Legal Options if redundancy in Spain for ‘Economic Reasons’

  • Francisco
    With over 10 years experience providing expert legal advice and representation to English-speaking clients Francisco is a seasoned professional whose primary focus is to ensure his clients' interests are protected. The following legal services are offered: Real Estate Conveyances, Contract law, Inheritance , Family Law, Tax & Fiscal Advice to Businesses.

Due to the economic situation that Spain has gone through in the last few years, and the pressure that the Government has come under to liberalise employment laws, a number of important changes were made in 2012 and 2013, which make dismissal of employees for economic reasons relatively easier for a business. We have had several cases of employees facing this situation, and we are going to give some keys for them to be prepared:

1.- If you receive a letter of employment termination and the reason given is the poor financial situation of the company, the first thing that you need to know is that you have 20 working days to challenge that in Court. Notice that before Court proceedings become necessary, you must first apply to the CMAC, an administrative body, where employer and employee can reach an agreement without the need to go to Court.

2.- With that termination of contract, the company has to pay you a compensation of 20 days per year worked up to a maximum of one year’s salary and inform you about the dismissal with 15 days notice, and if they fail to do so, paying you an extra compensation of 15 day’s salary.

3.- If a Court determines that the dismissal was unfair, the company will have the option of re-instatement (paying the salary from the dismissal to the date of re-instatement) or a compensation of 45 days per year worked until the 12 of February 2012, and then 33 days per year worked until the day of the dismissal, with a maximum of 24 months of salary (in February 2012 there was an amendment in employment law).

3.- The economic reasons alleged by the company may be three (included in the amendment of law in 2013):

– The company is making losses, i.e. is in the red.
– Persistent decline of incomes (there is no need to be in the red as yet).
– Forecast of losses, a forecast that the company is going to go into the red.

4.- It is very important to understand that there are several reasons and chances to succeed when challenging a dismissal that has been based on ‘economic reasons’, even though the company is in a poor financial situation. We shall discuss those in a separate article.

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    George Salib, London
    Monday, April 23, 2018
    Jose Antonio was very professional and has assisted me in every step of the purchase of my flat in Alicante.

    He also assisted me by advising of the most suitable area according to my needs. His com...mitment and dedication is excellent.

    Jose Antonio was very easy to approach and happy to help in any way he can.

    I will definitely recommend him to my family and friends.
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    I am so blessed I got Rosa to help me I co...uldn't have gotten a better lawyer she's the best.

    Thank you Rosa from the bottom of my heart you are a wonderful person, I am so grateful to you.
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    Friday, April 20, 2018
    Francisco was professional and efficient. Very good value for money.
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    Friday, April 20, 2018
    I can't compliment my solicitor enough.

    From our initial meeting right through to my ultimate divorce (with no unpleasant surprises the entire duration of the entire process), he immediately respo...nded to my many enquiries, always had mine and my daughter's best interests at the forefront of any considerations and was well worth every penny of his extremely reasonable fee.

    Excellent value for money, totally approachable and very professional and understanding. I highly recommend him and will continue to retain his services for other matters in the future.
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    Very satisfied with the service provided. Miguel was approachable and prompt in replying.
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    Vicky S, UK
    Tuesday, April 17, 2018
    Alvaro answered my emails and all my questions efficiently and helped me were I did not understand through the whole process of moving the tenant and selling the property and arranging and introducing... an estate agent.

    He has exceeded my expectations after being let down by previous lawyers in Spain when its been a very traumatic time for me.
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    Friday, April 13, 2018
    We had excellent service from Esther at Advocate Abroad when buying a property in Las Palmas, Gran Canaria.

    Esther speaks both Spanish and English, and is very friendly, professional and genuine. ...She took care of the whole purchasing process and explained all the steps for us, including giving advice on Spanish bank account, NIE numbers etc.

    We are very pleased with all the help we have received and can highly recommend Esther. Thank you so much!
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    Alvaro gives me confidence that he understands the issue and gives me practical solutions. He works rapidly and efficiently. I would strongly recommend his services.
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    Wednesday, March 28, 2018
    Rosa was excellent. Very efficient and professional.

