January 2013

LABOUR LAW


 1.Extension of the PROFESSIONAL RETRAINING programME for WORKERS whoSE unemployment benefit HAs RUN OUT

Royal Decree 1/2013 of 25 January on the extension of the professional retraining programme for workers whose unemployment benefit has run out and other urgent measures for employment and unemployed workers’ welfare (“Royal Decree-Law 1/2013”) introduces amendments in several areas. It regulates: (i) the extension of the professional retraining programme created by Royal Decree-Law 1/2011 of 11 February; (ii) the adoption of several measures aimed at reducing the adverse effects of the drought in the Autonomous Communities of Extremadura and Andalusia; (iii) the recovery of unemployment benefit for employees whose employment contracts were suspended or whose working time was reduced, before subsequently being made redundant; (iv) the extension of the period to fully implement the educational programmes linked to the training contracts.

 2.Expiry of SANCTION PROCEEDINGS after THEIR interruption

The Contentious-Administrative Chamber of the Supreme Court declared the nullity of the settlement report in sanction proceedings that were interrupted for more than three months (the maximum legal limit at that time) resulting in the expiry of the proceedings.

 3.EVIDENCE BASED ON AUDIO OR VISUAL RECORDINGS OBTAINED WITHOUT THE CONSENT OF THE PARTY CONCERNED

The High Court of Justice of Madrid applied the criteria of proportionality in two judgments in order to analyse the legality of the means of evidence based on audio or visual recordings used in dismissal procedures.

 4.groups of companies and the enforcement of JUDGMENTS

The judgment of the High Court of Justice of Madrid dated 15 October 2012 analysed the feasibility of enforcing a judgment against a group of companies for labour proposes when at first instance its enforcement was suspended because two of the group’s companies had entered into an arrangement with creditors.

 5.express prohibition of the personal use of IT RESOURCES

In a judgment of 29 October 2012, the High Court of Justice of Madrid held the dismissal to be fair of an employee who, despite being aware that the practice was expressly forbidden, had used his employer’s IT resources for personal proposes. The High Court found that the company had not tolerated this use.

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1. Extension of the PROFESSIONAL RETRAINING programME for WORKERS whoSE unemployment benefit HAs RUN OUT

Royal Decree 1/2013 of 25 January on the extension of the professional retraining programme for workers whose unemployment benefit has run out and other urgent measures for employment and unemployed workers’ welfare

Royal Decree 1/2013 of 25 January on the extension of the professional retraining programme for workers whose unemployment benefit has run out and other urgent measures for employment and unemployed workers’ welfare (“Royal Decree-Law 1/2013”) extends until 16 August 2013 the professional retraining programme for workers whose unemployment benefit has run out. It also establishes a six-month period of automatic extensions from 16 August 2013 onwards, provided that unemployment in Spain exceeds 20% according to the latest Labour Force Survey published before the date of the corresponding extension.

The retraining programme was created by Royal Decree-Law 1/2011 of 11 February on urgent measures to encourage stable employment and provide professional retraining for unemployed workers. The programme involves analysing the employability of the worker and active measures to encourage professional retraining or reinsertion in the labour market. Workers taking part in the programme whose monthly income does not exceed 75% of the minimum wage, excluding extraordinary payments, will be entitled to 75% of the monthly National Indicator of Earnings (IPREM) for up to six months.

This regulation also includes a reduction in the minimum number of working days contributed to be entitled to unemployment benefit or to the farm income in the case of temporary agricultural workers in the Autonomous Communities of Andalusia and Extremadura, regulated by the first and second transitional provisions of Royal Decree 5/1997 of 10 January. Workers will only have to prove that they have contributed for a minimum of 20 working days in the last twelve months before being made redundant to be entitled to unemployment benefit, provided that they submit their application within 6 months of the entry into force of Royal Decree 1/2013. If the application was submitted between 1 September 2012 and the date of entry into force of Royal Decree 1/2013, a new application may be submitted to receive the benefit set out in the new regulation.

Moreover, Royal Decree 1/2013 extends the period to recover the unemployment benefit established in article 16.1 of Law 3/2012 of 6 July on urgent measures to reform the employment market (“Law 3/2012”). In this regard, workers whose employment contracts were suspended, whether or not continuously, or whose working time was reduced, either pursuant to article 47 of the Statute of Workers or as a result of insolvency proceedings between 1 January 2012 and 31 December 2013, before being made redundant on objective grounds, are entitled to recover their unemployment benefit, provided that their employment contracts were terminated between 12 February 2012 and 31 December 2014.

The regulation also extends the period established in the second paragraph of transitional provision eight of Law 3/2012, such that until 31 December 2013 training and apprenticeship contracts may be implemented even if there are no professional training titles or specialised certificates linked to the work actually to be carried out or even if there are no training centres available for the training programmes. In this regard, Royal Decree-Law 1/2013 establishes that the training activity must include the minimum guidance contents set out in the training database, available at the National Public Employment Services’ website.

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2. Expiry of SANCTION PROCEEDINGS AFTer THEIR interruption

Judgment of the Supreme Court dated 6 November 2012

In a case heard by the Supreme Court (“SC”) the appellant alleged that an interruption exceeding the maximum three-month term (at that time) of inspection activities in sanction proceedings for the violation of the employees’ right to privacy and dignity and resulted in the expiry of the proceedings, thus leading to the settlement report being declared null.

Upon consideration of the applicable regulations, the SC held, as in its decisions of 12 November 2001 and 21 July 2004, that although article 8.2 of Royal Decree 928/1998 of 14 May does not stipulate the expiry of sanction proceedings as a consequence of their interruption, the general rules on sanction proceedings established in Law 30/1992 of 26 December must be applied and the expiry of the proceedings declared.

