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Newsletter: No. 18 - June 2011

Clicking on the headline of each news item, you have access to the details of it.

Detail Newsletter No. 18 - June 2011

  • Hiring: a commitment to societyHiring: a commitment to society

    The first issue to address is the formalization of the contract, which may be in writing or orally. Shall be in writing when so required by statute and in any case, the contracts:

    - Practices and for training
    - part-time, permanent-intermittent and relay
    - home work
    - to perform a task or service
    - insertion and the workers hired in Spain for Spanish companies abroad.
    - for a specified duration of which exceeds four weeks

    The contract must also consider the duration contracted service. May be concluded for an indefinite period or for a fixed period, in cases where it is legally possible. There, on the other hand, the possibility of establishing a trial.In the case of being agreed, must be fixed in the contract. Its maximum duration will be set in collective agreements and, failing that, do not exceed:

    - Six months for qualified technicians.
    - Two months for other workers.
    - Three months for other workers in firms with fewer than 25 employees.

    During the trial period, the employee will have the same rights and obligations for the job they perform, like a template.

    When the employment relationship is more than four weeks, the employer must provide information to workers, ie all the essential elements of contract and the main conditions for implementation of the work performed. Is made in writing and within two months. The information shall include, or indicate precisely and specifically, the reference law, regulation or collective agreement, provided it allows the worker information.

    Public and private companies employing a number of 50 or more workers are obligation hiring the disabled, at least 2% of the workforce, with some exceptions.

    A basic copy of the contracts made ??in writing must be submitted within ten days the legal representatives of workers. Excluding special relations contracts of senior management, for which sufficient notification.

    Finally, employers are obliged to inform the Public Employment Services within ten days the content of employment contracts entered into or extensions thereof, should or should not be in writing. This is done by submitting a copy of the contract or its extension.

    Tipos de contrato

    Source: Back Top

  • Labor Reform: The bureaucracy of the new legislation hampers SMEs ERELabor Reform: The bureaucracy of the new legislation hampers SMEs ERE

    Nine months after the labor reforms came out of Parliament, culminates the development of the regulation of Records of Employment Regulation, recently published in the BOE.

    Of course, the forecasts pointed to a clarification of the objective causes for dismissal, for the future of the company not depend on the interpretation of a judge or the labor authorities, are not met . Quite the contrary.

    The regulation has detailed all the documentation that companies must submit to establish a workforce adjustment. In short, the mechanics of ERE suddenly becomes bureaucratized, preventing, or at least more expensive, small and medium businesses that do not have sections of the resource accounting attend ERE.

    Yes, the experts acknowledge the technical level that is reflected in the regulations and was not present at the labor reform. Federico Durán, professor of labor law and partner at Garrigues, remember that the regulation can not do more, you can not change a labor reform that was unsatisfactory. At least, says Duran, concrete rigorously all the procedures to be carried out to present an ERE. And this was their function.

    More bureaucracy expands the required documentation

    One aspect that has clarified the rules are the documents to be submitted by a company. In the above rules, as dictated by law only the need to file a report. But now the employer must show: the annual accounts of the last two complete fiscal accounts, income statement, statement of changes in equity, statement of cash flows, memory, exercise and report management, among others. This duly audited. If you do not need to audit, you should attach a statement of the company representatives to explain the audit exemption. In addition to the provisional accounts of this exercise.

    The documentation would end here if the losses are real and not future. The company projected losses to justify faces another major challenge, presenting: loss forecast detailing the criteria used, technical report on its character and evolution, industry data, market trends, the company's position and so on .

    So, if we put ourselves in a small company, we not only drive away the bureaucracy, but the cost would be the preparation of these reports to initiate the negotiation of a more expensive ERE us further adjustment.

    It should be noted that the most used for companies to find some flexibility is dismissal, an issue that the reform of collective bargaining should change, at least in the parliamentary process that starts now.

    What's more, all this must be accompanied by a plan of social support, which is already mandatory in the standard.

