Moreover,fromtimetotime,theStateGovernmentwillapproveaStrategicPlanfor Equal Opportunities covering all areas of itscompetence,whichwillincludemeasurestoattaintheobjectiveofequalitybetweenwomenandmenand eliminate discrimination on the grounds ofgender.Additionally, article11of theOrganicActregulatesaffirmativeactions,statingthat inorderto ensure the effectiveness of the constitutionalright to equality, public authorities will adoptspecific measures favouring women to correctsituations of obvious inequality with respect tomen. Such measures, which will be applicablewhilethesituationexists,mustbereasonableandproportionaltotheobjectivepursuedineachcase.Furthermore, equality plans are regulated underChapter III of the Organic Act. These regulationsestablishthatcorporateequalityplanscompriseaset ofmeasures adopted after a diagnosis of thesituation and shall be designed to attain equaltreatmentandopportunitiesforwomenandmenwithin said company. Equality planswill stipulate

the specific equality objectives to be reached,the strategies and practices to be adopted toattain them, and the establishment of effectivemonitoringandassessmentsystems.

2. remeDies Employees can change equal pay practicesthrough their participation in the application andelaboration of equality plans. The applicationand elaboration of equality plans is compulsoryfor companies with over 250 employees, whenmandated in the collective bargaining agreementandwhenthelabourauthoritiesagreetosubstitutetheformulationandimplementationofsuchaplanfor accessory penalties, resulting from penaltyproceedings. Royal Decree-Law 6/2019 modifiestheOrganicActandrequirescompanieswith50ormoreworkerstodraftequalityplansandmandatesthat such plans shall be registered accordingly.Applicationofthisobligationshallbegradualandsystematic.Enterprisesmusthaveanequalityplaninplaceasof:

•7March2020forcompanieswithmorethan150to250workers;

•7March2021forcompanieswithmorethan100to150workers;and

•7 March 2022 for companies with 50 to 100workers.

Ifanemployeebelievesthatthecompanydidnotadhere toanequalpaypractice,he isentitled toinitiatean internaldemand (within thecompany)fortheprotectionofhislabourrights.However,ifthecompanydoesnothaveaninternalprocedureforthistypeofclaim,ademandcanbefiledwiththecourtsortherelevant labour inspectionauthorityinordertoguaranteetheequalpayprovisions.



3. enforcement/litigation Examples of remuneration discrimination canbe found in case law related to the existence ofa double salary scale. Specifically, the SupremeCourt’s ruling of 5 March 2019, held that thecompany’ssalarystructurecomprisedanunlawfuldoublepayscalebasedonapersonalcomplementof seniority, which led to a policy to establishwage differences betweenworkers as a result oftheir entry date into the company, exclusively.Likewise,thediscriminationinremunerationisalsomanifested in the classification and professionalpromotion of employees. For example, therewas a case involving temporary female workerswhowereassigneda lowerprofessional categoryupon agreement of a fixed-term contract, thanthe professional category that was assigned totemporary male workers. However, the leadingcaselawrelatingtodiscriminationisthejudgmentrenderedon1 July 1991, involvingdiscriminationin remuneration established in the CBA betweentheprofessionalcategoryoflabourer(mostlymen)and theprofessional categoryof cleaners (mostlywomen),whenbothprofessionalcategoriescarriedout manual work of equal value at the GregorioMarañónHospital.

4. otHer requirementsInternationallaw,EuropeanUnionlawandSpanishnational law, have recognised and protected therightofwomenandmentoreceiveequalpayforworkofequalvalue.Atthenationallevel,theRoyalDecree-Law6/2019of1March,introducedseveralmodificationsintheWorkers’Statute,specificallyinrelationtotheterm‘workofequalvalue’mentionedin article28of said law.Prior to itsmodification,itonlyestablishedthat theemployerwasobligedtopaythesameremunerationfortheprovisionofworkofequalvalue.AfterthemodificationmadebytheRoyalDecree-Law6/2019,asecondparagraphwas introduced specifying what is understood as‘workofequalvalue’–

“A work will have the same value as anotherwhenthenatureofthefunctionsortasksactuallyentrusted,theeducational,professionalortrainingconditions required for their exercise, the factors

strictly related to their performance and theworking conditions in which those activities arecarriedoutareinfactequivalent.”

Royal Decree-Law 6/2019 adds a second and athirdparagraphtoarticle28.Thesecondparagraphestablishes the obligation of the employer tomaintain a Salary Record. This record must becarriedoutregardlessofthenumberofworkersanditmustincludetheaveragevaluesofsalaries,salarysupplements and extra-salary perceptions, suchvalues being separate by gender and distributedbyprofessionalgroups,professionalcategoriesandequal job posts or job posts of equal value. Thepurposeofthisrecordistoobtainaglobalvisionofthe remuneration received byworkers, accordingtotheirgenderandforperformingworkof“equalvalue”.Suchrecordswillbeavailabletoemployeeswho have the right of access through their legalrepresentatives.

