DUE DILIGENCE CASE

LABOUR DUE DILIGENCE Bazarrisas, S.A.

Federica Páez is the new recruiting in the company Bazarrisas as chief for the HHRR department. This department is in charge to control and decide all legal labor issues in the company.

Bazarrisas is a company which business is to sell joke and costumes items, and has experimented a significant growth for the last 10 years. Therefore from the beginning who was a family team, there are 63 employees, 41 dedicated to the promotion and direct sales, and the rest in administration tasks.

The employees who are not in the offices, do periodical visits during their 8 hours journey, following a previous route done by the company, with a company car for their trips.

Federica Páez asked to the CEO she wanted an organization chart so that she knows how the different departments are organized.

There is a marketing department with a General Marketing Director and 9 employees. There is general sales department with a General Sales Director with 7 regional heads and 33 sellers. There is a financial department with 6 employees. And there is a RRHH Department whose General HHRR Director is Federica Páez, with 5 employees.

There are two situations that has to be faced in her first day in the company. First, at 11:00 am, there is a meeting where the company makes her know that there has to be done a dismissal communication to a sales employee and the documents must be done as soon as possible. Second, at 16:00 pm, she has to assist to a meeting where there will be discussed a holiday calendar modification because since nowadays the company closed during august, but they are thinking not to close during august, and establishing shifts.

Ask the following questions:

 

  1. Because the total number of employees ¿do you think that the company could be sanctioned by the labour authority for not having employed some disabled employees?

 

  1. ¿Which kind of contract do you think the sales employees should have? Is it a labour relationship or a commercial relationship? Argue your answer. And the General Managers ¿which kind of contract do they need to have?

 

  1. About the dismissal ¿How much advance notice does the company have to give to the employee?

 

  1. About the calendar: the employees have done always vacations during august because the company where always closed. Now, if the company won’t close during august ¿can the company change unilaterally the vacation agenda?