    Future losses as a cause for dismissal

    One of the major objectives in the negotiation of labor reform was to clarify the economic causes of objective dismissal for his interpretation is not in the hands of the judge or competent authority in the workplace if a collective redundancy.

    To achieve even raised develop an extensive list of cases in which the adjustment was warranted template this way. However, it was determined that the causes are very subject to change and thus causes many would stay off the list within a very short time.

    So, the government opted to make an open declaration. Companies attending economic reasons when the results of the company discards "a negative economic situation." This explanation is the one that existed in the legislation. The new text complements it by adding "the existence of current or anticipated losses," but are merely temporary, or "the persistent decline in their income."

    Before a company had to incur losses for over a year to present an ERE. Now the company is supposed not to expect much. Just to anticipate them and it would justify such forecasts. And, of course, recording a decrease of income.

    Ultimately, whether the practice corresponds to the theory finally recorded in the standard, the cost of dismissal is significantly cheaper, as they may dismiss a compensation of 20 days per year worked up to a limit of 12 months in many more assumptions as before.

    The decision remains in the hands of judges

    Despite the progress, experts do not believe all the way is done. Lack interpretation of individual judges for dismissal and employment authority in the case of the ERE. In fact, before the reform, the specific reasons for dismissal were objective in the case law that had created the judges. And with the current reform will be the same.

    President Sagardoy Lawyers Iñigo Sagardoy highlights that the reform itself rather than clarifies the economic causes of layoffs, although we have to wait to the interpretation of judges.

    For example, lower income will be cause for dismissal, but what income level justifies a decrease of ERE in the company? The association of judges Francisco de Vitoria stressed this newspaper that the reform "left to the judges' decision."

    Limit the consultation period to a maximum of 30 days

    Apart from clarifying the procedures to follow to file an ERE, one of the questions that most can expedite the processing of the template settings is that the law will eliminate the consultation period to a maximum of 30 days. Previously, this period is extended at least 30 days.

    In this way, see how the negotiations with the unions dragged on for months, in which the employer are relaxing their conditions by signing more than 70 awards and 80 days per year worked.

    Source: El economistaBack Top

  • The European Commission is now considered 'necessary' the VAT hike in SpainThe European Commission is now considered 'necessary' the VAT hike in Spain

    After the European Commission forecast a fall of the Spanish economy by the VAT hike in July, the Economic Affairs Commissioner, Olli Rehn, has recanted and now says the measure "will not have a significant negative impact" on growth advance beyond the spending decisions of consumers.

    Thus, the Finnish political has backed the decision of the Government of José Luis Rodríguez Zapatero, arguing that this tax increase is necessary to reduce the deficit.

    At a press conference that was attended by the Spanish Vice President and Finance Minister, Elena Salgado, Rehn said the European Commission "welcomes the determination of Spain to ensure effective for fiscal consolidation is necessary."

    In its latest economic forecasts, Brussels had predicted that the increase in VAT would cause a relapse in the Spanish economy, with a contraction of 0.2% of GDP in the third quarter and an annual fall of 0.6%, double the planned by the government.

    The EU executive on Wednesday adopted its opinion on the Spanish Stability Programme. Apart from supporting the increase in VAT, Rehn did not want to further their assessment of the adjustment measures Spanish.

    The European Commission asked Spain in its assessment that concrete measures it intends to take to reduce the deficit and putting it below the threshold of 3% in 2013, fulfilling the EU requirements. On the other hand, believes that the expectations are too optimistic Spanish, which could translate into tax revenues lower than expected government.

    Brussels believes that the Spanish government has not detailed enough in its stability plan adjustment measures, especially to be taken from next year, which will be accelerated when the consolidation of public finances once the recovery is confirmed .

    Source: El MundoBack Top

  • Modified the standard labeling, presentation and advertising of foodstuffs Modified the standard labeling, presentation and advertising of foodstuffs

    The Council of Ministers approved a Royal Decree amending the General Standard for the labeling, presentation and advertising of foodstuffs, effective July 31, July 1999.

