[Spain] Unions must receive 6 months' notice of workplace closure

In Spain, the government has introduced a new employment law - Royal Decree 608/2023 - requiring any company ceasing operations to notify trade unions, autonomous community labour authorities and the central government six months in advance of commencing consultation with employees. 

This would mean notifying these bodies six months before informing the workers themselves, Ogletree Deakins provides further details on the legislation and its implications.

The existing obligation to consult with employees prior to implementing dismissals will remain intact and begin at the end of the six-month period. The new requirement - which came into effect on July 13, 2023 - will apply to any company seeking to completely close down operations in a workplace with fifty workers or more.

There have reportedly been surprised and concerned reactions that a law with such significant implications was published without warning in the Official State Gazette (Boletín Oficial del Estado) on July 12, 2023. 

Typically, such significant changes are debated in parliament and passed as an act of parliament, while Royal Decrees are reserved for secondary legislation of minor importance or adding detail to the primary legislation.

Employers in the country are now faced with a far lengthier period during which unions and authorities could dispute a closure decision, starting before the consultation period with workers can even begin. For companies experiencing economic challenges, the additional time could threaten a swift and discreet workplace closure.

A number of uncertainties about the new law have reportedly arisen. The steps or processes to be taken over the six-month period are not defined, however, there are references to some employers qualifying for an exemption from the new rules. But there is a lack of detail about which employers. In addition, the Spanish government has offered little reasoning for the new law and has not specified the consequences a company breaching the rule may face.

According to Ogletree Deakins, neither employer associations nor trade unions were consulted on the new law nor informed in advance of its approval.

Commentators have reportedly expressed concern that this recent measure was introduced without proper scrutiny and debate. In fact, it was introduced as part of a Royal Decree that wasn’t about collective redundancies at all.

The Spanish courts might provide guidance and certainty to these issues through decisions, in time but many employers are likely to hope that the new law is instead removed as quickly as it appeared.

Source: Ogletree Deakins

(Link via original reporting)

In Spain, the government has introduced a new employment law - Royal Decree 608/2023 - requiring any company ceasing operations to notify trade unions, autonomous community labour authorities and the central government six months in advance of commencing consultation with employees. 

This would mean notifying these bodies six months before informing the workers themselves, Ogletree Deakins provides further details on the legislation and its implications.

The existing obligation to consult with employees prior to implementing dismissals will remain intact and begin at the end of the six-month period. The new requirement - which came into effect on July 13, 2023 - will apply to any company seeking to completely close down operations in a workplace with fifty workers or more.

There have reportedly been surprised and concerned reactions that a law with such significant implications was published without warning in the Official State Gazette (Boletín Oficial del Estado) on July 12, 2023. 

Typically, such significant changes are debated in parliament and passed as an act of parliament, while Royal Decrees are reserved for secondary legislation of minor importance or adding detail to the primary legislation.

Employers in the country are now faced with a far lengthier period during which unions and authorities could dispute a closure decision, starting before the consultation period with workers can even begin. For companies experiencing economic challenges, the additional time could threaten a swift and discreet workplace closure.

A number of uncertainties about the new law have reportedly arisen. The steps or processes to be taken over the six-month period are not defined, however, there are references to some employers qualifying for an exemption from the new rules. But there is a lack of detail about which employers. In addition, the Spanish government has offered little reasoning for the new law and has not specified the consequences a company breaching the rule may face.

According to Ogletree Deakins, neither employer associations nor trade unions were consulted on the new law nor informed in advance of its approval.

Commentators have reportedly expressed concern that this recent measure was introduced without proper scrutiny and debate. In fact, it was introduced as part of a Royal Decree that wasn’t about collective redundancies at all.

The Spanish courts might provide guidance and certainty to these issues through decisions, in time but many employers are likely to hope that the new law is instead removed as quickly as it appeared.

Source: Ogletree Deakins

(Link via original reporting)