The information contained in this Newsletter is of a general nature and does not constitute legal advice


May 2010

LABOUR LAW

1. Creation of the Catalan Labour Inspection Authority

Law 11/2010 of 19 May has created the Catalan Labour Inspection Authority, which is an autonomous administrative organisation, with it own legal personality and full capacity to act. Its functions include carrying labour inspections, ensuring compliance with the labour rules and regulations, checking the contents of collective bargaining agreements, giving technical assistance to businesses, workers and public bodies, and investigating work accidents and industrial diseases. (More information)

2. Reporting requirements for the opening of a workplace or the resumption of activities

Order TIN/1071/2010 of 27 April, modifies Law 17/2009 on the free access to service sector activities, and the exercise of such of services. The order establishes the procedure and content of the reporting requirements for the opening of a workplace or the resumption of activities. (More information)

3. The dismissal of a new part-time employee on the basis of the decease of the partially retired employee with whom he was work-sharing is unfair

The judgment of the Labour Chamber of the Supreme Court dated 25 February 2010, held that the decease of a partially retired employee had no bearing on the hand-over contract executed with another employee with whom he was work-sharing. (More information)

4. The effects of a judgment annulling a part of or all a collective bargaining agreement are ex tunc

The judgment of the Labour Chamber of the Supreme Court dated 15 March 2010 determined the timing of the effects of a judgment declaring the nullity of part or all of a collective bargaining agreement. (More information)

5. A salary reduction will not be applied if the published CPI is lower than that forecasted in the collective bargaining agreement

In its judgment dated 5 April 2010, the Labour Chamber of the Supreme Court upheld the judgment of the Labour Chamber of the National Court dated 22 June 2009 which stated that a salary reduction will not be applied if the published CPI is less than that forecasted in the collective agreement. (More information)

6. Rejection of a claim against a law affecting a collective bargaining agreement on the basis that it is not unconstitutional as its purpose is to protect a constitutional right

The Labour Chamber of the National Court dated 10 May 2010 rejected the collective dispute claim that requested that air traffic controllers be reinstated in the relevant collective bargaining agreement that had been modified by a law. The court held the change in the law to be necessary, appropriate and proportional as its purpose was to protect a constitutional right. (More information)

7. Working hours can be modified as many times as necessary to care for a child

The judgment of the Labour Chamber of the High Court of Justice of Castile-La Mancha dated 16 November 2009, resolved the doubt as to whether a working mother who had previously requested a modification in her working hours to care for her child and who therefore had been awarded a reduction of her working hours, had the right to modify her timetable and whether she had to work everyday or whether she could choose the days herself. (More information)

8. A dismissal carried out around the time of union elections is not discriminatory

The judgment of the Labour Chamber of the High Court of Justice of Catalonia dated 15 December 2009 held that the dismissal of an employee carried out around the date of the notice of the election process is not sufficient to create reasonable suspicion that the dismissal was due to the worker’s union activity, especially when it is not proved that prior to the dismissal, the company was not aware of the worker’s union affiliation or promotional activities in connection with the union elections. (More information)

9. Freedom to decide on how to pay subsistence and travel allowances

The decision of the Labour Chamber of the High Court of Justice of Castile and León dated 22 December 2009 held that a change in the method of paying its employees’ subsistence and travel allowances did not constitute a substantial change in their working conditions. (More information)

10. An employee’s dismissal cannot be deemed null because she intends to become pregnant

The judgment of the Labour Chamber of the High Court of Justice of Andalusia dated 9 February 2010 held that an employee’s dismissal cannot be considered null because she has the private and secret intention to become pregnant and at the time of dismissal she is not pregnant, nor has she even begun any steps towards an in vitro fertilisation process. (More information)
 

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1. Creation of the Catalan Labour Inspection Authority

Law 11/2010 of 19 May on the Catalan Labour Inspection Authority (DOGC 5638/2010 of 28 May 2010)

This new law has created the Catalan Labour Inspection Authority, which is an autonomous administrative body with its own legal personality and full capacity to act.

This body is in charge of labour inspections on behalf the Generalitat of Catalonia. Its functions include ensuring compliance with the labour rules and regulations, checking the contents of collective bargaining agreements, giving technical assistance to businesses, workers and public bodies, issuing reports requested by judicial bodies, and investigating work accidents and industrial diseases. It is also responsible for providing reconciliation and mediation services in labour disputes and in voluntary arbitration proceedings, reporting to the authorities lacunas in the current legislation, and providing advice and technical support on the prevention of occupational hazards to comply with health and safety legislation.

2. Reporting requirements for the opening of a workplace or the resumption of activities

Order TIN/1071/2010 of 27 April on the reporting requirements for the opening of a workplace or the resumption of activities (BOE 1 May 2010)

This order establishes the procedure employers should comply with, in order to notify the authorities of the opening of a workplace or the resumption of an activity, and sets out the deadlines and content to be included in these communications.

The order simplifies the administrative steps required by the labour authorities in order to carry out construction work.

The order also encourages the use of electronic means to send the communication on the opening of workplaces and supporting documentation.

3. The dismissal of a new part-time employee on the basis of the decease of the partially retired employee with whom he was work-sharing is unfair

Judgment of the Labour Chamber of the Supreme Court dated 25 February 2010

This judgment analysed the consequences of the decease of a partially retired employee on the hand-over contract signed by another part-time employee, with whom he was work-sharing.

The Supreme Court stated that the purpose of partial retirement was to harmonize the interests of all the parties involved —the employer, the new part-time employee and the partially retired employee— and maintain the same number of jobs in the company. Therefore, the position affected by the hand-over contract of the new part-time employee had to remain in force, at least, until the partially retired employee were to fully retire.

