Spanish Labor Rights: Courts, Procedures, and Worker Representation

LIB Courts and Social Pyramid (Jutjats)

Supreme Court (TS)
National Court (AN)
High Court of Justice (TSJ)
Social Courts

FOGASA (Wage Guarantee Fund): Responsible for paying workers unpaid wages due to employer insolvency. It covers a maximum of triple the daily minimum wage (SMI), including extra payments, for up to 150 outstanding days. For severance pay, it covers a maximum of one year of daily SMI, including extra payments.

Procedure for Disagreement with Employer Decisions

1. First Ballot Reconciliation: Declares company and employee data and reasons for the claim. A date and time are set for a conciliation meeting with the employer.

2. Review of the Reconciliation Act: Possible outcomes:

  • Agreement: The employer pays the agreed amount or reinstates the employee. No lawsuit is needed.
  • No Agreement: The worker can file a lawsuit in the Social Court.
  • Employer Absence: Considered as no present need and demand balance.
  • Worker Absence: Considered as renouncing the claim; no subsequent lawsuit can be filed.

3. File a Complaint with the Competent Social Court: (If no agreement is reached). Jurisdiction is determined by the place of work or the defendant’s domicile, at the plaintiff’s choice. The complaint must match the ballot reconciliation allegations. The judge will accept the demand or request correction of errors and set a date for reconciliation and trial.

4. Judicial Conciliation: The judge attempts to mediate between the parties. If no reconciliation is possible, the case proceeds immediately to trial.

5. Trial: The case is heard and evidence is presented.

6. Sentence: The Social Court issues a ruling on the dismissal:

  • Fair Dismissal: Justified causes alleged by the employer or objective causes are proven. Effect: Employment relationship terminates without compensation (unless objective causes warrant 20 days’ salary per year worked).
  • Unfair Dismissal: Causes or grounds alleged for dismissal are not proven, or legal requirements were not met. Effect: The judge orders reinstatement or compensation of 45 days’ salary per year worked (maximum 42 monthly payments).
  • Null Dismissal: Proven discrimination or violation of fundamental rights. Effect: Employee reinstatement and payment of lost wages during the process.

Preparation of Receipts

Discharge Definition: A document the company provides to the worker upon termination of employment, regardless of the cause.

Parts of the Receipt

  • Liquidation: Lists amounts due to the employee (paid holidays, extra payments, vacation, compensation).
  • Extinction: Explicitly states the termination of the employment relationship.

(If the worker agrees with the settlement but not the dismissal, they should not sign the receipt or state “no conforme” (not in agreement) if signing.)

(Settlement Calculation: Days worked in the month + proportional Christmas bonus + proportional June bonus + proportional compensation for untaken holidays – Social Security and income tax deductions.)

Employee Participation in the Company

Jus Variandi Definition: The employer’s power to assign the employee tasks not specified in the contract, but similar in nature, for the smooth running of the business.

Worker representation can be:

  • Collective Unit Representation: Through personnel delegates and the company committee.
  • Collective Association Representation: Through unions.

Collective Unit Representation

Personnel Delegates: For companies with fewer than 50 workers.

Number of EmployeesNumber of Personnel Delegates
6 to 10No personnel delegate required
10 to 30One delegate (required)
31 to 49Three personnel delegates

Company Committee: For companies with 50 or more workers.

Number of EmployeesNumber of Company Committee Members
50-1005 members
101-2509 members
251-50013 members
501-75017 members
751-100021 members
1001+2 members per 1,000 employees (maximum 75)

Performance: Acting collegially.

Union Collective Representation

  • Non-profit organizations aiming for economic and social progress of their members by maintaining or improving working conditions. Unions emerged in the 19th century with the rise of worker consciousness and struggle.

Collective Bargaining Agreement

Scope: Functional, territorial, personal, temporary.

Minimum Content:

  • Parties to the agreement.
  • Functional, territorial, personal, and temporal scope.
  • Format, conditions, and notice period for terminating the agreement.
  • Designation of a joint committee representing both parties.

Collective Disputes

  • Individual: Between one employee and one employer, affecting only those two parties.
  • Collective: Affecting a group of workers.

Strike

A measure of pressure and defense of workers’ interests. Recognized individually but exercised collectively.

Effects: Suspension of the employment contract (no salary payment), suspension of Social Security obligations, employer cannot replace striking workers, strike days should not be deducted from holidays.