Employment termination in Spain

12 diciembre 2016

  • España
  • Derecho Laboral

En base a nuestra experiencia en años asesorando y representando compañías en la distribución comercial (en la jurisdicción española pero con fabricantes o distribuidores extranjeros), los siguientes son los seis elementos esenciales para que fabricantes (proveedores) y minoristas (distribuidores) puedan establecer buenas bases en una relación de distribución.

Estas ideas son relevantes cuando las empresas tienen la intención de iniciar su relación comercial, pero no deben descuidarse y verificarse incluso cuando ya existan esas relaciones.

La firma del contrato

Aunque podría parecer obvio, la firma de un acuerdo de distribución es menos común de lo que parece. A menudo ocurre que a lo largo de la relación extendida, las estructuras corporativas cambian y lo que una vez se firmó con una sociedad, no se ha renovado, adaptado, modificado o reemplazado cuando la situación se ha transformado. Es muy conveniente haber documentado bien la relación en cada momento de su existencia y estar seguro de que lo que se ha previsto legalmente también se pueda cumplir en la relación comercial cotidiana. Es aconsejable que este trabajo previo sea llevado a cabo por especialistas legales coordinados estrechamente con el departamento comercial de la compañía. Las cláusulas perfectamente redactadas desde un punto de vista legal serán inútiles si son superadas o no cumplidas en el día a día. Y, por supuesto, ningún contrato se firma como una «mera formalidad» para luego modificarlo mediante acuerdos o prácticas verbales que lo dejen sin contenido.

La elección correcta del contrato

Si la firma del contrato de distribución es importante, la elección del tipo correcto es esencial. Muchos de los conflictos que ocurren, especialmente en las relaciones a largo plazo, comienzan con la interpretación del tipo de relación que se ha firmado. Incluso con un texto escrito (y con un título expreso), la intención de las partes sigue sin estar clara (y por lo tanto, el acuerdo). ¿Es el «distribuidor» realmente así? ¿Compra y revende o solo existen relaciones de suministro esporádicas? ¿Existe solo una actividad representativa (es decir, el distribuidor es en realidad un «agente»)? ¿Hay una relación mixta (a veces representa, a veces compra y revende)? La lista podría continuar indefinidamente. Incluso en muchas de las relaciones que existen actualmente, estoy seguro de que la interpretación dada por el Proveedor y el Distribuidor podría ser diferente.

Supervisar las relaciones legales y comerciales

Si es bastante frecuente no tener un contrato escrito claro, sucede en casi todas las relaciones de distribución que una vez que se ha firmado el acuerdo, la actividad comercial diaria modifica lo que se ha acordado. ¿Por qué las relaciones comerciales parecen descuidar lo que se ha escrito en un acuerdo? Son bastante frecuentes los contratos en los que se incluyen ciertas obligaciones para los distribuidores (informar sobre el mercado, clientes, compras mínimas), pero que en la práctica no se respetan (parece complicado, existe una buena relación entre las partes, nadie recuerda lo que se había firmado por personas que ya no trabajan en la empresa…). Sin embargo, también es bastante frecuente intentar utilizar esas obligaciones más adelante cuando comienzan los problemas en la relación. En ese momento, las partes intentan esconderse detrás de esos incumplimientos para resolver los contratos, aunque estas prácticas hubieran sido, en cierto modo, aceptadas. Por supuesto, ningún acuerdo puede durar para siempre y, por esa razón, es altamente recomendable una supervisión global y periódico entre el asesor legal (preferentemente uno independiente con el apoyo de los directivos internos) y el departamento comercial para tener en cuenta las nuevas prácticas y tener su reflejo en los documentos contractuales.

Evidencias sobre los clientes

En los contratos de distribución, las evidencias sobre los clientes serán esenciales en caso de resolución. Las partes (principalmente el proveedor) están bastante interesadas en probar quién (proveedor o distribuidor) adquirió los clientes. ¿Son resultado de la actividad del distribuidor o se obtienen como consecuencia de la reputación de la marca? Reunir las pruebas sobre los clientes podría simplificar o incluso evitar futuros conflictos. La importancia de la clientela y su posible actividad futura será un elemento clave para definir la compensación que pueda pretender el distribuidor.

Evidencias sobre compras y ventas

Otro elemento esencial y, a menudo, olvidado es la justificación de las compras al proveedor y las ventas posteriores de los distribuidores a los clientes. En cualquier acuerdo de distribución, los distribuidores adquieren los productos y los revenden a los clientes finales. Una compensación futura al distribuidor considerará la diferencia entre los precios de compra y los precios de reventa (el margen). Por lo tanto, es aconsejable poder establecer la prueba correspondiente sobre dicha información a fin de preparar mejor una posible reclamación.

Daños en caso de resolución de los contratos

Del mismo modo, sería conveniente justificar qué daños se han sufrido como resultado de la resolución de un contrato: ¿ha realizado el distribuidor inversiones por indicación del proveedor que aún no se han amortizado? ¿El distribuidor ha contratado nuevos empleados para una línea de negocio que debe ser descartada debido a la resolución del contrato? ¿El distribuidor ha alquilado nuevas instalaciones firmando contratos a largo plazo debido a las expectativas del acuerdo? Tenga en cuenta que el Distribuidor es un comerciante independiente y, como tal, asume los riesgos de su actividad. Pero en la medida en que actúe en una red de distribución, estará sujeto a las instrucciones, sugerencias y expectativas creadas por el proveedor. Estas pueden ser relevantes para determinar posteriormente los daños causados ​​por la resolución del contrato.

A partir de mayo de 2.018 entrará en vigor el Reglamento de la UE 2016/679, General de Protección de Datos, el cual traerá consigo importantes cambios. Si bien muchos de estos cambios ya pueden ser incorporados por las empresas, hay otros para los que habrá que atender a lo que al respecto de los mismos establezca la Agencia Española de Protección de Datos, que irá emitiendo guías y pautas que orienten a la empresa en el proceso de adaptación.

En este sentido y a efectos de facilitar que las empresas y organizaciones se adapten a la nueva normativa de la UE, a continuación se reproducen una serie de indicaciones que permitirán a las distintas empresas y entidades cumplir con el Reglamento de Protección de Datos que entrará en vigor el próximo año:

  • Las cláusulas de modificación de información relativas a la obtención de datos y los avisos legales se deberán modificar de cara a este nuevo Reglamento. En este sentido, habrá que incorporar a las mismas la base jurídica que legitima el tratamiento de los datos, la identificación del Delegado de Protección de Datos cuando sea pertinente, los destinatarios de los datos, los tiempos de conservación de los mismos y la posibilidad que tiene el usuario de presentar una reclamación ante la Agencia Española de Protección de Datos.
  • Los contratos que se redacten en el ámbito de protección de datos deberán tener un contenido más amplio que el actual. Así, con la nueva legislación, siempre que se suscriba un contrato con un tercero que implique el acceso a datos por parte de terceros el contenido del mismo deberá ser más exhaustivo de conformidad con lo establecido por la Agencia Española de Protección de Datos.
  • La figura del delegado de protección de datos adquiere especial relevancia bajo el nuevo Reglamento. Si bien es cierto que no se exigirá su designación para todos los supuestos, sí que será bueno y muy positivo que algunas organizaciones designen a una persona cuya labor esencial sea la de coordinar todo lo relativo a la protección de datos de la entidad. El Delegado de Protección de Datos, que puede ser interno, externo o mixto, deberá tener conocimientos jurídicos, técnicos, de gestión de datos y de comunicación. Su labor consistirá en informar al órgano jerárquico de la entidad acerca del cumplimiento normativo y de los riesgos existentes. Ahora bien, a pesar de la importancia de esta figura, el nuevo reglamento le exime de toda responsabilidad, ya que a la hora de establecer posibles sanciones en materia de protección de datos el máximo responsable continúa siendo el encargado del tratamiento de los datos. Eso sí, no olvidemos que en caso de negligencia el responsable del tratamiento de los datos podrá ejercitar las acciones civiles, laborales o penales que correspondan.
  • Otra de las novedades que trae consigo el nuevo Reglamento de la UE es la exigencia de que en determinados supuestos se notifiquen las brechas de seguridad a la Agencia Española de Protección de Datos. Para cumplir con esta novedad, habrá que establecer un procedimiento tanto para detectar como para notificar las brechas de seguridad.
  • El nuevo Reglamento establece una serie de reglas con las que se debe cumplir para garantizar la privacidad de todos los terceros cuyos datos sean tratados por una organización o entidad. Para garantizar esta privacidad, habrá que valorar si el tratamiento de los datos puede suponer un riesgo para el tercero en cuestión.