Furthermore, the new third paragraph of article28 provides that, in companies with at least 50workers,whentheaverageoftheremunerationofonegenderishigherthantheotherby25%ormoreconsideringthetotalpayrollortheaverageofthepaidperceptions,theemployerhastheobligationto include in theaforementioned salary record,ajustificationtoprovethat thedifferencedoesnotcorrespondtoreasonsrelatedtothegenderoftheworkers. In this sense, Royal Decree-Law 6/2019furtheraddedanewsection3 toarticle9,whichprovidesthat,intheeventofinvalidityduetowagediscriminationongroundsofgender,theworkerwillhavetherighttotheremunerationcorrespondingtoequalworkorworkofequalvalue.



vii. social meDia anD Data privacy 1. restrictions in tHe worKplaceIn Spain, the new culture resulting from thedevelopment, implementation and use of newpossibilities such as social media and othertechnologies enabling mass dissemination ofinformation, is changing thewaypeople relate toeachother inallfields.Theworkingenvironmentis no exception. Massive amounts of personalinformationareavailabletoanyonewishingtouseit,andcompaniesareobviouslynot indifferenttothisvaluablesourceofcontent,norcantheyescapefrom this fast and ever-changing technologicalinnovation that allows people to communicateandshareextremelydetaileddataatamuchfasterrate.ThevastmajorityofregulationsapplicabletothemultimediacontentinSpainaredrivenbytheEuropeanUnionCouncilandEuropeanParliament.This European legislation is complimentedby theCourtsof Social JusticeCase law.Theseelementshave provided a set of principles and guidelinesmaking analogies between on-line and off-lineworlds.Still,thewidespreaduseofsocialmediaandthespeedatwhichitevolves,hasclearlyovertakenanyattempttokeeppaceusingthelegalresourcescurrentlyavailabletoprivateusersandcompaniesinmost countries, and this is particularly true inSpain.

In spite of the need, Spain still lacks specificregulation on the subject of using social mediain the employment context. Due to lack of well-defined regulatory legislation, it has been up tothecourtstosolveconflictsbetweenemployerandemployeesregardingtheirrightsanddutiesforuseofsocialmediainconnectionwithemployment.

Thereisnoexpresslegalprohibitionforemployeenot touse socialmedia at theworkplace. Sucha

prohibition can be regulated by the employer bywrittenform,withadetailedpolicyonsurveillanceand control of the company’s property and theuse of social media tools during working hours.Although there is no need to seek approvalwiththe employees’ representatives to implement ornegotiate such policies, some companies chooseto negotiate directly with these representativebodies,beforecommunicatingsuchpoliciestotheindividualemployees.

Therefore,iftheemployerconsiderstheparticularuse of multimedia contents by its employeesdetrimental to the company’s activities, theemployermaywithinitsresponsibilities, issuetheappropriateguidelinesandinstructionstoregulatetheuseofthesetoolsandseekgreaterproductivecapacity from the employees, and even prohibittheuseofsocialmediaattheworkplace.

Thus, themeasuresusedbytheemployerwillbeassessedaccordingtotheprincipleofproportionalitymeaningthemeasurestocontroltheemployeeatthe workplace have to be justified, appropriate,necessary and balanced. According to a generalformulation, the principle of proportionality maybe applied to conflicts between fundamentalrights.Thisisbasedonthreetypesoftest:first,iftheapplicationof themeasure is able toachievetheobjective(judgmentofsuitability);second,ifitisnecessaryandthereisnoothermeasurewhichislessaggressive(judgmentofstrictnecessity);third,ifitisbalancedandobtainsmoreadvantagesthandisadvantagesforthegeneralinterest(judgmentofstrictproportionality).

a. Can tHe employer monitor, aCCeSS, review tHe employee’S eleCtroniC CommUniCationS?



Article 20.3 of the Workers’ Statute recognisestheemployer’srighttotakethemostappropriatemeasurestocontroltheworkoftheiremployees,soaslongastheydonotviolatetheirfundamentalrights.

Case lawof theEuropeanCourtofHumanRightsand Spanish Courts have established that whenthe electronic communication systems usedby employees are owned by the company, andthereforesusceptibletobeingconsideredasworkinstrumentsandtools,theymaybesubjecttotheemployer’s control. However, for the monitoringof theelectroniccommunications tobevalid, theemployermustcomplywiththefollowing:

•establish guidelineson theuseof thesemedia,and inform theemployees that theuseof suchdevicesislimitedtoprofessionaltasks;and

•warn or notify employees, in advance, of thepossibilitytocontrolandmonitortheirelectronicdevicesand thepossibility topenalise themforimproperuse.

2. employee’s use of social meDia to Disparage tHe employer or Divulge confiDential informationWithoutclearpolicies,itcanbedifficulttolawfullysanctionemployeesformisuseofsocialmedia.TheHighCourtofJusticeofMadridacceptedoffensivestatements posted on Facebook by an employeeas evidence towards the appropriateness of theemployer’sdisciplinaryaction.TheHighCourtfoundthedismissalof theemployee tobe fair,becauseofthecompany’scodeofconduct,whichexplicitlypermitted disciplinary measures for offensive ordefamatory remarks made by employees againstthecompany.

It is important to have a social media policyimplementedbytheemployerandcommunicatedto the employees, in order to control the use ofcompany resources and tools. Also, some courtsinfirstinstanceconsideritnecessarytoincludein

suchapolicy, that itmaybeused fordisciplinaryreasons against the employee. The company willbeentitledtoenforcethepolicyandsanctiontheemployeewheneverbreached.

It is advisable to provide such a policy to theemployees at thebeginningof their employmentrelationship; firstly, by defining how socialmediamay or may not be used for private use duringworking hours; secondly, identifying what non-confidential company information can or cannotbe posted by employees on socialmedia sites, ifany.This canbe included in theemployee’sworkcontract.



viii. termination of employment contracts 1. grounDs for termination InSpain,thefollowingaregroundsfortermination:

•mutualconsentoftheparties;•groundsestablishedinthecontract;•expiration of the contract term or end of thespecificjob;

•employee’sresignation;•employee’sdeathorpermanentillness;•retirementoftheemployee;•employer’s death, retirement or permanentillness;

•force majeure that makes it impossible tocontinuerenderingservices;

•collectivedismissalbasedonobjectivegrounds;•employee’svoluntarydeparturebasedonbreachofcontractbyemployer;

•disciplinarydismissaloftheemployee.