In conclusion, the Supreme Court held that the decease of the partially retired employee implied the termination of his employment contract although this should have no bearing on the new part-time employee’s contract.

4. The effects of a judgment annulling a part of or all a collective bargaining agreement are ex tunc

Judgment of the Labour Chamber of the Supreme Court dated 15 March 2010

The Supreme Court held that judgments declaring all or part of a collective bargaining agreement null have a declarative nature and not a constitutive nature based on the fact that they merely confirm a situation that already exists, specifically, the nullity of the collective agreement. The judgment indicated that a collective bargaining agreement cannot contradict a higher-ranking rule.

Article 85.1 of the Statute of Workers states that collective bargaining agreements must abide by the law and that the effects of a declarative judgment are ex tunc, i.e., “from the outset”, according to the legal maxim quod nullum est, nullum producit efectum.

5. A salary reduction will not be applied if the published CPI is lower than that forecasted in the collective bargaining agreement

Judgment of the Labour Chamber of the Supreme Court dated 5 April 2010

The Supreme Court upheld the judgment of the National Court which stated that employees were entitled to the increase percentages established in the collective bargaining agreement.

The judgment stated that employees have the right to receive the salary increases established in the collective bargaining agreement, even when the published annual CPI is lower than that forecasted in the collective bargaining agreement.

The Supreme Court found that there was no unjust enrichment by the employees and held that the final salary could not be considered as either exorbitant or unaffordable for the employer.

6. Rejection of a claim against a law affecting a collective bargaining agreement on the basis that it is not unconstitutional as its purpose is to protect a constitutional right

Judgment of the Labour Chamber of the National Court dated 10 May 2010

The National Court (“NC”) rejected the collective dispute claim made by a trade union of air traffic controllers.

The trade union requested that air traffic controllers be reinstated in the relevant collective bargaining agreement by arguing that Law 9/2010 and Royal Decree 10/2010 have an effect on the contents of such agreement. However, the NC held that these regulations did not infringe the rights of association, strike and collective bargaining and that the change in the law was necessary, appropriate and proportionate. In short, the NC considered that the regulations gave rise to a minimum sacrifice for the workers affected and that they were introduced to ensure the safety and continuity of air traffic. Moreover, the decision clarified that a law can modify a collective bargaining agreement.

7. Working hours can be modified as many times as necessary to care for a child

Judgment of the Labour Chamber of the High Court of Justice of Castile-La Mancha dated 16 November 2009

This case related to whether a working mother had the right to modify her working hours in order to take care of her child. The employee had requested from her employer that she have Saturdays off so that she could care for her daughter, given that her husband worked on that day of the week, and she did not have anyone who could help her with child care.

The court considered that working hours could be modified as many times as necessary to care for a child provided that this does not negatively affect the employer. In addition, the court referred to the doctrine of the Constitutional Court which establishes that all measures that facilitate the compatibility of an employee’s work and family life, both from the perspective of protection against sexual discrimination and child and family protection, must prevail.

Therefore, as the employee’s request was the most appropriate for her daughter’s interests and her employer had no reason to reject her request, her employer had to agree to it.

8. A dismissal carried out around the time of union elections is not discriminatory

Judgment of the Labour Chamber of the High Court of Justice of Catalonia dated 15 December 2009

The judgment examined the classification of the dismissal of an employee without cause based on his trade union membership and preparatory actions in connection with the union elections.

The dismissed employee argued that the dismissal should be considered null and not unfair as the sole purpose of the dismissal was to punish him for his affiliation with and promotion of union elections.

The High Court of Justice held that the fact that the dismissal letter did not justify the dismissal could not be considered as evidence of discrimination and that failure to produce such evidence made this dismissal without cause unfair and not null. Therefore, as no anti-union and therefore discriminatory evidence was proven and the company was not aware of the worker’s union affiliation or his preparatory activities in connection with the union elections, the dismissal could only be qualified as unfair.

9. Freedom to decide on how to pay subsistence and travel allowances

Judgment of the Labour Chamber of the High Court of Justice of Castile and León (Valladolid) dated December 2009

The High Court of Justice of Castile and León held that a company’s change in the method of paying its employees’ subsistence and travel allowances did not constitute a substantial change in their working conditions.

In this case, the company had always living and overnight expenses by directly paying its employees the amounts established in the collective bargaining agreement. However, the company decided to change the method of payment by reimbursing only the actual expenses incurred by the employees.

The court stated that both methods of payment are provided in the collective bargaining agreement and that this modification is merely an example of the employer’s right to amend the terms and conditions of employment during the course of the employment contract and thus does not alter the fundamental aspects of the employment relationship.

10. An employee’s dismissal cannot be deemed null because she intends to become pregnant

Judgment of the Labour Chamber of the High Court of Justice of Andalusia (Seville) dated 9 February 2010

An employee’s dismissal cannot be considered null because she has the private and secret intention to become pregnant and at the time of dismissal she is not pregnant, nor has she even begun any steps towards an in vitro fertilisation process.

For reasons of legal certainty, the judge held that the legal protection awarded to a pregnant employee may not be awarded to an employee whose embryo transfer to the uterus has not yet taken place at the time of her dismissal.

The judgment made reference to the fact that the European Court of Justice has also taken a strict approach towards pregnancy as it does not protect employees who are undergoing in vitro fertilisation where the ovum has not yet been introduced into the uterus.

The information contained in this Newsletter is of a general nature and does not constitute legal advice