Spain: Increase in the basis used to calculate the severance payment for dismissal

On 3 May 2017, the Spanish Supreme Court (the “Supreme Court”) issued a judgment in which it declared that employer’s contributions to (i) medical insurance policies; (ii) life insurance policies; and (iii) pension plans, should be treated in the same way as salary (as benefits in kind). Contributions must therefore be included in the annual salary … Read more

Spain: Collective dismissals based on objective grounds

Evidence of the cause for dismissal, compliance with information or documentation obligations The High Labour Court of Madrid rendered two decisions, on 30 May 2012 (415/2012) and 11 July 2012 (542/2012), regarding the evidence presented as to the founding grounds for dismissal and on the documentation and information requirements in the context of collective dismissals. … Read more

Europe: Collective redundancy consultation: ECJ fails to rule on trigger due to lack of jurisdiction

Uncertainty remains over the trigger point for collective redundancy consultation where a strategic business decision foreseeably or inevitably leads to redundancies.  It had been hoped that the ECJ would provide some much needed clarity on this issue following the Advocate-General’s opinion in USA v Nolan.  Unfortunately the ECJ concluded that, as civilian staff at a … Read more

Spain: Judicial control of grounds for dismissal (individual or collective)

In relation to judicial control over the grounds for dismissal, Labour Court 3 of Pamplona, in a decision rendered on 27 September 2012, rejected the claim submitted by two employees who were dismissed for objective reasons. Indeed, Act 3/2012, following the criteria established by Royal Decree-Law 3/2012, introduces more flexible criteria to determine whether or … Read more

Legislative proposals: draft EU redundancy proposals

In mid-August the Telegraph reported the publication of draft proposals by the European Parliament on restructuring and redundancies, including a requirement for employers to measure the “psycho-social health” of employees and, where there is a significant deterioration in an employee’s mental health, the provision of training and other assistance.  The proposals are at a very … Read more

Spain: Internal flexibility and substantial changes to conditions of employment

In its decision 61/2012, dated 28 May, the Spanish Labour Court validated a substantial modification of employment conditions affecting remuneration schemes in IBM, thus taking advantage of the more permissive criteria established in the Labour Reform regarding the economic grounds for internal flexibility as an alternative to restructuring through dismissals. Indeed, Act 3/2012 only requires … Read more

Mass redundancies in EMEA

Recent times have seen regular announcements of mass redundancies, more often than not from a company with global operations. These companies face the daunting challenge of analysing and comparing employee rights under the different legal regimes and co-ordinating the headcount reduction internationally.  Our recent briefing provides an overview of the regimes in key jurisdictions in … Read more