Tanto el propio Reglamento como la Agencia Española de Protección de Datos facilitarán una serie de pautas y coordenadas que permitirán comprobar si efectivamente se está cumpliendo con la nueva normativa y en su caso detectar aquéllos ámbitos que se deben reforzar.

En definitiva, aunque aún hay tiempo de sobra para adaptarse a esta nueva normativa, conviene tomar conciencia de las importantes modificaciones que conllevará su implantación para ir, progresivamente, incorporando los cambios.

The change in ownership of a company, of a working place or of an autonomous production unit will not extinguish by itself the employment relationship, and the new employer will be subrogated in the labour rights and obligations and in the Social Security obligations from the previous employer.

Company Succession shall be considered to exist when the transmission affect to the economic entity which maintains his identity, understood as an organized grouping of resources which has the objective of pursuing an economic activity, whether or not that activity is central or ancillary.

The transferor and the transferee shall be jointly and severally liable during three years for the labour obligations born beforehand the transmission and which had not been satisfied.

The transferor and the transferee have to report to the legal representatives of the affected employees by the change in the ownership about the following:

  • Expected time of the transmission.
  • Reasons for the transmission.
  • Legal, economic and social consequences of the transmission to the employees.
  • Measures envisaged in relation to the employees.

If there are no legal representatives of the employees the transferor and the transferee shall provide that information directly to the affected employees.

Occupational risk prevention

The law 31/1995 of Prevention of risks at the workplace has the objective of promote the security and the health of the employees’ through the application of measures and the development of the necessary activities to the prevention of risks derived from work.

For that purpose, the Law establishes the general principles concerning the prevention of professional risks for the protection of the life and health.

Under Spanish law a labour contract may be suspended by the following causes:

  • Mutual agreement of the Parties.
  • The legitimate causes consigned in the contract.
  • Temporary incapacity of the employee.
  • Maternity, paternity, risk during pregnancy, risk during breastfeeding, and adoption or family placement.
  • Military service.
  • Holding a representative public charge.
  • Deprivation of the liberty of the employee, as long as a condemnatory sentence does not exists.
  • Suspension from duties without pay for disciplinary reasons.
  • Temporary force majeure.
  • For economic, technical, organizational or production causes.
  • Forced leave of absence.
  • For exercising the right to strike.
  • Legal closing of the company.
  • For decision of the employee as a consequence of gender-based violence.

The suspension of the contract exonerates the reciprocal obligations of working and remunerating the work.

Leaves

The leave can be voluntary or forced. The forced leave will give the right to return to the same workplace and to the computation of the seniority, this leave will be given cause by the designation or the election for a public charge which makes impossible to assist to the work. The readmission has to be applied on the following month since the cessation in the public charge.

The employee with seniority in the company of one year has the right to ask and have the opportunity of having the voluntary leave for a period of time between four months and five years. This right is only possible if four years since the last leave have passed.

The employees will have the right for a leave period for no more than three years to attend the care of every son.

The employee in leave will keep only a preferential right to re-entry in a vacant in the same or similar category in relation with his position.

Agency agreements

Agency Agreements are regulated by the Agency Agreements Law 12/1992 (which has transposed Directive 86/653/EEC into Spanish law).

The main characteristic of the agency agreement is that through this an individual or a legal entity (the Agent) agrees with the Principal on a continuous or regular basis and against payment of a consideration to be agreed, to promote commercial acts or transactions for the account of such Principal not assuming the risk and hazard of such transactions, unless otherwise agreed.

Commercial relationship: Agents are independent intermediaries who do not act in their own name and behalf, but rather for and on behalf of one or more Principals.

There is no labour but commercial relationship between the Principal and the Agent.

It is presumed that the agency relationship is as a matter of fact. On the contrary, there is a labour relationship when the agent in not entitled to organize by his own his business activity nor to fix its own timetable.

Agents Obligations: Agents must, on his own or through his employees, negotiate and, if required by contract, conclude on behalf of the Principal, the business and transactions he is instructed to handle. Agents are subject to a number or obligations, including the following:

  • An agent cannot outsource his activities unless expressly authorized to do so.
  • An agent is authorized to negotiate agreements or transactions included in the agency agreements, but can only conclude them on behalf of its principal when expressly authorized to do so.
  • An agent may act on behalf of several principals, unless the related goods or services are similar or identical, in which case express consent is required.

Main obligations of the Principal are:

  • To act loyally and in good faith in its relations with the agent.
  • To provide the agent with all the documentation and the information which he may need to develop his activity.
  • To pay the agreed consideration.
  • To accept or reject transactions proposed by the agent.

The agency agreement must always be remunerated/paid. The consideration may consist of a fixed amount, a commission or a combination of both.

Indemnity: the agent is entitled to:

  1. A damages and prejudices indemnity if the contract is terminated by the Principal without cause (not to apply when the termination takes place at the end of the agreed Term).
  2. A compensation for clientele/goodwill if the contract is terminated without cause or terminated through expiration of the agreed term provided the agent has contributed with new clients to the Principal business or increased the transactions with the Principal client portfolio and provided that the Principal can benefit in the future of such activity from the agent. Such compensation cannot exceed the average of the payments/commissions received by the agent throughout the last five years or throughout the contract effectiveness if the duration has been below five years.

Non Competition:  non-competition provisions (i.e., provisions restricting or limiting the activities that can be carried out by the agent once the agency agreement has been terminated) have a maximum duration of two years from the termination of the agency agreement and must be: agreed in writing, limited to the geographical area where the agent has been trading and related to goods or services object of the agency agreement.

 

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Distribution / Concession agreements

There is not a specific regulation for distribution agreements; therefore the Civil Code general contract regulation applies. Through this type of contract the Distributor undertakes toward the Principal – on a continuous or regular basis and against payment of a consideration to be agreed – to promote commercial acts or transactions for the account of such Principal, but assuming the risk and hazard of such transactions.

In practice, distribution agreements are often confused with agency agreements. Nevertheless, they are different and have distinct regulations and characteristics.

  1. Under a distribution agreement, the distributor undertakes to purchase goods belonging to the other party for resale. While under the agency agreement the agent is paid a commission but not purchases and resales.
  2. Under the distribution agreement the Distributor assumes the entire risk of the transaction while under the agency agreement the risk remains with the Principal.

Commercial relationship: under the distribution agreement the link is completely commercial; the risk of a labour relationship being declared is much lower than under the agency agreement due to the fact of the Distributor higher independency and autonomy.

The distribution agreement may be granted under an exclusive or non-exclusive basis. The exclusive may work on both sides: the distributor could be contractually liable to only work with the principal (or not) and the Principal could be contractually bound to only work with the distributor on a given territory.

Parties Obligations: while the Agency Agreement is governed through the Agency Agreements Law (which includes mandatory rules), Distribution Agreements are subject to the Civil Code and therefore the “freedom principle” applies in order to set forth the parties obligations regime.

The Distributor is not paid by the Principal. He makes his benefit through the difference between purchase and sale price.

Indemnity: although the clientele/goodwill indemnity only applies to the agency agreements, the Supreme Court has in various sentences decided that the Distributor could have the right to be paid such an indemnity provided similar provisions as those stated at the Agency Agreements law (see above) where met on an analogy basis.

Non Competition:  non-competition provisions (i.e., provisions restricting or limiting the activities that can be carried out by the distributor once the distributor agreement has been terminated) are valid provided that they are expressly agreed through the agreement and its reasonability can be defended and sustained (in terms of territory, term and consideration).

