Spain provides companies with a range of economic, labour, contractual, corporate, procedural and fiscal measures. The Covid-19 legislation complements them with new economic and procedural measures to prevent corporate insolvency.
Article 18.2 of Law 10/2021 of 9 July on remote work establishes the obligation for companies to have an internal policy defining the modalities of exercising the right to disconnection and the training and awareness-raising actions for staff on the reasonable use of technological tools.
Article 21 of the Workers’ Statute (“ET”) regulates the post-contractual non-competition clause in Spain. One requirement for its validity establishes that an “adequate financial compensation is paid to the worker”.
Although Royal Decree-Law 5/2021 exempts directors from the duty to file for insolvency proceedings, it does not exempt them from the responsibility to avoid the winding-up of the company.
Pre-bankruptcy mechanisms and labour, corporate or procedural measures can prevent and restrain the high number of insolvency filings expected following the insolvency moratorium in Spain.
Official data reveal a sharp increase in insolvency filings in 2021. Estimates suggest that after the extended moratorium on insolvency proceedings until 31 December, the number of insolvency proceedings will rise significantly.
The end of the state of emergency in Spain marks 9 August as the end date for remote working. However, the entry into force of RDL 28/2020 encourages this type of work, whose mixed remote working models are becoming more apparent. Companies will have to adapt their labour regulations to the new law.
The possibility of designating a Foreign Director is one of the most pertinent questions for foreign individuals and companies intending to develop a business via a capital company in Spain.
In Spanish law, there is no conclusive solution regarding either the criterion applicable to the distribution of the maximum sum insured between the injured parties or the appropriate legal proceedings for its effectiveness.
NCMC’s Circular 1/2021, dated 20 January, develops a regulatory framework whose primary purpose is to facilitate grid access to electricity producers, including energy storage facilities. It removes obstacles that could prevent access to new market operators and electricity from renewable energy sources.