2. collective DismissalsTerminations based on economic, technical,organisationalorproductivitygroundsaredeemedcollective when: ten (10) workers are affectedin companies with less than one hundred (100)workers;atleast10%oftheemployeesareaffectedwithin a period of ninety (90) days in companiesthat have between one hundred (100) and threehundred (300) workers; thirty (30) workers incompanies with three hundred (300) or moreworkers.

3. inDiviDual DismissalsTerminationcanbebasedonobjectivegroundsordisciplinarygrounds.

a. reaSonS for oBjeCtive diSmiSSal

•worker’sincompetence;•worker’sinabilitytoadapttotechnicalchange;•layoffs based on economic, technical,organisationalandorproductivitygrounds.

Given that labour courts are so restrictive inaccepting dismissals based on business grounds,thisprocedureisseldomused,unlessthegroundsareabsolutelyclear(e.g.,bankruptcy).

B. reaSonS for diSCiplinary diSmiSSal

•repeated and unjustified tardiness or lack ofattendanceatwork;

•lackofdisciplineorinsubordination;•verbalorphysicaloffencetowardstheemployer,otherpeopleworkinginthecompanyorresidingfamily;

•contravention of contractual good faith andmisuseoftrust;

•continuous and voluntary decrease of theworker’snormaloragreedperformance;

•intoxicationduetoalcoholordrugs,whencausinganegativeeffectinwork;

•harassment based on: race, religion, birth,gender, age, disability, opinion, social conditionandsexualorientation.

C. iS SeveranCe pay reQUired?

A disciplinary dismissal is onewherein the causeis based on the employee’s behaviour, whichconstitutes a punishable offense. Disciplinarydismissals must be communicated by a writtenlettertotheworker,statingclearlyandsufficiently



thefactsthatmotivateitandthedateonwhichthedismissal will take effect. A disciplinary dismissaldoes not entitle an employee to receive anycompensation from the company. A severancepaymentwillonlyberequiredincasesthatinvolveacourtrulingdeclaringthedismissalunfair.

d. SeveranCe pay reSUltinG from oBjeCtive diSmiSSal

The severance pay resulting from an objectivedismissal is a tax-free payment in the amount oftwenty (20) days’ salary per year of service, upto twelve (12) months’ salary. If the dismissal isnot correctly proven in court, the employee willbe entitled to the severance explained below forunfairdismissals.

e. SeveranCe pay reSUltinG from diSCiplinary diSmiSSal

Ifthedismissalisprovenincourttheemployeeisentitledtonoseverance.However,ifthedismissalin deemed unfair by the judge or acknowledgedas unfair by the company before the ConciliationChamber or the Court, the relevant tax-freeseverance is thirty-three (33) days’ salary peryear of service, up to twenty-four (24) months’pay. However, this calculation must respect thefollowing:

•for the period of seniority rendered before12 February 2012 (the day the labour reformwas approved) the employee is entitled to theindemnityarisingfromacalculationbasedon45daysperyearofwork,withacapof42months.

•for theperiodof seniority as from13 February2012untilterminationdate,theemployeewillbeentitled to compensationbasedon33daysperyearofwork,withacapof24months.Thesumof both amountswill be the legally establishedcompensationfortheemployee.

The maximum cap is now 720 days. However,when the calculation todetermine the severancefordismissalbefore12February2012results inanumberofdaysgreaterthan720,thecapwillthenbe42months.

The parties may agree to a lower or highercompensation.Highercompensationsthatexceed

theonesdescribedabovewillbesubjecttotaxandsocial security contributions (in case of mutuallyagreed terminations), in the amounts describedbelow.

f. CalCUlation formUla and BaSiS for CalCUlation

Severance compensation is calculated under twocriteria:seniorityanddailysalary.Incaseofobjectiveor unfair disciplinary dismissal the severancewillbe calculated bymultiplying the seniority by thedaily salary and the days (20 in case of objectivedismissal/33incaseofunfairdismissal).Thedailysalary is calculated taking into consideration thetwelve(12) lastpayments,andthecompanyshallincludeallsalaryconcepts.Thisalsoincludessalaryinkindandextra-hours.Onlyextra-salaryconceptsshould be excluded. Therefore, bonus, incentivesandirregularpaymentsareincluded.

StockOptionswillbecalculatedfortheseveranceunder certain circumstances: in caseof voluntaryleave or disciplinary dismissal declared fair,the employee will lose the right to include thestock options in the severance for dismissal. TheSupreme Court has said that in the event thedismissalwasdeclaredunfairandwascarriedouta fewmonths before options could be exercised,theywillbeincludedintheseverancefordismissal.Thesamewilloccurintheeventofdeath,disabilityandretirement, inwhichtheemployeeorhis/herheirswillbeabletoclaimthese. Incaseofunfairdismissal,theemployeewillbeentitledtoexercisethe right to stock options after the contract isterminated even if a “permanence clause” hasbeensigned.

4. separation agreementsTermination of contracts based on mutualconsent does not entitle the employee toseverancepayments(unlessspecificallyagreed)orunemploymentbenefits.

a. iS a Separation aGreement reQUired or ConSidered BeSt praCtiCe?