Commission agency agreements

Through this type of contract, the commission agent undertakes to perform or to participate in a commercial act or agreement on behalf of the Principal.

Commission agents may act:

  • In their own name, acquiring rights against the contracting third parties and vice versa or
  • On behalf of their principal, who acquires rights against third parties and vice versa

Obligations of commission agents:

  1. To protect interests of the Principal as if they were their own and to perform their engagement personally. Commission agents may delegate their duties if authorized to do so and may use employees at their own liability.
  2. To account for amount that they have received as commission, to reimburse any excess amount and to return any unsold merchandise.
  3. Commission agents are barred from buying for their own account or for the account of others, without the consent of their principal, the goods that they have been instructed to buy.

Commission: The principal undertakes to pay a commission to the commission agent, usually linked and only accrued if the Transaction is closed.

Differences and similarities between agency agreements and commission agency agreements.

  • Main similarity: In both cases, and individual or legal entity undertakes to pay another compensation for arranging a business opportunity for the former to conclude a legal transaction with a third party, or for acting as the former’s intermediary in concluding the transaction.
  • Main difference: Agency agreements involve an engagement on a continuous or regular basis, whereas commission agency agreements involve occasional engagements.

Franchise Agreements

Franchise Agreements are governed through (i) the Law 7/1996, of January 15, regulations retail trade, regarding the basic conditions for the franchise activity and creating the Register of Franchisors; (ii) Royal Decree 201/2010, of February 26, regulating the exercise of the commercial activity under a franchise arrangement and the communication of information to the Register if Franchisors; and (iii) Royal Decree 378/2003, which refers to Regulations (EC) No. 2790/1999, of December 22, 1999, relating to the application of Article 81(3) of the Treaty to certain categories of vertical agreements. Through the Franchise Agreement the franchisor grants a right to, and imposes an obligation on, its individual franchisees, for a specific market, to pursue the business or commercial activity (sale of goods, services or technology) previously carried out by the Franchisor with sufficient experience and success, using the knowhow, system, trademarks, IP rights etc. defined by the Franchisor.

The Franchise Agreement entitles and obliges the Franchisee to use the brand name and/or trade or service mark for the goods and/or services, the know-how and the technical and business methods, which must be specific to the business, material and unique, the procedures and other intellectual property rights of the Franchisor, backed by the ongoing provision of commercial and technical assistance under, and during the term of, the relevant franchising agreement between the parties, all of the above regardless of any supervisory powers conferred on the Franchisor by contract.

Formalities: In Spain, prior to start franchising activities, Franchisors must register in a public administrative Register of Franchisors.

Although the very short regulation of the Franchise Agreement leaves ground for the freedom principle, usually the franchisee pays a royalty to the Franchisor (commonly linked to the volume of sales but could also be a fix royalty), and a publicity royalty (so as to contribute to the Principal publicity cost of which the franchisee benefits).

Non Competition: throughout the life of the agreement, non-competition clauses (reciprocally) are common and admissible; after the termination of the contract, the Spanish Court usually admits the validity of the one year non-competition clause but limited to the location where the franchise had been working.

Collective dismissals

Collective dismissal means the extinction of the contract based on economic, technical, organizational or production causes when, in a period of nineteen days, the extinctions affects at least to:

  • Ten employees, in companies with fewer that one hundred employees.
  • The ten per cent of the number of employees in companies with between one hundred and three hundred employees.
  • Thirty employees in companies which employ more than three hundred employees.

The collective dismissal must be preceded by a consultation period of no more than thirty days, or fifteen in case of companies with fewer than fifty employees, with the legal representatives of the employees. The consultation with the legal representatives of the employees must be, at the very least, about the possibilities of avoid or reduce the collective dismissals and attenuate its consequences through the use of accompanying social measures (e.g.: outplacement activities, training activities…).

The communication of the opening of the consultation period will start by means of a document by the employer to the legal representatives of the employees, and one copy which has to be sent to the labour authority. In this document shall be specified the following points:

  • The specification of the causes of the collective dismissal.
  • Number and professional qualification of the affected employees by the dismissal.
  • Number and professional qualification of the employees employed in the last year.
  • Period of time expected for the realization of the dismissals.
  • Criteria used for the designation of the affected employees by the dismissal.
  • Copy of the communication directed to the employees or their representatives.
  • Representatives of the employees who will be part of the negotiating committee.

The communication to the legal representatives of the employees and to the labour authority shall be accompanied with an Explanatory Memorandum about the causes of the collective dismissal and the other aspects indicated in the previous paragraph, and also the financial and accounts documentation and the technical dossier.

During the consultation period, the Parties shall negotiate with good faith, aiming to reach an agreement.

That agreement shall require the approval of the majority of the legal representative of the employees or, where appropriate, the majority of the members of the representative commission of the employees.

The termination of the consultation period can finish with an agreement or without agreement; if it finishes with an agreement a Deed of Agreement has to be drafted, or a Deed of Final Decision in case no agreement can be reached. After the consultation period, the result of the communication period has to be communicated to the labour authority and to the employees individually. In case of objection, this can be individually or collective.

Termination of the contract due to objective causes

The employment contract may be terminated for the following causes:

  • For known or for subsequent ineptitude of the employee after his effective placement in the company.
  • Because a lack of adaptation of the employee to the technical modifications operated in his works placement, if those changes are reasonable. First, the employer shall offer to the employee a guided course to facilitate the adaptation.
  • When any of the causes of the collective dismissal concurs and it affect to less than the thresholds established for the collective dismissals.
  • For non-attendance faults to the work, even if justified but intermittent, which are more than the twenty per cent of the working days in two consecutive months, as long as the total of non-attendance faults in the last twelve months exceed the five per cent of the working days, or the twenty five per cent in four discontinuous months.
  • The absences caused by legal strike, exercise of legal representation activities, accident at work, maternity, risk during pregnancy or breastfeeding shall not be count as non-attendance faults to the work, nor if the absences obey to a medical treatment of cancer or serious illness.

Form and effects of the extinction due to objective causes

The adoption of an extinguishment agreement demands the following requisites:

  • Written communication to the employee explaining the cause.
  • Make available to the employee, at the same time of giving the written document, the compensation of twenty days per worked year, prorating as months the periods of time less than a year and with the maximum of twelve monthly pays.
  • Fifty days prior notice of the termination of the contract, to commence from the moment of the official notification to the employee, until the end of the contract.

During the period of notice, the employee shall have the right of 6 hours per week licence to look for a work.

Against the termination decision the employee is able to appeal in the same way as with a disciplinary dismissal.

If the decision is based in reasons of the types of discrimination forbidden by the Constitution or by the Law, or it is made with violation of the fundamental rights and civil liberties, the termination decision will be null and void.

It will be also null the termination decision in the next situations:

  • Employees when their contracts are under suspension caused by maternity, risk during pregnancy, risk during breastfeeding, adoption or family placement…
  • To the pregnant employees, from the beginning of the pregnancy until the start of the period of suspension.
  • Employees after the return from the situations mentioned in paragraph a) if there has not passed nine month since the date of birth or date of the family placement.

The qualification by the judicial authority as null, fair or unfair dismissal of the same will produce the same effects than in case of disciplinary dismissal with the following modifications:

  • In case of fair dismissal, the employee shall be entitled for a compensation of 20 days per worked year, prorating as months the periods of time less than a year and with the with the maximum of twelve monthly pays.
  • In case of unfair dismissal, if the employer proceeds to readmit the employee, the employee has to reintegrate the perceived compensation and corresponding procedural salary. In case of substitution of the readmitting for financial compensation, the amount of that compensation will be deduced from this compensation.

Disciplinary dismissal

The contract can be terminated by decision of the employer, through a dismissal based on serious and negligent breach of duty by the employee.

Shall be regarded as contractual breaches:

  • Repeated an unjustified absenteeism.
  • The indiscipline or disobedience at work.
  • Verbal or physical offences to the employer, or other employees of the company, or relatives who live with them.
  • The breach of the contractual good faith, as well as the breach of trust in the course of the work.
  • The voluntary and continuous decline on working output.
  • Habitual drug or alcohol abuse which adversely affects to the work performance.
  • The harassment based on racial or ethnic origin, religion or convictions, disability, age or sexual orientation or sexual harassment.

