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Experts in spanish labour regulation - Employment collective dismissal


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Josep Conesa. abogado laboralista (Barcelona)


Written by Josep Conesa

Labour and bankruptcy lawyer



Multinational enterprises sometimes need to do some restructuring in one or more of the countries where they operate. This gives rise to collective dismissals, transfers, contractual changes, or even a bankruptcy proceeding if necessary. Restructuring in Spain involves some paperwork and particular procedures that one must be aware of.

Depending on the company’s reputation, bankruptcy is not always the best option. Labour measures may be preferable in order to reduce expenses, in which case any one of the following reasons will need to be correctly explained in the communications the company has with its tradespeople and employees.

  • Economic reasons.
  • Technical reasons.
  • Organisational reasons.
  • Productive reasons.


There is one important issue which must be borne in mind before carrying out the strategy. According to the Spanish Courts, these reasons must be explained with reference to all of European multinationals' results and economic data. That means that, if you are a multinational, when economic reasons are cited, it is necessary to refer to all economic data within Europe, profits and losses, not only the data stemming from your workplace in Spain.

Therefore, if there are no losses or downsizing sales in the consolidated results, which would mainly explain the economic reasons, other reasons must be duly explained.

It is also very important to consider the relevant formalities. Without carrying out the necessary procedures, the dismissals could be considered null, and the company could be obliged to rehire the employees, with the obligation to pay their accumulated salaries from the dismissal date. Bearing in mind that the judicial proceeding could last more than one year, this amount could be considerably high.

It is absolutely necessary, therefore, to count on the best legal advice, with the best economist specialists.

Count on the BEST ADVIcE IN sPAIN:

We have advised on and defended all types of company restructuring issues. Our lawyers and specialist economists can help you to solve any queries that you may have. Don’t hesitate to contact us.



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Date published: 14 November 2019

Last updated: 27 March 2024