Shouldaseverancebeagreed,itwouldbesubjecttotaxesandsocialsecuritycontributions.Toavoidthe aforementioned, the general practice forcompaniesistodismisstheemployeesothathe/she is entitled to the legal severance and also tounemployment benefits. Although this system isused in a clearmajorityof casesbyemployers, aterminationagreedbymutualconsentthathastheappearance of a dismissal (by giving a dismissalletter to the employee in order to receive theseverance freeof taxesaswellasunemploymentbenefits),isunlawfulandconsideredfraudulent.

B. wHat are tHe Standard proviSionS of a Separation aGreement?

Amutually-agreed terminationwillonly requireasimpleagreementbybothpartiesthatputsanendtotheemploymentrelationship.Insaidagreement,we recommend the parties include certainbackground information that briefly explains thegroundsfortermination,theagreedcompensationand themeansandtimingofpayment, a specificmention to gross and net amounts, and severalother clauses such as confidentiality, non-disparagement,waiver against future actions andpossiblyanon-compete,wheneverappropriate.

C. doeS tHe aGe of tHe employee make a differenCe?

A mutual agreement may be reached betweenparties independent of the employee’s age. Thatsaid, we need to be careful of those separationagreements with employees near retirementage, that are dressed as “dismissal letters”, asthey could be subject to inspection by the statewho will be in charge of paying said employeestheir unemployment benefits and subsequentretirementpension.

d. are tHere additional proviSionS to ConSider?

Inprinciple, theemployeethatsignsaseparationagreement is not entitled to additional benefitsbeyond agreed severance payment, the finalpayments, and any other amounts, agreed upon.If no dismissal letter is given and both parties

agreetomutually terminatethecontract, incometaxpaymentsandsocialcontributionswillbedueby the employee in the event that the contractis terminatedbymutual consentnotonly for theamount that exceeds that of an unfair dismissal,butforthewholeseverancepaid.

Thecompanywillhavetotakethewholeseverancecompensation and apply to it the employee’sexistingtax%inhisordinarypayroll.Likewise,itwillalsocontributetothesocialsecurityasexplainedabove.

Ifamutuallyagreedtermination(withnoseverancepayment) is not correctly addressed, for exampleby not having a detailed termination agreement,with inclusion of a waiver clause, the employeemaychallengetheterminationbyfilingadismissalclaim against the employer. In this case, if theemployeeprovesthattheterminationwasreallyadismissal andnot amutually agreed termination,theemployermaybe liable topay themaximumseverance explained for unfair dismissals. Theseamounts would then be free of taxes and theemployee would be entitled to unemploymentbenefits.

5. remeDies for employee seeKing to cHallenge wrongful terminationAnemployeeisentitledtoappealagainstanysuchdismissal.However,priortofilingaclaimwiththecourts,thepartiesarerequiredtotrytoreachanagreement before theMediation,Arbitration andConciliation Service. When the employee files aclaimbeforethecourt,thecourtwillrenderoneofthefollowingjudgments:

fair Dismissal–inwhichcase,theemployerwillnotbe subject to anypenaltiesor furtherobligationstowardstheemployee.

unfair Dismissal–iftheemployeeissuccessfulinhisclaim,theprincipalremediesavailableare:

•reinstatement,withfinancialawardtocoverlostremuneration;or



•an awardof 33 days salary per year of service,subjecttoamaximumof24months’salary.

Thechoiceofremedy,whethertomakeseverancepayments or to reinstate, is the decision ofthe employer. However, in cases involving thetermination of an employees’ representative, therepresentativeistheonewhowillenjoythechoiceofremedy.

Null and Void Dismissal – a court will declarethe dismissal null and void (and will awardreinstatement, with financial award to cover lostremuneration) where a fundamental right of theemployeehasbeenbreachedduringthecourseofthedismissalprocedure,forexample:

•where the dismissal involves an element ofdiscrimination prohibited by the SpanishConstitution or statute, or which otherwiseviolatestheemployee’sfundamentalrights;

•where the employer should have used thecollectiveprocedure;

•where the employer has dismissed any of theprotected categories of employees and has notjustifiedthedismissalcorrectly.

Iftheworkerisanemployees’legalrepresentativeoratradeunionrepresentative,therewillbeformaladversarial procedures, during which the workerandothermembersoftheuniontowhichheorshebelongs,maybeheard.Iftheworkerisamemberofatradeunionandtheemployerisawareofthisfact, representatives of the corresponding tradeunionmustbeheardinadvance.Lastly,intheeventofcollectivedismissal,theworkers’representativeshavepriorityforremainingintheenterprise.

Thereisnoabsoluteprotectionagainstdismissalincasesofpregnancy,suspensionofthecontractduetomaternityleave,riskduringpregnancyorbreast-feeding leave; adoption or fostering; family leaveto care for childrenor handicappedpersons; andcertaincircumstanceswherefemaleworkershavebeenvictimsofgenderviolence.

Dismissal in such cases will be allowed if notmotivatedbyreasonofpregnancyortheexerciseoftherighttotheabovementionedleaves(dismissalforanobjectivecauseanddisciplinarydismissal).

6. wHistleblower laws Thereisnospecificemploymentlegislationinplacethat provides legal protection forwhistleblowers.However,internalcompanypoliciesusuallyprovideforprotectionaswellregulatespecificproceduresto report illegal practices. Internal policies mustbe implemented in accordance with what isestablished within the law and regulations. Themost recent reform of the Criminal Code, whichcame into force on 1 July 2015, introduced theneed to have internal prevention mechanismsand channels in order to reduce or avoid anypotential criminal liability for companies or theirrepresentatives.WhistleblowerprogramshavealsobeenregulatedbytheDataProtectionAuthority’s(‘DPA’) guidelines, in particular by the “Guide forData Protection in Labour Relationships”. Usually,protection in an internal policywill be limited tothe company’s employees, which have a directhierarchicalrelationwiththecompany.