Form and effects of the extinction due to disciplinary effects

The dismissal must be notified in writing, with an explanation of the causes and the date when it takes effect.

If the employee is a legal representative of the employees or a trade union representative will proceed to open a contradictory dossier, in this will be heard, besides the interested employee, the other members of the representation.

If the employee is a labour union member and the employee knows it, has to give prior hearing to the union representatives.

If the dismissal is done not respecting these requirements, the employer can make a new dismissal with all of the necessary requirements omitted in the previous. This new dismissal, will only be effective since its date of execution, and can only be done within the term of twenty days since the first dismissal.

The dismissal will be qualified as fair, unfair or null.

The dismissal shall be fair when the breach is accepted by the employer. It will be unfair in the opposite case or if its form is not adjusted to the Law.

It will be null in case the dismissal has been done by causes of discrimination prohibited in the Constitution or in the Law, or when is done with a violation of the fundamental rights or the public liberties of the employee.

It will be also null and void the dismissal in the following causes:

  • The employees who have their contracts under suspension caused by maternity, risk during pregnancy, risk during breastfeeding, adoption or family placement…
  • To the pregnant employees, from the beginning of the pregnancy until the start of the period of suspension.
  • Employees after the return from the situations mentioned in paragraph a) if there has not passed nine month since the date of birth or date of the family placement.

The previous specifications will be also null, except if the dismissal is qualified as fair by reasons which are not related with the pregnancy or the exercise of the rights to leaves or other licenses pointed.

The effect of the null dismissal is the automatic reinstatement of the employee, with the payment of the salaries they did not receive since the date of dismissal to the declaration of null dismissal.

The fair dismissal may validate the extinction of the work contract, without the right of  compensation and nor procedural salaries.

Unfair dismissal

If the dismissal is qualified as unfair, the employer, within five days since the notification of the sentence, may elect between the reinstatement of the employee or to pay an indemnity  equal  to thirty-three days of salary per worked year, prorating as months the periods of time less than a year and with the maximum of twenty-four monthly pays.

If the employer chooses the reinstatement, the employee has the right to obtain the procedural salaries.

If the employer does not choose between the reinstatement and the compensation, it is understood that he choose the first.

If the dismissed employee is a legal representative of the employees or a trade union representative, the option will always correspond to him. If he does not choose between reinstatement and compensation, it is understood that he choose the reinstatement, and he will have right to receive the procedural salaries.

Legal representation of the employees

The employees have the right to participate in the Company through the representative bodies. There are two different representative bodies, which are the Personnel Delegates and the Works Council.

Personnel Delegates

The representation of the employees in a company or in a workplace which has less than 50 and more than 10 employees correspond to the Delegates. The employees shall elect through free, personnel, secret and direct suffrage the personnel delegates depending on the number of employees, 1 delegate if are 30 or less employees, and two personnel delegates if the company has more than 31, till 50 employees.

The personnel delegates will exercise together before the employer the representation of the employees, and the will have the same conditions established for the works council.

Works Council

The works council is the representative and collegiate body of the employees in the company or workplace, its function is to defend the interests of the employees, in every workplace where the census is more than 50 employees.

The company which has in the same community two or more workplaces or in the bordering communities and their census are less than 50 individually but more than 50 employees in the whole workplaces will have a works council for all of the centers. And if there are one with more than 50 employees and more with less, the first will have one works council and in the others will constitute other.

Information and consultation rights

The works council will have the right of being informed and consulted by the employer about those questions that can affect to the employees, and also about the situation of the company and the evolution of the employment in the same.

The works council has the right of being informed quarterly:

  • About the general evolution of the economic area of the company.
  • About the economic situation of the company.
  • About the forecast of the employer to celebrate new contracts.
  • About the statistics regarding the index of absenteeism and the causes, the accidents at work, occupational illnesses and its consequences.

The works council will also have the right of receive information, at least annually, related with the implementation in the company the right of equal treatment and opportunities among men and women.

The works council will have the right to obtain the following documents:

  • The balance, the P&L account, the memory and, other relevant documents.
  • The model of the contracts which are used in the company and the documents related with the dismissals.
  • The severe sanctions targeted.

The works council will have the right of being informed about the situation and structure of the employments in the company or work place, and about the evolution of the same.

The number of the members in the works council will be depending on the number of employees in the company, and will be:

  • From 50 to 100 employees, five.
  • From 101 to 250, nine.
  • From 251 to 500, thirteen
  • From 501 to 750, seventeen.
  • From 751 to 100, twenty-one.
  • More than 1000, two per each thousand, with the maximum of seventy-five.

The works council will choose between their members one president and a secretary, and the will elaborate their own procedural regulation, which cannot contravene the Law.

Substantial changes in working conditions

The business management may agree substantial modifications in the working conditions if there exists real economic, technique, organizational, or production reasons. They shall be consider related with the competitiveness productivity or technique organization or work in the company.

The modification in the next causes will be considered as substantial change in working conditions:

  • Working day.
  • Timetable and working time arrangements.
  • Scheduled working hours.
  • Compensation package and the amount of salary.
  • Functions, if exceed the limits from article 93 of the Works Statute.

The Substantial changes in the working conditions could affect to the recognized conditions to the employees in the work contract, agreements or collective agreements.

It is consider as collective character the modification that, in a period of 90 days, affect at least to:

  • Ten employees, on companies with fewer 100 employees.
  • The ten percent of the number of employees in the company in the companies which have more than one hundred and less than three hundred.
  • Thirteen employees, in the companies of more than three hundred employees,

The decision to change the working conditions individually shall be notified by the employer to the affected employee and his/her legal representatives no later than fifteen days before effective date.

If the Substantial change in working conditions has a collective character, this decision has to be preceded by a consultation period of no more than fifteen days.

The temporary employment agencies are the companies where their main function is to provide to another company (User Company), temporarily, employees contracted through it. The hiring of employees to release temporarily to another company may occur only through a temporary employment agency.

The contract may be temporally or undefined, and the maximum will be six months if the contract has been concluded for circumstances of the market, or accumulation of work. And if it is to cover a workplace temporarily, the maximum will be for three months.

Manpower supply contracts

Manpower supply contract is the contract which is celebrated between the temporary employment agencies and the User Company being his subject the assignment of an employee, and the employee through the assignment will be subject to the instruction and discipline of the User Company.

It will only be possible to execute a contract between a temporary employment agency and a User Company in the same circumstances and under the same conditions and requirements that the article 15 of the Employees Statute.

Additionally, it will only be possible to conclude a contract between a temporary employment agency and the User Company, in the same terms that in the contracts of apprenticeship contract and training for work according to the article 11 of the Employees Statute.

If after the available deadline the employee continues working in the User Company, the employee will be considered an employee of the User Company under an undefined term contract.

The working time will be the scheduled by the User Company. The clause that bans the possibility for the employee to be hired by the company after this kind of contract shall be void.

The companies may not conclude these contracts in the following cases:

  • To substitute employees in strike.
  • To carry on dangerous works.
  • Where in the previous twelve months the company has cancel the work places, which are looking to cover, under an unfair dismissal or by any other the causes of the article 20, 21 and 52 c, of the Employees Statute.
  • To assign employees to other temporary employment agencies.

The User Company is responsible of the protection in safety and hygiene matter in the work.

The User Company will respond collaterally of the wage guarantees and of Social Security contracted with the employee during the effect of the manpower supply contract.

If the contract is for a defined period, the employee after the contract will have the right of a compensation of 12 days per worked year.

Jose Luis Herrero

Áreas de práctica

  • Agencia
  • Inmigración
  • Propiedad Intelectual
  • Derecho Laboral
  • Delitos financieros
Contáctanos Jose

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    Spain – Employees legal representation and changes in working conditions

    24 octubre 2016

    • España
    • Derecho Laboral

    En base a nuestra experiencia en años asesorando y representando compañías en la distribución comercial (en la jurisdicción española pero con fabricantes o distribuidores extranjeros), los siguientes son los seis elementos esenciales para que fabricantes (proveedores) y minoristas (distribuidores) puedan establecer buenas bases en una relación de distribución.

