It seems more and more obvious We are facing the abyss of a new economic recession. Recent world events, combined with rising inflation, tightening financing conditions and the energy crisis, herald a ‘perfect storm’ for autumn. we talked to Luis Angel Garrido MartinezAn experienced business lawyer at Devesa & Calvo Firm, which he joined from Big Four PwC in July of this year, about the adjustments companies are preparing after the summer.
same month, The World Bank published an article about the possibility of an imminent global recession. He notes that, as with the recent pandemic, there was substantial weakening over the years before all the world crises.
Spain’s labor market has resisted a decline thanks to tourism, but now we are facing the end of high season and an energy crisis triggered production costs and caused programs like IMERSO to run out.
On the other hand, from this fall employment protection periods begin to expire from companies that benefited from the exemption during the pandemic.
At this stage, many companies have already started planning restructuring measures In the face of the upcoming economic environment.
Of course, the ERTEs we are familiar with from the pandemic It is a tool that allows the workday to be temporarily stopped or reduced. part or all of the workforce when there are economic, technical, organizational or production reasons (known as ERTE ETOP) or force majeure. With this, it is possible to give an answer temporary decline in activity without destroying employment.
After the Labor Reform, the RED Mechanism was added, a type of ERTE ETOP that had to be activated earlier by the Council of Ministers for a sector of the economy or a certain time cycle. For example, there is currently an active RED Mechanism for the travel agency industry.
The main difference is that the ETOP ERTEs and the RED Mechanism should be negotiated with workers’ representatives. or otherwise with the most representative unions; Due to force majeure, ERTE should only be authorized by the Employment Agency.
Another important difference is the social protection of the affected workers. and while this provides access to unemployment benefits or subsidies due to ETOP ERTEs and force majeure, the RED Mechanism also provides access to new job sustainability and maintenance allowance that does not exhaust unemployment or require a predetermined period of occupation. .
Actually, A 20% exemption from Social Security contributions is foreseen for ETOP ERTEs.
On your own behalf RED Mechanism allows exemptions of up to 60% and due to force majeure, ERTEs can benefit from 90% exemption.
However, in all these cases, bidding is required. training for affected personnel and assume the relevant obligation to maintain employment for 6 months following the expiration of the measure.
For Covid ERTEs, the latest criteria in Labor Inspection, limited the return of the person affected by the violation to workplace coverage. However, it is still a controversial criterion because of the mismatch and the disproportion between its consequences (think of the hotel industry, for example, where it could mean almost two years’ payback for hundreds of workers). So it is not excluded that it may be nuanced in the future, but of course who will dare to throw the first stone?
In any case, Labor Reform has come to make it clear, For future exemptions, such violation will only result in reimbursement of contributions for the affected worker.
Of course, we also have other legal tools: dismissals for objective reasons, collective dismissals, individual or collective transfers and significant individual or collective changes in working conditions.
These figures allow the workforce to be resized according to actual production needs, reorganized without turning jobs off or adapting working conditions to the new production reality.
Basically this necessitates the need for the measure to be negotiated with workers’ representatives. or in the absence of this, as a novelty after the labor reform, with persons selected by the workforce who may be the most representative union and have the right to be part of the negotiating committee of the collective bargaining agreement applicable to the company. Thus, collective bargaining is strengthened by the dominant role of trade unions.
A large part of the productive texture of our lands corresponds to Family Companies, which have a great relationship of trust with their employees and have the mission of continuity and stability of employment.. In this context, negotiation with the workers becomes an important way of reorganizing the means and conditions of production.
Inside Devesa & CalvoFor example, We have successfully negotiated the conversion of regular fixed contracts to discontinuous fixed contracts in the hotel industry to allow effective working hours to be adjusted according to the opening periods of hotels, or to allow teleworking framework agreements that make it possible to face rising energy costs.
But basicallycompanies need a comprehensive approach to adapt to new economic conditions. That’s why the key to securing the future is to have a cross team. professionals evaluates not only the results of labor, but also financial and commercial ones.
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Devesa & Calvo Lawyers
- Passeig Esplanada d’Espanya, 1st, 3rd right, 03002 Alicante
- Phone: 965296180