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Labor Newsletter - May 2021

Spain - 

Nullity of collective dismissal and freedom of enterprise

Federico Durán López

Non-compliance with collective dismissal procedures can be sanctioned in various ways, but, in most cases, the execution of a judgment of nullity of a collective dismissal could not be carried out without violating the freedom of enterprise.

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News

  • The Government sets the objective of reforming the labor market before 2022
  • ERTEs will be maintained until May 31, 2021 while talks continue between the Government and the social partners on additional extensions
  • The compensation registry tool is now available
  • Labor Inspectorate publishes Technical Criteria No. 104/2021 on psychosocial risk actions
  • Spain transposes the new Directive on the posting of workers in the framework of a transnational provision of services

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Judgments

  • The majority of judicial doctrine is in favor of the "prohibition of dismissal" only entailing unfair dismissal
  • Non-compliance with the obligation to prorate special payments allows employees to claim, in addition, the amount already paid on a pro rata basis
  • The change in the setting of bonus objectives does not constitute a substantial modification of working conditions when this possibility is established in the individual agreement
  • The Constitutional Court admits that a dismissal carried out with a test that has violated fundamental rights may be unjustified
  • The High Court of Justice of Madrid overturns a judgment requiring reinstatement in the event of unfair dismissal

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