    Estas ideas son relevantes cuando las empresas tienen la intención de iniciar su relación comercial, pero no deben descuidarse y verificarse incluso cuando ya existan esas relaciones.

    La firma del contrato

    Aunque podría parecer obvio, la firma de un acuerdo de distribución es menos común de lo que parece. A menudo ocurre que a lo largo de la relación extendida, las estructuras corporativas cambian y lo que una vez se firmó con una sociedad, no se ha renovado, adaptado, modificado o reemplazado cuando la situación se ha transformado. Es muy conveniente haber documentado bien la relación en cada momento de su existencia y estar seguro de que lo que se ha previsto legalmente también se pueda cumplir en la relación comercial cotidiana. Es aconsejable que este trabajo previo sea llevado a cabo por especialistas legales coordinados estrechamente con el departamento comercial de la compañía. Las cláusulas perfectamente redactadas desde un punto de vista legal serán inútiles si son superadas o no cumplidas en el día a día. Y, por supuesto, ningún contrato se firma como una «mera formalidad» para luego modificarlo mediante acuerdos o prácticas verbales que lo dejen sin contenido.

    La elección correcta del contrato

    Si la firma del contrato de distribución es importante, la elección del tipo correcto es esencial. Muchos de los conflictos que ocurren, especialmente en las relaciones a largo plazo, comienzan con la interpretación del tipo de relación que se ha firmado. Incluso con un texto escrito (y con un título expreso), la intención de las partes sigue sin estar clara (y por lo tanto, el acuerdo). ¿Es el «distribuidor» realmente así? ¿Compra y revende o solo existen relaciones de suministro esporádicas? ¿Existe solo una actividad representativa (es decir, el distribuidor es en realidad un «agente»)? ¿Hay una relación mixta (a veces representa, a veces compra y revende)? La lista podría continuar indefinidamente. Incluso en muchas de las relaciones que existen actualmente, estoy seguro de que la interpretación dada por el Proveedor y el Distribuidor podría ser diferente.

    Supervisar las relaciones legales y comerciales

    Si es bastante frecuente no tener un contrato escrito claro, sucede en casi todas las relaciones de distribución que una vez que se ha firmado el acuerdo, la actividad comercial diaria modifica lo que se ha acordado. ¿Por qué las relaciones comerciales parecen descuidar lo que se ha escrito en un acuerdo? Son bastante frecuentes los contratos en los que se incluyen ciertas obligaciones para los distribuidores (informar sobre el mercado, clientes, compras mínimas), pero que en la práctica no se respetan (parece complicado, existe una buena relación entre las partes, nadie recuerda lo que se había firmado por personas que ya no trabajan en la empresa…). Sin embargo, también es bastante frecuente intentar utilizar esas obligaciones más adelante cuando comienzan los problemas en la relación. En ese momento, las partes intentan esconderse detrás de esos incumplimientos para resolver los contratos, aunque estas prácticas hubieran sido, en cierto modo, aceptadas. Por supuesto, ningún acuerdo puede durar para siempre y, por esa razón, es altamente recomendable una supervisión global y periódico entre el asesor legal (preferentemente uno independiente con el apoyo de los directivos internos) y el departamento comercial para tener en cuenta las nuevas prácticas y tener su reflejo en los documentos contractuales.

    Evidencias sobre los clientes

    En los contratos de distribución, las evidencias sobre los clientes serán esenciales en caso de resolución. Las partes (principalmente el proveedor) están bastante interesadas en probar quién (proveedor o distribuidor) adquirió los clientes. ¿Son resultado de la actividad del distribuidor o se obtienen como consecuencia de la reputación de la marca? Reunir las pruebas sobre los clientes podría simplificar o incluso evitar futuros conflictos. La importancia de la clientela y su posible actividad futura será un elemento clave para definir la compensación que pueda pretender el distribuidor.

    Evidencias sobre compras y ventas

    Otro elemento esencial y, a menudo, olvidado es la justificación de las compras al proveedor y las ventas posteriores de los distribuidores a los clientes. En cualquier acuerdo de distribución, los distribuidores adquieren los productos y los revenden a los clientes finales. Una compensación futura al distribuidor considerará la diferencia entre los precios de compra y los precios de reventa (el margen). Por lo tanto, es aconsejable poder establecer la prueba correspondiente sobre dicha información a fin de preparar mejor una posible reclamación.

    Daños en caso de resolución de los contratos

    Del mismo modo, sería conveniente justificar qué daños se han sufrido como resultado de la resolución de un contrato: ¿ha realizado el distribuidor inversiones por indicación del proveedor que aún no se han amortizado? ¿El distribuidor ha contratado nuevos empleados para una línea de negocio que debe ser descartada debido a la resolución del contrato? ¿El distribuidor ha alquilado nuevas instalaciones firmando contratos a largo plazo debido a las expectativas del acuerdo? Tenga en cuenta que el Distribuidor es un comerciante independiente y, como tal, asume los riesgos de su actividad. Pero en la medida en que actúe en una red de distribución, estará sujeto a las instrucciones, sugerencias y expectativas creadas por el proveedor. Estas pueden ser relevantes para determinar posteriormente los daños causados ​​por la resolución del contrato.

    A partir de mayo de 2.018 entrará en vigor el Reglamento de la UE 2016/679, General de Protección de Datos, el cual traerá consigo importantes cambios. Si bien muchos de estos cambios ya pueden ser incorporados por las empresas, hay otros para los que habrá que atender a lo que al respecto de los mismos establezca la Agencia Española de Protección de Datos, que irá emitiendo guías y pautas que orienten a la empresa en el proceso de adaptación.

    En este sentido y a efectos de facilitar que las empresas y organizaciones se adapten a la nueva normativa de la UE, a continuación se reproducen una serie de indicaciones que permitirán a las distintas empresas y entidades cumplir con el Reglamento de Protección de Datos que entrará en vigor el próximo año:

    • Las cláusulas de modificación de información relativas a la obtención de datos y los avisos legales se deberán modificar de cara a este nuevo Reglamento. En este sentido, habrá que incorporar a las mismas la base jurídica que legitima el tratamiento de los datos, la identificación del Delegado de Protección de Datos cuando sea pertinente, los destinatarios de los datos, los tiempos de conservación de los mismos y la posibilidad que tiene el usuario de presentar una reclamación ante la Agencia Española de Protección de Datos.
    • Los contratos que se redacten en el ámbito de protección de datos deberán tener un contenido más amplio que el actual. Así, con la nueva legislación, siempre que se suscriba un contrato con un tercero que implique el acceso a datos por parte de terceros el contenido del mismo deberá ser más exhaustivo de conformidad con lo establecido por la Agencia Española de Protección de Datos.
    • La figura del delegado de protección de datos adquiere especial relevancia bajo el nuevo Reglamento. Si bien es cierto que no se exigirá su designación para todos los supuestos, sí que será bueno y muy positivo que algunas organizaciones designen a una persona cuya labor esencial sea la de coordinar todo lo relativo a la protección de datos de la entidad. El Delegado de Protección de Datos, que puede ser interno, externo o mixto, deberá tener conocimientos jurídicos, técnicos, de gestión de datos y de comunicación. Su labor consistirá en informar al órgano jerárquico de la entidad acerca del cumplimiento normativo y de los riesgos existentes. Ahora bien, a pesar de la importancia de esta figura, el nuevo reglamento le exime de toda responsabilidad, ya que a la hora de establecer posibles sanciones en materia de protección de datos el máximo responsable continúa siendo el encargado del tratamiento de los datos. Eso sí, no olvidemos que en caso de negligencia el responsable del tratamiento de los datos podrá ejercitar las acciones civiles, laborales o penales que correspondan.
    • Otra de las novedades que trae consigo el nuevo Reglamento de la UE es la exigencia de que en determinados supuestos se notifiquen las brechas de seguridad a la Agencia Española de Protección de Datos. Para cumplir con esta novedad, habrá que establecer un procedimiento tanto para detectar como para notificar las brechas de seguridad.
    • El nuevo Reglamento establece una serie de reglas con las que se debe cumplir para garantizar la privacidad de todos los terceros cuyos datos sean tratados por una organización o entidad. Para garantizar esta privacidad, habrá que valorar si el tratamiento de los datos puede suponer un riesgo para el tercero en cuestión.