Outsourcing services, agency workers orindependent contractors do not fall under theorganisationalscopeoftheemployer,butthisdoesnotmeanthattheycannotbeprotectedincaseanybreachneedstobeviolated.Thereportingsystemmustrelyonwrongdoings,whichcouldaffectthecontractual relationship between the companiesand the incriminated employee. There are somecompanies that have created “ethical mailboxes”where an employee can report alleged breachesof the company’s internal code of conduct. Thecompany will need to ensure that its employeesare well-informed about this system, how itworks and most importantly, how their privacyand confidentiality concerning the information inthe complaint will be guaranteed. The reportingsystem is created to uncover wrongdoings byother employees or company officials, whichcouldbeconsideredabreachof theircontractualrelationship.

The main principle, however, is that confidentialinformationisonlyavailabletothosepeoplewhoareessentialtotheinvestigationofthecomplaint.Thewhistleblower’s identitywillonlyberevealedif he/she acted in bad faith. The accused personwillneedtobeinformedoftheaccusationsagainsthim,withoutfurtherdelay,andusuallytherewillbeadepartmentresponsiblefortheinvestigationand



therightsconcerningdataprotection,althoughthiscan be delegated to an external advisor, as well.Theregisteredinformationwillbedestroyedwithina maximum of twomonths after the end of theinvestigationifnothingcomesoutofit.Ifthereisalegalcase,theinformationcanberetainedaslongasneededbythecompany.

Thepossibilityoffilingananonymouscomplaintisgenerallyprohibited,becausethere isarealneedtoidentifythecomplainantandtheaccusedparty.Finally, thebody responsible for the investigationwill need to inform the accused party regardingtheprotectionandconfidentialityoftheirpersonalinformationduringallstagesof theprocess,evenuponitsconclusion.



ix. restrictive covenants 1. Definition of restrictive covenantsRestrictive covenants are bilateral agreementsbetween the employer and the employee, andareused toprotectkeybusiness informationandensurefairdedicationtoemployees.Itrepresentsalimitationoftherighttoworkandthefreechoiceof profession or trade, so that any restriction ofthis constitutional right must be performed incompliance with all requirements established bylabourlaw.Non-competitionrightsandobligationsareregulatedintheWorkers’Statute.

2. types of restrictive covenants

A. non-compete cLAuses

Non-competition agreements are intendedto prevent an employee from working in acompeting company or sector after terminationof employment. A non-compete obligation aftertermination,maynotlastlongerthantwoyearsfortechniciansandsixmonthsforotherworkers,andwillonlybevalidifthefollowingrequirementsaremet:

•the employer has an effective industrial orcommercial interest in such a non-competeobligation;and

•the employee is paid adequate economiccompensation.

b. non-soLicitAtion of CUStomerS

Spanish Labour Legislation does not specificallyregulate this typeof restriction,but case lawhasconsideredthisrestrictionvalidwithinthescopeofthenon-competeclause.

c. non-soLicitAtion of employeeS

Spanish Labour Legislation does not specificallyregulate this typeof restriction,but case lawhasconsideredthisrestrictionvalidwithinthescopeofthenon-competeclause.

3. enforcement of reStriCtiVe COVenAntS – process anD remeDiesIf the employee breaches the non-competitionagreement, he/she will be obliged to return theamount received for this concept and may berequired to pay damages, should the companyprovide evidence of damage. In case of doubtwhen determining the amount of compensationto be returned, or refusal from the employee tocomplywiththeagreedpaymentascompensation,the employermay appeal to a social court or anarbitrator(whenspecificallyagreed)todeterminesaid amounts. Likewise, the employee can makea claim against the employer when the agreedcompensation was not paid although the non-competeclauseremains in fullenforceability.Theclause itself could be declared void if the legalrequirementsexplainedabove(2a)werenotmet.However,itisalsopossibletocanceltheagreementif both parties agree to it, but it can never becancelledorwaivedunilaterally.



4. use anD limitations of garDen leave The term during which an employee remains onnormalsalaryandisboundbyhis/hercontractofemployment, but at the sametime requested bythe employer not to attend the office or contactclients or customers, is usually used only ondisciplinary procedures while the investigationtakesplace.Theemployercannot,unlessexpresslyreferred to in the employment agreement, puttheemployeeundergardenleave,astheyarenotprovidedforstatutorily.Thisisthereasonwhytheymayonlybemutuallyagreedtowithinthescopeoftheemploymentcontract.

In the event an employer puts an employeeon garden leave without having regulated thispossibilitywithinthecontract,theemployerbearsthe risk of having the employee file a claim forlackofoccupation,whichultimatelymayresult ina court claim requesting a constructivedismissal,onthebasisofaseverebreachoftheemployer’sdutiesfornotprocuringsufficientoccupation.

Employers often use garden leave during anemployee’snoticeperiodtopreventtheemployeefrom having further access to customers, clientsandstaffandtopreventtheemployeefromworkingforacompetitor,butthisisgenerallyusedinSpainonlywhenthereisevidenceofgrossmisconductbytheemployee.



x. transfer of unDertaKings 1. employees’ rigHts in case of a transfer of unDertaKingEmployees’rightsandobligationsaresubrogatedtothenewshareholderandremainintact;thisincludesspecialbenefitsandretirementcompensationthatemployeesmaybeentitledto.

2. requirements for preDecessor anD successor partiesThe Workers’ Statute requires formal notice toemployeesintheeventoftransferofundertakings,including date or proposed date of the transfer,reasonsforthetransfer,legal,economicandsocialimplicationsfortheemployees,andanymeasuresenvisagedinrelationtotheemployees.