    The General Standard for Labelling, presentation and advertising of foodstuffs joined the Community rules on the approximation of the laws of the Member States in the labeling, presentation and advertising of foodstuffs.

    This standard was later modified by other Royal Decrees of 2002, 2004, 2005 and 2008 in order to incorporate the Spanish legal provisions of directives adopted in this field further.

    Nevertheless, in 2008 approved two EC regulations on Flavourings and certain food ingredients with flavoring used in foods, and introduce various modifications in the field.

    Such is the case of the need to identify the enzymes and ingredients when they are used in the manufacture of food products according to their function in food. For example, the presence or use of the "invertase" (an enzyme that allows the transformation of sugars in some others) in pastry be reflected in the list of ingredients as a preservative and moisturizer, as it helps maintain the conditions of retention optimum moisture in the product.

    In addition, Royal Decree approved today by the Council of Ministers shall proceed to make the adjustments made by the Community rules on flavoring.

    Although both regulations have direct effect, it was decided to modify existing regulations to ensure that both implementations of the standard and consumers more aware of the applicable law on labeling.

    Source: PreparedBack Top

  • The Government will raise the salary cap can not be seized for nonpayment of the mortgageThe Government will raise the salary cap can not be seized for nonpayment of the mortgage

    The Prime Minister, José Luis Rodríguez Zapatero, has announced the first of the "new measures" to protect mortgage holders in trouble from which he had already spoken in his first speech in the debate on the state of the nation. Zapatero, during his reply to the CiU spokesman in Congress, Josep Antoni Duran Lleida, has announced that the government will raise the salary cap attached.

    • Pass the minimum wage (SMI) plus 10% plus 50% SMI
    • Thousands of homeless, and homeless, to follow settled accounts with the bank
    • A mortgage lien will dispose of 641 euros to 961 of their salary
    • Anticipates that there will be 'initiative' clauses against 'abusive', but no concrete

    If in April 2010, under the so-called covenants Zurbano and increased the threshold of minimum wage (SMI) to plus 10% SMI (20% extra for every person that has mortgaged to a charge), now goes far beyond this limit and wage rises 'untouchable' in an embargoed until SMI mortgaged plus 50% plus another 30% for each additional member dependents who do not have their own income. That is, a person who has lost his home and still have a debt with the bank will have up to 961 euros a month from your paycheck to your daily life. So far, this amount was 641 euros. Figures that Zapatero himself has handled in the Congress of Deputies.

    The salary is the income unattachable a financial institution can not claim a lien regardless of the debt that is owed it to her. Many mortgage, even if they have lost their homes, have yet to remain accountable to the bank, the property is worth less than the loan it signed, and it overwhelms them part of their monthly salary. Until now, his salary "untouchable" by the entity that could make your life amounted to 641 euros normal. This will could reach 961 and 1,350 euros for those who have by two members of the family without income.

    'Let's take a strong step to prevent people being executed enter into an untenable situation'
    In addition to this measure, Zapatero said: "Let's take a step further, a bold, blunt, to prevent families and individuals in foreclosure enter a truly untenable position to make a new effort in this direction," in CiU spokesman response in Congress. Thus, Zapatero said the government is studying the foreclosure proceedings on some "alleged abuses" and advance to take any action to curb "abuses objectives" in the bidding process. "Accomplish something in that direction "he stated.

    Sebastian says it will prevent 'price gouging'

    Zapatero's words have been endorsed by the Minister of Industry, Miguel Sebastián, in the halls of Congress remarked that "we should avoid these foreclosures and evictions at prices that are abusive to their families." In this sense, he was convinced that it is compatible with avoiding injury to a bank, because it is "putting a floor on the price decline that often require" entities.

    CiU presented a resolution

    Meanwhile, Duran i Lleida has claimed that the Government has failed to address social policies for housing assistance in times of crisis, foreclosures, aid for unpaid rent problems are "pending for the near future." In this regard, he assured that his parliamentary group presented a proposed resolution to the specific debate on the evictions, which will be voted on Thursday.

    Source: El MundoBack Top

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