The SC further stated that exceeding the maximum legal term for the interruption of the proceedings will give rise to the general consequence applicable to such cases in proceedings initiated ex officio; where the Administration exercises its powers to impose sanctions or to intervene, implying the nullity of the settlement report as the procedural guarantees had not been respected.

The decision means that the interruption of sanction proceedings exceeding the maximum legal term established will lead to “(1) the declaration of the expiry and filing of the proceedings after an interruption of more than three months; (2) the need to initiate new and different acts of verification; (3) the need to include the interruption and its consequences in the settlement report; (4) the inclusion in the settlement report of the express reason for the actions performed prior to the interruption”.

Notwithstanding the above, Law 13/2012 of 26 December on measures to prevent illegal employment and social security fraud, has changed the term of the sanction proceedings. The initial duration of inspection activities now stands at nine months, which may be extended by a further nine months if the Labour Inspectorate encounters special difficulties in carrying out its activities. The term for the interruption of sanction proceedings is currently five months.

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3. EVIDENCE BASED ON AUDIO OR VISUAL RECORDINGS OBTAINED WITHOUT THE CONSENT OF THE PARTY CONCERNED

Judgments (2) of the High Court of Justice of Madrid dated 8 October 2012, appeals 3000/2012 and 4966/2012

In the case heard by Division 5 of the High Court of Justice of Madrid (“HCJM”), appeal 3000/2012, a declaration of nullity was sought for a decision concerning the dismissal of a chef in which it was held that the dismissal procedure was unfair.

The employer appealed the decision at first instance, alleging that there had been a violation of his procedural guarantees, since an audio-visual recording of a conversation with the dismissed employee had been obtained without the employer’s consent and was admitted as evidence.

The HCJM based its decision on the constitutional doctrine set out, among others, in the Decision of the Constitutional Court 12/2012 of 30 January on the use of “hidden cameras” in journalism. It was stated that it is neither necessary nor appropriate to resort to the recording and reproduction of the image of the party concerned without their consent in order to obtain information when other means are available to obtain the same information which are less detrimental to the party’s fundamental right to privacy.

Expanding on to the above reasoning, the HCJM held the evidence based on an audio-visual recording to be illegal, since there were no facts to justify the need for such evidence. Nevertheless, the HCJM held that the judge at first instance took into account several forms of evidence before declaring the claimant’s dismissal unfair. This prevented the declaration of nullity of the appealed decision.

Notwithstanding this, in appeal 4966/2012, the HCJM found that evidence consisting of an audio-visual recording stored on a DVD was legal, since it did not constitute a violation of the fundamental rights to privacy and secrecy of communications. In this regard, the HCJM made a comprehensive analysis of the doctrine of the Decision of the Constitutional Court 186/2000 of 10 July in relation to the proportionality test that must be satisfied by any measure which restricts fundamental rights.

The HCJM went on to state that the method the employee used to obtain the evidence was proportional and that it respected the fundamental rights at stake. The HCJM held that the company had concealed its relationship with the dismissed employee and that this fact justified the use of a hidden camera, given that it was the only means to prove the existence of the employment relationship.

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4. groups of companies and the enforcement of JUDGMENTS

Judgment of the High Court of Justice of Madrid dated 15 October 2012

In this case, the High Court of Justice of Madrid (“HCJM”) analysed whether all the entities forming part of a group of companies for labour proposes were liable for the severance payments of six employees. The employees had requested the enforcement of an unappealable judgment declaring the unfairness of their dismissal.

The labour courts of first instance rejected the enforcement of the judgment on the grounds that two of the group’s companies had entered into an arrangement with creditors. The employees appealed the decision, which was rejected.

As a consequence, the employees lodged an appeal before the HCJM. The HCJM considered that the judgment against a group of companies for labour purposes implied that all the companies forming part of the group would be jointly and severally liable for the obligations deriving from the judgment. The HCJM therefore held that two companies of the group which had entered into an arrangement with creditors did not impede the unappealable judgment from being enforced against those companies that were not subject to the creditors’ arrangement, as any act to the contrary would imply disregarding the judgment.

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5. express prohibition of the personal use of IT RESOURCES

Judgment of the High Court of Justice of Madrid dated 29 October 2012

In a case heard by the High Court of Justice of Madrid (“HCJM”), an employee was dismissed for disciplinary reasons in October 2011 after committing a very serious breach of contract. A computer audit revealed that the employee had used a company computer for personal purposes during the ten months prior to his dismissal.

The employer established an internal code of conduct in May 2007 which stipulated that the Internet was only to be used for professional purposes and that its use for personal purposes was prohibited. Moreover, in October 2008 the Company reminded all employees about the existence of the code.

The HCJM explained the Supreme Court’s doctrine in its decisions of 21 September 2007 and 6 October 2011 on absolute prohibitions of using an employer’s IT resources for personal purposes. The HCJM found there to be no evidence of the company tolerating the personal use of its computers after the code of conduct forbidding personal use was introduced. It considered that the employer could not be expected to carry out regular checks or remind employees from time to time of the existence of the internal code. Furthermore, the employer could not be expected to have already imposed sanctions as a consequence of the breach of the code.

Finally, the HCJM considered that since the employee did not allege that his fundamental rights had been violated, the case had to be treated as an ordinary dismissal. The HCJM held that the dismissal was fair because the employee’s use of the company’s IT resources for private purposes had been repeated and even excessive, and therefore constituted a very serious infringement and a breach of contractual good faith. In this specific case the applicable collective bargaining agreement did not refer to this type of behaviour on the scale of very serious infringements, although it did set out a list of disciplinary measures the employer could adopt.
 

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