Employmentcontractsareautomaticallytransferredwiththebusinesstothenewemployer.Employees’rightsandobligationsarealsotransferred.



xi. traDe unions anD employers associations 1. brief Description of employees’ anD employers’ associations TheSpanishConstitutiongrantsunionstheauthorityto promote and defend the workers’ economicinterests. It also empowers them to representworkersincollectivebargainingandtoparticipatein the preliminary mandatory conciliation steps,beforedisputescanbepresentedtogovernmentalconciliationagencies.

2. rigHts anD importance of traDe unionsFreedom of association and representation arefundamental rights in the Spanish Constitution.All employees (except senior executives, i.e.,generalmanagers)arerepresentedbytheelectedrepresentatives. There is no distinction betweenblue and white-collar representatives. It is theemployees’dutytostarttheprocessofelections,andthus,theemployerhasnoobligationtopromotethem.Freedomofassociationand representationincludesthefollowingrights:

•right toassociate freelywithanyof theunions;thisisaright,notanobligation;

•right to establish unions without priorauthorisation,bothnationallyandinternationally;

•righttochooseemployeerepresentatives;•righttoparticipateinunionactivities;•righttokeepassociationpreferencesprivateandnotcommunicatethemtotheemployer.

3. types of representationTherearetwotypesofemployees’representation:individualdelegatesandworkscouncils.Individualdelegates represent workers in companies orworksites having up to fifty (50) workers.Wherethe companyor theworksite hasmore thanfifty(50)workers,workerswillappointaworkscouncilformedbythefollowingnumberofmembers:

a. nUmBer of repreSentativeS

•50to100workers:5members•101to250workers:9members•251to500workers:13members•501to750workers:17members•751to1000workers:21members•more than 1000workers: 2members for every1000workers,upto75members.

B. appointment of repreSentativeS

Theworkerschooserepresentativeswhenelectionsarecalled.Thevoteisfreeandsecret.

4. tasKs anD obligations of representativesWorks councils and delegates are entitled topreside over and organise assemblies, take legalandadministrativeactionandraiselegaldisputes.Theyarealsoentitledtooverviewandcontrolthecompany’s fulfilment of its obligations regardingsafety,security,andanyotherregulationsinforce.



Workscouncilsanddelegatesareentitledtoreceiveinformation on the company’s performance, themarket and particularly on employment. Theyareentitled to consultation in situationsaffectinga number of employees exceeding the threshold(around10%ofworkforce),namelyrelocationofaworksite,changeofemploymentterms,collectiveredundancyormasslayoffs,mergers,etc.

5. employees’ representation in managementDue to the principle of mutual trust betweenthe employer and senior executives, the lattercannot be eligible nor participate as electors inthe employees’ representation for they (seniorexecutives) cannot defend or represent oppositeintereststothoseofthecompany.

6. otHer types of employee representative boDies ThemostbasicformofcollectiverepresentationinSpanish employment law is known as “PersonnelDelegate”or“StaffRepresentatives”.Representationof theworkers inacompanyorworkcentrewithlessthanfiftyandmorethantenworkersshallbeentrusted to the staff representatives. Theremayalso be a staff representative in companies orcentresthatemploybetweensixandtenworkers,if so decidedby themajorityworkers. Through afree, individual, secret and direct suffrage, theworkersshallchoosetheirstaffrepresentativesasfollows:uptothirtyworkers:one;betweenthirty-oneandforty-nine:three.Thestaffrepresentativesshall jointly exercise vis-à-vis the employer therepresentation to which they were elected, andshall hold the same powers established for theworkscouncils.

The employees are entitled to participate in thecompanyonissuesrelatedtohealthandsafetyintheworkplace. Health and Safety representativesareelectedbyandamongstaffrepresentatives inthefieldoftherespectivebodiesofrepresentation,andspecialiseinhealthandsafetymattersatwork.

Alongwiththis,theHealthandSafetyCommitteeis established as the joint body together withrepresentativesoftheemployerbeing involved inthesametasks.

The works council is the representative andcollegiatebodyofalltheworkersemployedbythecompany or work centre in charge of defendingtheirinterests;itshallbeestablishedineachworkcentrewitharegisteroffiftyormoreworkers.

Acompanythatholdstwoormoreworkcentresinthesameprovinceorneighbouringmunicipalities,which register less than fifty workers but which,overall,totalthisamount,shallhaveajointworkscouncil. If certain centres have fifty workers andothers in the same province do not, the formershall have their ownworks councils and anothercouncilshallbeestablishedwiththeremainder.

A CBA must establish the incorporation andoperationofaJointCouncil(“ComitéIntercentros”)up to a maximum of thirteen members, to beappointed from amongst the members of thevarious councils. When incorporating a JointCouncil,thetradeunionproportionalityaccordingto the election results taken as a whole shall bemaintained. Such Joint Councilsmay not take onother duties than those expressly granted in theCBAwherebytheirincorporationisagreed.

a. nUmBer of repreSentativeS

Thenumberofmembersoftheworkscouncilshallbedeterminedaccordingtothefollowingscale:

•between50and100workers:5members•between101and250workers:9members•between251and500workers:13members•between501and750workers:17members•between751and1000workers:21members•1000andabove:2pereverythousandorfraction,uptoamaximumof75members.

B. appointment of repreSentativeS

Thecollectiverepresentationstructuresareattherequestofemployees.Thereisnoobligationtoputin place employees’ representatives. Theelectionprocessmaybepromotedby:



•themostrepresentativeunionsofthesector;•trade union organisations with at least a 10%representationinthecompany;

•employeesbymajorityagreement.

