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Experts in spanish labour regulation - Employment collective dismissal

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The multinational enterprise sometimes needs to do some restructuring in one or more of the countries where they operate. This needs collective dismissals, translations, contractual changes, or even a bankruptcy proceeding if necessary. Restructuring in Spain have some formalities and particularities to take care.

Depending company’s reputation bankruptcy is not always first choice. They prefer labour measures in order to reduce expenses, which needs in Spain any one of the following justifications to be correctly explained in the communications the company has to gives to trades and employees.

  • Economic reasons.
  • Technical reasons.
  • Organizational reasons.
  • Productive reasons.


There is although one important issue to take into account before performing the strategy. According to Spanish Courts there must be explained this reasons with all multinational European’s results and economic data. That means that profits and losses must be explained, given and taken into account when explaining the economic reasons.

It you are a multinational, when explaining economic reasons it is necessary to refer to all economic data within Europe. No only those data from your workplace in Spain.

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

One other thing it is absolutely necessary to take care is the proceeding formalities. Without fulfilling them the dismissals could be considered null, and the company could be bounded to readmit the employees, with the obligation to pay salaries since the dismissal date. Knowing that the judicial proceeding could be more than one year long, the amount could be considerable high.

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


We have advised and defended all company size restructuring issues. Our lawyers and economists specialists can help you in any of the doubts you need to solve. Don’t hesitate to contact with us.


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Fecha de publicación: 14 November 2019

Última actualización: 20 January 2021

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