    Tanto el propio Reglamento como la Agencia Española de Protección de Datos facilitarán una serie de pautas y coordenadas que permitirán comprobar si efectivamente se está cumpliendo con la nueva normativa y en su caso detectar aquéllos ámbitos que se deben reforzar.

    En definitiva, aunque aún hay tiempo de sobra para adaptarse a esta nueva normativa, conviene tomar conciencia de las importantes modificaciones que conllevará su implantación para ir, progresivamente, incorporando los cambios.

    The change in ownership of a company, of a working place or of an autonomous production unit will not extinguish by itself the employment relationship, and the new employer will be subrogated in the labour rights and obligations and in the Social Security obligations from the previous employer.

    Company Succession shall be considered to exist when the transmission affect to the economic entity which maintains his identity, understood as an organized grouping of resources which has the objective of pursuing an economic activity, whether or not that activity is central or ancillary.

    The transferor and the transferee shall be jointly and severally liable during three years for the labour obligations born beforehand the transmission and which had not been satisfied.

    The transferor and the transferee have to report to the legal representatives of the affected employees by the change in the ownership about the following:

    • Expected time of the transmission.
    • Reasons for the transmission.
    • Legal, economic and social consequences of the transmission to the employees.
    • Measures envisaged in relation to the employees.

    If there are no legal representatives of the employees the transferor and the transferee shall provide that information directly to the affected employees.

    Occupational risk prevention

    The law 31/1995 of Prevention of risks at the workplace has the objective of promote the security and the health of the employees’ through the application of measures and the development of the necessary activities to the prevention of risks derived from work.

    For that purpose, the Law establishes the general principles concerning the prevention of professional risks for the protection of the life and health.

    Under Spanish law a labour contract may be suspended by the following causes:

    • Mutual agreement of the Parties.
    • The legitimate causes consigned in the contract.
    • Temporary incapacity of the employee.
    • Maternity, paternity, risk during pregnancy, risk during breastfeeding, and adoption or family placement.
    • Military service.
    • Holding a representative public charge.
    • Deprivation of the liberty of the employee, as long as a condemnatory sentence does not exists.
    • Suspension from duties without pay for disciplinary reasons.
    • Temporary force majeure.
    • For economic, technical, organizational or production causes.
    • Forced leave of absence.
    • For exercising the right to strike.
    • Legal closing of the company.
    • For decision of the employee as a consequence of gender-based violence.

    The suspension of the contract exonerates the reciprocal obligations of working and remunerating the work.

    Leaves

    The leave can be voluntary or forced. The forced leave will give the right to return to the same workplace and to the computation of the seniority, this leave will be given cause by the designation or the election for a public charge which makes impossible to assist to the work. The readmission has to be applied on the following month since the cessation in the public charge.

    The employee with seniority in the company of one year has the right to ask and have the opportunity of having the voluntary leave for a period of time between four months and five years. This right is only possible if four years since the last leave have passed.

    The employees will have the right for a leave period for no more than three years to attend the care of every son.

    The employee in leave will keep only a preferential right to re-entry in a vacant in the same or similar category in relation with his position.

    Agency agreements

    Agency Agreements are regulated by the Agency Agreements Law 12/1992 (which has transposed Directive 86/653/EEC into Spanish law).

    The main characteristic of the agency agreement is that through this an individual or a legal entity (the Agent) agrees with the Principal on a continuous or regular basis and against payment of a consideration to be agreed, to promote commercial acts or transactions for the account of such Principal not assuming the risk and hazard of such transactions, unless otherwise agreed.

    Commercial relationship: Agents are independent intermediaries who do not act in their own name and behalf, but rather for and on behalf of one or more Principals.

    There is no labour but commercial relationship between the Principal and the Agent.

    It is presumed that the agency relationship is as a matter of fact. On the contrary, there is a labour relationship when the agent in not entitled to organize by his own his business activity nor to fix its own timetable.

    Agents Obligations: Agents must, on his own or through his employees, negotiate and, if required by contract, conclude on behalf of the Principal, the business and transactions he is instructed to handle. Agents are subject to a number or obligations, including the following:

    • An agent cannot outsource his activities unless expressly authorized to do so.
    • An agent is authorized to negotiate agreements or transactions included in the agency agreements, but can only conclude them on behalf of its principal when expressly authorized to do so.
    • An agent may act on behalf of several principals, unless the related goods or services are similar or identical, in which case express consent is required.

    Main obligations of the Principal are:

    • To act loyally and in good faith in its relations with the agent.
    • To provide the agent with all the documentation and the information which he may need to develop his activity.
    • To pay the agreed consideration.
    • To accept or reject transactions proposed by the agent.

    The agency agreement must always be remunerated/paid. The consideration may consist of a fixed amount, a commission or a combination of both.

    Indemnity: the agent is entitled to:

    1. A damages and prejudices indemnity if the contract is terminated by the Principal without cause (not to apply when the termination takes place at the end of the agreed Term).
    2. A compensation for clientele/goodwill if the contract is terminated without cause or terminated through expiration of the agreed term provided the agent has contributed with new clients to the Principal business or increased the transactions with the Principal client portfolio and provided that the Principal can benefit in the future of such activity from the agent. Such compensation cannot exceed the average of the payments/commissions received by the agent throughout the last five years or throughout the contract effectiveness if the duration has been below five years.

    Non Competition:  non-competition provisions (i.e., provisions restricting or limiting the activities that can be carried out by the agent once the agency agreement has been terminated) have a maximum duration of two years from the termination of the agency agreement and must be: agreed in writing, limited to the geographical area where the agent has been trading and related to goods or services object of the agency agreement.

     

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    Distribution / Concession agreements

    There is not a specific regulation for distribution agreements; therefore the Civil Code general contract regulation applies. Through this type of contract the Distributor undertakes toward the Principal – on a continuous or regular basis and against payment of a consideration to be agreed – to promote commercial acts or transactions for the account of such Principal, but assuming the risk and hazard of such transactions.

    In practice, distribution agreements are often confused with agency agreements. Nevertheless, they are different and have distinct regulations and characteristics.

    1. Under a distribution agreement, the distributor undertakes to purchase goods belonging to the other party for resale. While under the agency agreement the agent is paid a commission but not purchases and resales.
    2. Under the distribution agreement the Distributor assumes the entire risk of the transaction while under the agency agreement the risk remains with the Principal.

    Commercial relationship: under the distribution agreement the link is completely commercial; the risk of a labour relationship being declared is much lower than under the agency agreement due to the fact of the Distributor higher independency and autonomy.

    The distribution agreement may be granted under an exclusive or non-exclusive basis. The exclusive may work on both sides: the distributor could be contractually liable to only work with the principal (or not) and the Principal could be contractually bound to only work with the distributor on a given territory.

    Parties Obligations: while the Agency Agreement is governed through the Agency Agreements Law (which includes mandatory rules), Distribution Agreements are subject to the Civil Code and therefore the “freedom principle” applies in order to set forth the parties obligations regime.

    The Distributor is not paid by the Principal. He makes his benefit through the difference between purchase and sale price.

    Indemnity: although the clientele/goodwill indemnity only applies to the agency agreements, the Supreme Court has in various sentences decided that the Distributor could have the right to be paid such an indemnity provided similar provisions as those stated at the Agency Agreements law (see above) where met on an analogy basis.

    Non Competition:  non-competition provisions (i.e., provisions restricting or limiting the activities that can be carried out by the distributor once the distributor agreement has been terminated) are valid provided that they are expressly agreed through the agreement and its reasonability can be defended and sustained (in terms of territory, term and consideration).

