Temporary Layoff Procedure (ERTE) in Spain: Royal Decree-law 30/2020The Royal Decree-law 30/2020 on social measures in defense of employment addresses extensions for force majeure Temporary Redundancy Plans, as well as Temporary Redundancy Plans due to economic, technical, organizational, or production reasons linked to COVID-19. It also introduces Temporary Redundancy Plans for impeded or limited activities.Read more
The Spanish government approves the regulation on remote workingThe health crisis by COVID-19 has exponentially increased the number of people working remotely, in particular, those teleworking in Spain. The lack of a specific regulation, however, caused legal uncertainty for both the company and the workers. Hence, the Spanish Government has decided to regulate this type of work.Read more
ERTE for COVID-19 resurgence in Spain, how should the company apply for it?The Royal Decree-law 24/2020 of 26 June provides for specific labour measures to mitigate the impact of the new pandemic outbreaks on the activity of companies in Spain: ERTEs on the grounds of force majeure and ERTE due “to resurgence” of COVID-19.Read more
Priority of keeping workers’ representatives in the company in the COVID-19 ERTEThe Workers’ Statute grants workers’ representatives priority to remain in the company or the workplace over other workers. Recent judgments in Spain limit this prerogative in the COVID-19 ERTE.Read more
Company claims for Undue Payments to WorkersThe basis to claim an undue payment appears in articles 1895 and 1901 of the Spanish Civil Code and resides in the legal obligation between a person who receives what he/she is not entitled to and the entity that makes the payment by mistake.Read more
Non-refundable Contributions by Shareholders in SpainNon-refundable contributions are an effective and immediate mechanism for injecting funds into a company. Its purpose may be to solve the company’s financial imbalance, provide liquidity to the company or undertake a specific project. Unlike capital increases, non-refundable contributions do not require formalization in a public deed, nor registration with the Commercial Registry.Read more
Informative Note: The new Insolvency Law (RDL 1/2020)In the following informative note, we address the Royal Legislative Decree 1/2020, of 5 May, that approves the redrafted text of the Insolvency Law, and revises its structure and key characteristics.Read more
How to determine the insolvency status of the company in the insolvency proceedingsThe state of insolvency obliges companies to apply for the insolvency proceedings. We analyse some facts that can help to identify this status, as well as the most commonly used accounting formulas to predict it: the acid test and the Altman Z-score.Read more
Express Insolvency Proceedings: an alternative for companies without assetsIn Spain, the Insolvency Law provides for the processing of express insolvency proceedings for those companies with no assets nor properties (or that are of a residual nature), with the corresponding savings in time and costs that ordinary insolvency proceedings would normally entail.Read more
Insolvency Proceeding versus Company LiquidationIn times of crisis, companies may find themselves in a legal cause for dissolution. In this article, we analyse when they should initiate a bankruptcy proceeding and when they should opt for the dissolution and liquidation of the company.Read more