    Responsive and always available. Extremely helpful - we did not understand the process and she guided us through.

    We would not hesitate to ...recommend her.
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    Phil Loughton, Las Lagunas de Mijas
    Tuesday, March 20, 2018
    Alvaro was extremely helpful and the simple process I needed managed was dealt with quickly and efficiently. I would certainly recommend him to friends.
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    Alvaro was very professional, helpful and friendly. Understood things quickly. Explained things well in English. Very easy to contact at any time.
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    Thursday, March 15, 2018
    Miguel provided a great service and fully explained to me about the procedures with tax & business registration. My emails and questions where always answered straight away with an immediate response ...or solution.

    Very helpful and very friendly I would definitely recommend to anyone considering using Advocate Abroad
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    Friday, March 09, 2018
    Rosa was exceptional at helping me setting up my business abroad.

    This was a big move for me and Rosa fully explained everything to me in detail so I had a full and clear understanding of the lega...l side of things as well as always promptly responding to any emails or questions I had.

    I couldn’t of asked for a better lawyer and I would 100% recommend Rosa to anyone who is deciding to move abroad.

    Great service could not be happier.
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    Friday, March 09, 2018
    Oliver was very professional. He explained things very clearly and honestly at all times and in the end we got the best result possible in my particular case.

    Many thanks to him for his high level ...of service.
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    Wednesday, March 07, 2018
    For being in another country and all our back and forth communicating over emails .. I thought Rosa did a brilliant job. Thankfully she was able to help where no one else was willing ..
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    First class service. Rosa's professionalism, advice and patience were all exemplary! Keep up the good work. Will certainly recommend the service to friends!
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    Martina, Plymouth
    Monday, March 05, 2018
    Erardo was fantastic and helped immensely during a very difficult situation.

    He consulted with my lawyer in the UK and explained to her what needed done. Without him the situation would not have be...en resolved. He was very understanding and I would have no hesitation whatsoever in recommending him. Outstanding.
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    M Pearce, Marbella
    Monday, March 05, 2018
    Miguel was extremely helpful, he couldn't have done more:

    Always kept us updated on the progress of our purchase
    Always responded to emails in a professional and timely manner
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    So much better to deal with than UK property lawyers!

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    Wednesday, February 28, 2018
    The service I received from nada was very helpful.

    The tasks were completed to the highest standard and would definitely use her services again in the future. All correspondence was received in a ...very timely manner. Highly recommended.
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    Holly, Lanzarote
    Friday, February 23, 2018
    The divorce process could have been explained more clearly and accurately so that a more realistic time for completion can be attained.
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    Thursday, February 22, 2018
    Esther was very friendly and approachable. She was professional and answered any questions I asked. We would definitely use her again in the future.
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    Tamara Malcolm, Mallorca
    Tuesday, February 20, 2018
    Rosa was and is extremely knowledgeable and helpful. Her advice was excellent and i will definitely be using her expertise again in the future.
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    Tuesday, February 20, 2018
    Very Satisfied with Miguel's work. He was very helpful and we would definitely use his services again in the future.
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    Gavin Jones, UK
    Monday, February 19, 2018
    It was a real pleasure to have Miguel working on my behalf to file my non-resident taxes. He was extremely helpful, gave reassuring advice and I had a high level of confidence in the transactions.

    ...Miguel is now acting as my fiscal representative in Spain and I plan to continue to use his firm's services for all my tax requirements.
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    Sunday, February 18, 2018
    Very friendly and knowledgeable and professional.

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    Andrew Bullen, UK
    Friday, February 16, 2018
    Rosa was very professional at all times when dealing with me. Her English was second to none and she always kept me informed of progress via email promptly.

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    Thursday, February 15, 2018
    Anna was very knowledgeable and had prior experience dealing with English clients. She spent a lot of time explaining information and I was never rushed.

    I have continued to use Anna since my firs...t meeting as I trust her judgement and know that she will look after my best interests.
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    Ali Hashemi, Alicante
    Wednesday, February 14, 2018
    Rafael was extremely helpful, accommodating and understanding. He couldn't have done more.

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