    Commission agency agreements

    Through this type of contract, the commission agent undertakes to perform or to participate in a commercial act or agreement on behalf of the Principal.

    Commission agents may act:

    • In their own name, acquiring rights against the contracting third parties and vice versa or
    • On behalf of their principal, who acquires rights against third parties and vice versa

    Obligations of commission agents:

    1. To protect interests of the Principal as if they were their own and to perform their engagement personally. Commission agents may delegate their duties if authorized to do so and may use employees at their own liability.
    2. To account for amount that they have received as commission, to reimburse any excess amount and to return any unsold merchandise.
    3. Commission agents are barred from buying for their own account or for the account of others, without the consent of their principal, the goods that they have been instructed to buy.

    Commission: The principal undertakes to pay a commission to the commission agent, usually linked and only accrued if the Transaction is closed.

    Differences and similarities between agency agreements and commission agency agreements.

    • Main similarity: In both cases, and individual or legal entity undertakes to pay another compensation for arranging a business opportunity for the former to conclude a legal transaction with a third party, or for acting as the former’s intermediary in concluding the transaction.
    • Main difference: Agency agreements involve an engagement on a continuous or regular basis, whereas commission agency agreements involve occasional engagements.

    Franchise Agreements

    Franchise Agreements are governed through (i) the Law 7/1996, of January 15, regulations retail trade, regarding the basic conditions for the franchise activity and creating the Register of Franchisors; (ii) Royal Decree 201/2010, of February 26, regulating the exercise of the commercial activity under a franchise arrangement and the communication of information to the Register if Franchisors; and (iii) Royal Decree 378/2003, which refers to Regulations (EC) No. 2790/1999, of December 22, 1999, relating to the application of Article 81(3) of the Treaty to certain categories of vertical agreements. Through the Franchise Agreement the franchisor grants a right to, and imposes an obligation on, its individual franchisees, for a specific market, to pursue the business or commercial activity (sale of goods, services or technology) previously carried out by the Franchisor with sufficient experience and success, using the knowhow, system, trademarks, IP rights etc. defined by the Franchisor.

    The Franchise Agreement entitles and obliges the Franchisee to use the brand name and/or trade or service mark for the goods and/or services, the know-how and the technical and business methods, which must be specific to the business, material and unique, the procedures and other intellectual property rights of the Franchisor, backed by the ongoing provision of commercial and technical assistance under, and during the term of, the relevant franchising agreement between the parties, all of the above regardless of any supervisory powers conferred on the Franchisor by contract.

    Formalities: In Spain, prior to start franchising activities, Franchisors must register in a public administrative Register of Franchisors.

    Although the very short regulation of the Franchise Agreement leaves ground for the freedom principle, usually the franchisee pays a royalty to the Franchisor (commonly linked to the volume of sales but could also be a fix royalty), and a publicity royalty (so as to contribute to the Principal publicity cost of which the franchisee benefits).

    Non Competition: throughout the life of the agreement, non-competition clauses (reciprocally) are common and admissible; after the termination of the contract, the Spanish Court usually admits the validity of the one year non-competition clause but limited to the location where the franchise had been working.

    Collective dismissals

    Collective dismissal means the extinction of the contract based on economic, technical, organizational or production causes when, in a period of nineteen days, the extinctions affects at least to:

    • Ten employees, in companies with fewer that one hundred employees.
    • The ten per cent of the number of employees in companies with between one hundred and three hundred employees.
    • Thirty employees in companies which employ more than three hundred employees.

    The collective dismissal must be preceded by a consultation period of no more than thirty days, or fifteen in case of companies with fewer than fifty employees, with the legal representatives of the employees. The consultation with the legal representatives of the employees must be, at the very least, about the possibilities of avoid or reduce the collective dismissals and attenuate its consequences through the use of accompanying social measures (e.g.: outplacement activities, training activities…).

    The communication of the opening of the consultation period will start by means of a document by the employer to the legal representatives of the employees, and one copy which has to be sent to the labour authority. In this document shall be specified the following points:

    • The specification of the causes of the collective dismissal.
    • Number and professional qualification of the affected employees by the dismissal.
    • Number and professional qualification of the employees employed in the last year.
    • Period of time expected for the realization of the dismissals.
    • Criteria used for the designation of the affected employees by the dismissal.
    • Copy of the communication directed to the employees or their representatives.
    • Representatives of the employees who will be part of the negotiating committee.

    The communication to the legal representatives of the employees and to the labour authority shall be accompanied with an Explanatory Memorandum about the causes of the collective dismissal and the other aspects indicated in the previous paragraph, and also the financial and accounts documentation and the technical dossier.

    During the consultation period, the Parties shall negotiate with good faith, aiming to reach an agreement.

    That agreement shall require the approval of the majority of the legal representative of the employees or, where appropriate, the majority of the members of the representative commission of the employees.

    The termination of the consultation period can finish with an agreement or without agreement; if it finishes with an agreement a Deed of Agreement has to be drafted, or a Deed of Final Decision in case no agreement can be reached. After the consultation period, the result of the communication period has to be communicated to the labour authority and to the employees individually. In case of objection, this can be individually or collective.

    Termination of the contract due to objective causes

    The employment contract may be terminated for the following causes:

    • For known or for subsequent ineptitude of the employee after his effective placement in the company.
    • Because a lack of adaptation of the employee to the technical modifications operated in his works placement, if those changes are reasonable. First, the employer shall offer to the employee a guided course to facilitate the adaptation.
    • When any of the causes of the collective dismissal concurs and it affect to less than the thresholds established for the collective dismissals.
    • For non-attendance faults to the work, even if justified but intermittent, which are more than the twenty per cent of the working days in two consecutive months, as long as the total of non-attendance faults in the last twelve months exceed the five per cent of the working days, or the twenty five per cent in four discontinuous months.
    • The absences caused by legal strike, exercise of legal representation activities, accident at work, maternity, risk during pregnancy or breastfeeding shall not be count as non-attendance faults to the work, nor if the absences obey to a medical treatment of cancer or serious illness.

    Form and effects of the extinction due to objective causes

    The adoption of an extinguishment agreement demands the following requisites:

    • Written communication to the employee explaining the cause.
    • Make available to the employee, at the same time of giving the written document, the compensation of twenty days per worked year, prorating as months the periods of time less than a year and with the maximum of twelve monthly pays.
    • Fifty days prior notice of the termination of the contract, to commence from the moment of the official notification to the employee, until the end of the contract.

    During the period of notice, the employee shall have the right of 6 hours per week licence to look for a work.

    Against the termination decision the employee is able to appeal in the same way as with a disciplinary dismissal.

    If the decision is based in reasons of the types of discrimination forbidden by the Constitution or by the Law, or it is made with violation of the fundamental rights and civil liberties, the termination decision will be null and void.

    It will be also null the termination decision in the next situations:

    • Employees when their contracts are under suspension caused by maternity, risk during pregnancy, risk during breastfeeding, adoption or family placement…
    • To the pregnant employees, from the beginning of the pregnancy until the start of the period of suspension.
    • Employees after the return from the situations mentioned in paragraph a) if there has not passed nine month since the date of birth or date of the family placement.

    The qualification by the judicial authority as null, fair or unfair dismissal of the same will produce the same effects than in case of disciplinary dismissal with the following modifications:

    • In case of fair dismissal, the employee shall be entitled for a compensation of 20 days per worked year, prorating as months the periods of time less than a year and with the with the maximum of twelve monthly pays.
    • In case of unfair dismissal, if the employer proceeds to readmit the employee, the employee has to reintegrate the perceived compensation and corresponding procedural salary. In case of substitution of the readmitting for financial compensation, the amount of that compensation will be deduced from this compensation.

    Disciplinary dismissal

    The contract can be terminated by decision of the employer, through a dismissal based on serious and negligent breach of duty by the employee.

