Temporary Layoff Procedure (ERTE) in Spain: Royal Decree-law 30/2020

The 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.

The Spanish government approves the regulation on remote working

The 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.

Company claims for Undue Payments to Workers

The 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.

Non-refundable Contributions by Shareholders in Spain

Non-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.

Insolvency Proceeding versus Company Liquidation

In 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.