The works councils or work centre shall choosefrom amongst their members a chairman andsecretaryofthecouncil,andshalldrawuptheirownprocedural regulations, which must comply withthelaw,acopyofwhichshallbesenttothelabourauthority, for its records,andto thecompany.Allcouncilsshallmeeteverytwomonthsorwheneverthisisrequestedbyathirdofitsmembersorathirdoftheworkersrepresented.

C. taSkS and oBliGationS of repreSentativeS

A works council shall have the followingpowers, although it is understood that also staffrepresentativeswillbeentitledtothesamerights:

•to receive information, provided at least on aquarterlybasis,onthegeneralperformanceoftheeconomicsectortowhichthecompanybelongs,onthecurrentproductionandsalessituationofthecompany,ontheproductionandperformanceforecasts for company employment, includingtheemployer’sforecastsontheexecutionofnewcontracts,indicatingtheirnumberandtheformsandtypesofcontractstobeused,includingpart-time contracts, the working of extra hours bypart-timeworkersandsub-contracting.

It shall alsobeentitled to receive information, atleast each year, on the company’s application ofthe right of equal treatment and opportunitiesbetweenmenandwomen,toincludedataontheratioofwomenandmeninthevariousprofessionalcategoriesand,ifapplicable,anymeasuresadoptedto encourage the equal treatment of men andwomeninthecompanyandtheapplicationofanyequaltreatmentplan.

•to receive information on the balance sheet,profit and loss account, annual report and, ifthe company is a corporation based on sharesor participations, of any other documentsprovidedtothemembers,inthesameconditionsapplicablethereto.

•to receive information of the employmentcontracts and the notification of any renewalsandcontractualrepudiations.

•to receive information on the very serioussanctionsissuedtoemployees.

•tobeinformedandconsultedaboutallcompanydecisions that may imply relevant changes intermsofwork organisations and contracts, andalsoconcerningstaffreductionplans.

The works council is entitled to issue a reportbeforetheemployerexecutesanydecisionstakenonthefollowingmatters:

•staff restructuring and total or partial, final orprovisionalremovalsofstaff;

•areductionintheworkingschedule;•total or partial transfer of employees to otherpremises;

•merging operations of the company that mayimplyanychangewhatsoeverof thenumberofemployees;

•plans for professional training provided by thecompany;

•implementationorreviewofworkarrangementandcontrolsystems;

•astudyofworkinghours,apremiumorincentivesplanandtheappraisalofworkposts.

Tocarryoutthefollowingtasks:

•toensurethefulfilmentofcurrentlabour,socialsecurity and employment rules, including anyotheragreements,conditionsandtermscurrentlyappliedby the company,filingany legal actionsthatarenecessarybeforetheemployerandthecompetentbodiesorcourts.

•to supervise and control all safety and hygieneconditions in the execution of work at thecompany.

•to ensure that theprincipleof equal treatmentand opportunities betweenmen andwomen isupheldandapplied.

•to participate, as determined in a CBA, in themanagement of any social projects establishedinthecompanytothebenefitoftheworkersortheirrelatives.

•tocooperatewiththecompanymanagementtoprocure the necessary measures to ensure themaintenanceandincreaseinproductivitylevels,accordingtowhatisagreedintheCBAs.



•toinformtherepresentedworkersofalltheissuesandmattersdescribed inpart1.ofthissection,if they directly or indirectly affect employmentrelations.

•tocollaboratewiththecompany’smanagementin establishing and starting up conciliationmeasures.

AnyreportstobeissuedbytheCouncilbeyondthepowersrecognisedabove,mustbedrawnupwithinatermoffifteendays.



xii. employee benefits 1. social securityIn Spain, the legal framework for the principalsystemofsocialprotectionisderivedprimarilyfromtheSocialSecurityAct1/1994.Thesocialsecuritysystemofnationalinsurancecontributionscovers:

•common contingencies, these contributionscoverthesituationsincludedinthegeneralsocialsecurityregime;

•professional contingencies cover expensesresultingfromlabouraccidentsandoccupationaldiseases;

•overtime;and•otherconceptssuchasunemployment, trainingortheWageGuaranteeFund.

2. HealtHcare anD insurancesSocial security offers public medical care to allaffiliatedworkers.

3. requireD leave

a. HolidayS and annUal leave

Employeesareentitledtoaminimumofthirty(30)daysofpaidvacationperyear.Thiscanbeimprovedby contract or collective agreement. In addition,there are fourteen (14) public non-working daysperyear,whichmaydifferslightlybyregion.

B. maternity and partner leave

RoyalDecree-Law6/2019entered into forceon8March 2019. This regulation aims to achieve realandeffectiveequalitybetweenmenandwomeninthepromotionofpersonalandfamilylife.ThenewRoyal Decree introduces a novelty in paid leavesforbirthandadoption,whichapplies toallbirthsthatoccurredafter1April2019.Thisnoveltyistheequalisationofthetimeforbothparentstoenjoy

theleaveforbirthandadoption.Therefore,everyprogenitor will be allowed to take 16 weeks ofleave.Untilnow,article48oftheWorkers’Statuteusedtoprovide5weeksforpaternityleaveand16weeks formaternity.AccordingtotheRegulation,theterm“Paternity”hasbeenreplacedby“PartnerLeave” and refers to the parent other than thebiological mother. The Regulation foresees agradualapplicationofthetimeallottedfor‘partnerleave’inthecourseofthefollowingyears:

•from1April2019,partnerleavewilllast8weeks•from 1 January 2020, partner leavewill last 12weeks

•from 1 January 2021, partner leavewill last 16weeks.