    Shall be regarded as contractual breaches:

    • Repeated an unjustified absenteeism.
    • The indiscipline or disobedience at work.
    • Verbal or physical offences to the employer, or other employees of the company, or relatives who live with them.
    • The breach of the contractual good faith, as well as the breach of trust in the course of the work.
    • The voluntary and continuous decline on working output.
    • Habitual drug or alcohol abuse which adversely affects to the work performance.
    • The harassment based on racial or ethnic origin, religion or convictions, disability, age or sexual orientation or sexual harassment.

    Form and effects of the extinction due to disciplinary effects

    The dismissal must be notified in writing, with an explanation of the causes and the date when it takes effect.

    If the employee is a legal representative of the employees or a trade union representative will proceed to open a contradictory dossier, in this will be heard, besides the interested employee, the other members of the representation.

    If the employee is a labour union member and the employee knows it, has to give prior hearing to the union representatives.

    If the dismissal is done not respecting these requirements, the employer can make a new dismissal with all of the necessary requirements omitted in the previous. This new dismissal, will only be effective since its date of execution, and can only be done within the term of twenty days since the first dismissal.

    The dismissal will be qualified as fair, unfair or null.

    The dismissal shall be fair when the breach is accepted by the employer. It will be unfair in the opposite case or if its form is not adjusted to the Law.

    It will be null in case the dismissal has been done by causes of discrimination prohibited in the Constitution or in the Law, or when is done with a violation of the fundamental rights or the public liberties of the employee.

    It will be also null and void the dismissal in the following causes:

    • The employees who have their contracts under suspension caused by maternity, risk during pregnancy, risk during breastfeeding, adoption or family placement…
    • To the pregnant employees, from the beginning of the pregnancy until the start of the period of suspension.
    • Employees after the return from the situations mentioned in paragraph a) if there has not passed nine month since the date of birth or date of the family placement.

    The previous specifications will be also null, except if the dismissal is qualified as fair by reasons which are not related with the pregnancy or the exercise of the rights to leaves or other licenses pointed.

    The effect of the null dismissal is the automatic reinstatement of the employee, with the payment of the salaries they did not receive since the date of dismissal to the declaration of null dismissal.

    The fair dismissal may validate the extinction of the work contract, without the right of  compensation and nor procedural salaries.

    Unfair dismissal

    If the dismissal is qualified as unfair, the employer, within five days since the notification of the sentence, may elect between the reinstatement of the employee or to pay an indemnity  equal  to thirty-three days of salary per worked year, prorating as months the periods of time less than a year and with the maximum of twenty-four monthly pays.

    If the employer chooses the reinstatement, the employee has the right to obtain the procedural salaries.

    If the employer does not choose between the reinstatement and the compensation, it is understood that he choose the first.

    If the dismissed employee is a legal representative of the employees or a trade union representative, the option will always correspond to him. If he does not choose between reinstatement and compensation, it is understood that he choose the reinstatement, and he will have right to receive the procedural salaries.

    Legal representation of the employees

    The employees have the right to participate in the Company through the representative bodies. There are two different representative bodies, which are the Personnel Delegates and the Works Council.

    Personnel Delegates

    The representation of the employees in a company or in a workplace which has less than 50 and more than 10 employees correspond to the Delegates. The employees shall elect through free, personnel, secret and direct suffrage the personnel delegates depending on the number of employees, 1 delegate if are 30 or less employees, and two personnel delegates if the company has more than 31, till 50 employees.

    The personnel delegates will exercise together before the employer the representation of the employees, and the will have the same conditions established for the works council.

    Works Council

    The works council is the representative and collegiate body of the employees in the company or workplace, its function is to defend the interests of the employees, in every workplace where the census is more than 50 employees.

    The company which has in the same community two or more workplaces or in the bordering communities and their census are less than 50 individually but more than 50 employees in the whole workplaces will have a works council for all of the centers. And if there are one with more than 50 employees and more with less, the first will have one works council and in the others will constitute other.

    Information and consultation rights

    The works council will have the right of being informed and consulted by the employer about those questions that can affect to the employees, and also about the situation of the company and the evolution of the employment in the same.

    The works council has the right of being informed quarterly:

    • About the general evolution of the economic area of the company.
    • About the economic situation of the company.
    • About the forecast of the employer to celebrate new contracts.
    • About the statistics regarding the index of absenteeism and the causes, the accidents at work, occupational illnesses and its consequences.

    The works council will also have the right of receive information, at least annually, related with the implementation in the company the right of equal treatment and opportunities among men and women.

    The works council will have the right to obtain the following documents:

    • The balance, the P&L account, the memory and, other relevant documents.
    • The model of the contracts which are used in the company and the documents related with the dismissals.
    • The severe sanctions targeted.

    The works council will have the right of being informed about the situation and structure of the employments in the company or work place, and about the evolution of the same.

    The number of the members in the works council will be depending on the number of employees in the company, and will be:

    • From 50 to 100 employees, five.
    • From 101 to 250, nine.
    • From 251 to 500, thirteen
    • From 501 to 750, seventeen.
    • From 751 to 100, twenty-one.
    • More than 1000, two per each thousand, with the maximum of seventy-five.

    The works council will choose between their members one president and a secretary, and the will elaborate their own procedural regulation, which cannot contravene the Law.

    Substantial changes in working conditions

    The business management may agree substantial modifications in the working conditions if there exists real economic, technique, organizational, or production reasons. They shall be consider related with the competitiveness productivity or technique organization or work in the company.

    The modification in the next causes will be considered as substantial change in working conditions:

    • Working day.
    • Timetable and working time arrangements.
    • Scheduled working hours.
    • Compensation package and the amount of salary.
    • Functions, if exceed the limits from article 93 of the Works Statute.

    The Substantial changes in the working conditions could affect to the recognized conditions to the employees in the work contract, agreements or collective agreements.

    It is consider as collective character the modification that, in a period of 90 days, affect at least to:

    • Ten employees, on companies with fewer 100 employees.
    • The ten percent of the number of employees in the company in the companies which have more than one hundred and less than three hundred.
    • Thirteen employees, in the companies of more than three hundred employees,

    The decision to change the working conditions individually shall be notified by the employer to the affected employee and his/her legal representatives no later than fifteen days before effective date.

    If the Substantial change in working conditions has a collective character, this decision has to be preceded by a consultation period of no more than fifteen days.

    The temporary employment agencies are the companies where their main function is to provide to another company (User Company), temporarily, employees contracted through it. The hiring of employees to release temporarily to another company may occur only through a temporary employment agency.

    The contract may be temporally or undefined, and the maximum will be six months if the contract has been concluded for circumstances of the market, or accumulation of work. And if it is to cover a workplace temporarily, the maximum will be for three months.

    Manpower supply contracts

    Manpower supply contract is the contract which is celebrated between the temporary employment agencies and the User Company being his subject the assignment of an employee, and the employee through the assignment will be subject to the instruction and discipline of the User Company.

    It will only be possible to execute a contract between a temporary employment agency and a User Company in the same circumstances and under the same conditions and requirements that the article 15 of the Employees Statute.

    Additionally, it will only be possible to conclude a contract between a temporary employment agency and the User Company, in the same terms that in the contracts of apprenticeship contract and training for work according to the article 11 of the Employees Statute.

    If after the available deadline the employee continues working in the User Company, the employee will be considered an employee of the User Company under an undefined term contract.

    The working time will be the scheduled by the User Company. The clause that bans the possibility for the employee to be hired by the company after this kind of contract shall be void.

    The companies may not conclude these contracts in the following cases:

    • To substitute employees in strike.
    • To carry on dangerous works.
    • Where in the previous twelve months the company has cancel the work places, which are looking to cover, under an unfair dismissal or by any other the causes of the article 20, 21 and 52 c, of the Employees Statute.
    • To assign employees to other temporary employment agencies.

    The User Company is responsible of the protection in safety and hygiene matter in the work.

    The User Company will respond collaterally of the wage guarantees and of Social Security contracted with the employee during the effect of the manpower supply contract.

    If the contract is for a defined period, the employee after the contract will have the right of a compensation of 12 days per worked year.

    Jose Luis Herrero

    Áreas de práctica

    • Agencia
    • Inmigración
    • Propiedad Intelectual
    • Derecho Laboral
    • Delitos financieros
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