Inconclusion,fortheyear2020thesituationisthefollowing:

•Maternity leave lasts sixteen (16) weeks.The mother must take six (6) of these weeksimmediately after the birth. The remaining ten(10)weekscanbeorganisedbythemotherunderherdiscretionuntilthechildistwelvemonthsold.However,thebiologicalmothercananticipatethesuspensionuptofourweeksbeforetheexpecteddateofbirth.

•Forbirthsafter1January2020,partnerleavewilllasttwelve(12)weeks.Thepartnermusttakefour(4) of theseweeks immediately after the birth.Theremainingeight(8)weekscanbeorganisedby theprogenitorunderhis/herdiscretionuntilthe child is twelvemonths old. From1 January2021,partner leavewill lastsixteen(16)weeks.This is an individual right of theworker and itsexercise cannot be transferred to the otherparent.

C. SiCkneSS and diSaBility leave

Temporary disability benefits are daily subsidiesthatcovertheworker’slossofincomeduetoanysickness such as common diseases or non-work-related injuries, occupational diseases or work-related injuries. The maximum duration of the



benefit is 365 days, but it can be extended for afurther180daysif,duringthisperiod,thepersonisexpectedtobecured.Incaseofcommondiseases,theworker’sbeneficiariesmusthavebeenaffiliatedin the social security schemeorbeable toprovetohave covereda180-day contributionperiod inthepreceding5years.Incaseofinjuries,whetherwork-related or not, and occupational diseases,previouscontributionsare required.Thecontentsandamountsofthesebenefitsarethefollowing:

•in case of common diseases and non-work-related injuries the amount will be 60% of thebaseratefromthe4thdayofleaveuntilthe20th,inclusive,and75%fromthe21stdayonward.

•incaseofoccupationaldiseasesorwork-relatedinjuriestheamountwillbe75%ofthebaseratefor benefits from the day following the date ofleavefromwork.

Inthecaseofdisabilityofthechildortheadoptedchild or foster care child, the suspension of thecontractformaternityleaveandpartnerleavewillhaveanadditionaldurationoftwoweeks,oneforeachparent.Whoever,forreasonsoflegalcustody,needstobeinchargeofthedirectcareofachildundertwelveyearsofage,orapersonwithaphysicalor sensorial disabilitywho does not perform anypaidactivity,shallhavetherighttoareductionoftheirworkingday,withtheproportionaldecreaseinsalarybetween,atleast,aneighth,andatmost,halfofitsduration.

Workersshallalsohavetherighttoaleaveofnotmore than two years, unless a greater period isestablished by collective bargaining, in order toattend to the careof a familymemberup to theseconddegreeofconsanguinityoraffinitywho,forreasonsofage,accident,illnessorhandicap,cannotfendforhim/herselfandwhodoesnotperformanypaidactivity.

d. any otHer reQUired or typicALLy proViDeD LeAVe(s)

Article 37 of theWorkers’ Statute recognises thefollowingbenefits:

•15calendardaysincaseofmarriage;•2daysforthedeath,accidentorseriousillness,hospitalisation or surgical operation withouthospitalisation, but requiring home rest, of

relativesuptoseconddegreeofconsanguinityoraffinity.Shouldtheworkerneedtotravelforthispurpose,theintervalshallbe4days;

•1dayforchangeofdomicile;•for the indispensable time required to complywithaninexcusabledutyofpublicandpersonalcharacter, including the exercise of activesuffrage. Where a specific period is reflectedin a legal or conventional norm, such provisionshallberespectedasregardsthedurationoftheabsenceanditseconomiccompensation;

•to perform union or personnel representationfunctionsunderthetermslegallyorconventionallyestablished;

•for the indispensable time required to undergopre-natal check-ups and childbirth preparationtechniquesthathavetooccurduringtheworkingday.

4. pensions: manDatory anD typically proviDeD Retirement pensions are included in all socialsecurityregimesandareforlife.Theconditionsforobtainingapensioninclude:

•having turnedsixty-five (65)yearsofage (thereareexceptions:itcouldgraduallychangefrom65to67yearsifitattests38,5ofcontribution);and

•havingpaidnational insurancecontributionsforaminimum of fifteen (15) years – at least two(2)yearsofcontributionsmusthavetakenplacewithinthe15yearspriortoretirement.

IvánSuárezPartner,suárez de [email protected]+34932956000

mailto:isuarez%40suarezdevivero.com?subject=



Suárez de Vivero is a leading law firm in Spainspecialised in employment law, employee benefits,pensionsandsocialsecurity.Since itsorigin in1975,ithasfocusedonoffering itsclientsawiderangeoflegal services concentratingmainly on negotiations,litigationandcompanyrestructuring,andothernon-juridicalareascloselyrelatedtothelabouraspectsofa company, such as economical and organisationalengineering. The firm’s partners are recognised fortheir comprehensive expertise by industry insiderssuch as Chambers and Partners, The Legal 500 andTheInternationalWho’sWhoofManagementLabour&EmploymentLawyers,amongothers.

This memorandum has been provided by:

suárez de viveroTorreInbisa,Planta15-DPlazaEuropa9-1108037,HospitaletdeLlobregatBarcelona,Spain+34932956000www.suarezdevivero.com

suÁreZ De vivero Spain

ContaCt USFormoreinformationaboutL&EGlobal,oraninitialconsultation, please contact one of our memberfirmsorourcorporateoffice.We look forward tospeakingwithyou.

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https://suarezdevivero.com/en/home/

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