January 2006

NEWSLETTER


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



LABOUR LAW

 


Foreign employees. Contingent for 2006 of non-EU foreign workers in Spain

Resolution of the Secretary of State for Immigration and Emigration, dated 30 December 2005, which will govern the situation of non-EU workers in Spain in 2006. (More information)

Spanish Public Service of Employment. List of positions which are difficult to fill during the first quarter of 2006

Resolution of the Spanish Public Service of Employment dated 22 December 2005, announced the positions which will be difficult to fill during the first quarter of 2006. (More information)

Social Security. Development of the Contribution Provisions

Order TAS/29/2006 of 18 January, establishes the rules for contributing to the Social Security, Unemployment, Guaranteed Salary Fund and Training, which were set forth in Law 30/1995 of 29 December, on the Budget for 2006. (More information)

Social Security. EU Legislation

Report issued by the European Economic and Social Committee on the Proposal for Regulation of the European Parliament and the Council, amending EU Regulation 1408/71 of the Council on the application of Social Security regimes to employees, self-employed persons and their families moving within the EU. (More information)

Breach of Trade Union Freedom. Change of position and control of the time allocated to carry out trade union activities. Economic loss due to the performance of trade union activities

Decision 326/2005 of 12 December 2005 passed by the Second Chamber of the Spanish Constitutional Court partially admitted the appeal for constitutional protection raised by an employee who stopped receiving a supplementary pay linked to his position because he was appointed an “employee representative” by Comisiones Obreras (one of the two main Spanish trade unions). (More information)

Holiday and Maternity Leave

The decision of the Fourth Chamber of the Spanish Supreme Court dated 10 November 2005 expressly acknowledged an employee’s right to 31 days’ paid holiday in the same calendar year after her maternity leave. (More information)


Foreign employees. Contingent for 2006 of non-EU foreign employees working in Spain in 2006

Resolution of the Secretary of State for Immigration and Emigration, dated 30 December 2005, State Official Gazette of 17 January 2006.

This Resolution sets out the publication of the Council of Ministers Agreement that establishes the contingent for non-EU foreign workers in Spain for 2006, taking into account the situation employment in Spain. The Resolution will only be applicable to those who do not reside or who are not in Spain at the time. The expected contingent of workers to be given stable jobs amounts to 16,878.

Among the novelties of this contingent for 2006, it is worth noting that whilst the Resolution is in force it will be possible to amend the proposed number of workers, as well as the one-month term established for the relevant authorisation to be processed.

The Resolution also regulates job-seeking visas for children and grandchildren with a parent having Spanish origin, stable job offers for foreign employees and the number of job-seeking visas -limited to certain business and professional sectors -.

With regard to generic or collective job offers, provincial business organizations -or the companies themselves- will, have the legal representation and can request to manage job offers addressed to foreign employees who do not reside or who are not in Spain.

Spanish Public Service of Employment. List of positions which are difficult to fill during the first quarter of 2006

Resolution of the Spanish Public Service of Employment dated 22 December 2005, made public the positions that will be difficult to fill during the first quarter of 2006. State Official Gazette of 24 January 2006.

This list contains the positions which are most difficult to fill for the Spanish Public Service of Employment when it comes to job offers by employers that need to cover a vacant position. In addition, it enables the employers to order the work and residence authorisations for foreign employees to be processed in the event that the job vacancies include positions which are on the list.

Social Security. Development of the Contribution Provisions

Order TAS/29/2006 of 18 January, establishes the rules for contributing to the Social Security, Unemployment, Guaranteed Salary Fund, and Training, that were set forth in Law 30/1995 of 29 December on the Budget for 2006. State Official Gazette of 20 January 2006.

This Order sets forth -with regard to the Social Security General Regime- the rules to determine the salary basis for social security contributions, the maximum and minimum limits and bases as well as the contribution base in circumstances of temporary disability risks during pregnancy and maternity, amongst others.

The Order establishes the bases and contribution rates of the special regimes for farmers, self-employed persons and sea workers, as well as the bases and contribution rates for Unemployment, Guaranteed Salary Fund and Training.

Moreover, it also covers part-time contracts and training contracts and the minimum contribution base in the event that the minimum salary varies.

Social Security. EU Legislation

Report from the European Economic and Social Committee on the Proposal for the Regulation of the European Parliament and Council, amending EU Regulation 1408/71 of the Council, which dealt with the application of Social Security regimes to employees, self-employed persons and their families moving within the EU and Council Regulation 574/72 that established the application of Regulation 1408/71. European Community Official Gazette of 31 December 2005.

In order to adapt the Regulations to the legislative developments within the Member States and to the recent rulings of the European Court of Justice, the amendments contained in this Report tended to simplify the text and to reduce the administrative proceedings currently required in the event of medical assistance due to work related injuries or illnesses in a different Member State, whilst applying the same simplified processes, as set forth by Regulation 631/2004, to receive general medical assistance.

The report also emphasized the fact that the Proposal for Regulation made by the European Parliament and Council, improves and simplifies the processes, for the harmonization of the Social Security systems within the European Union, and reinforces the free movement of workers.

Breach of Trade Union Freedom. Change of employment position and control of the time allocated to carry out trade union activities. Economic loss due to the performance of trade union activities

Decision 326/2005 of 12 December 2005 passed by the Second Chamber of the Spanish Constitutional Court.

In this case, the chief of the environmental inspectorate of a City Council stopped receiving the supplement pay linked to his job, when he was appointed an “employee representative”. In addition, his reporting obligations changed, as he was required to provide notice and receive authorization before making use of “trade union hours”.

The Constitutional Court held that the only claim which is subject to constitutional protection is the removal of the supplement paid by the City Council due to the employee’s appointment as an “employee representative”.

In this regard, the Court stated that an “employee representative” suffers an economic loss when he is paid less for rendering the same services as before, since this negatively affects the effectiveness of trade union freedom by potentially deterring the employees from carrying out their trade union functions.

The Decision also pointed out that such an obstacle affects not only the union representative -who suffers the economic loss-, but also the corresponding union organization, insofar as this measure affects the protection and promotion of the worker’s rights and interests which are assigned to trade unions under the Spanish Constitution.

Holiday and Maternity Leave

Ruling of the Fourth Camber of the Spanish Supreme Court dated 10 November 2005.

The decision of the Fourth Chamber of the Spanish Supreme Court dated 10 November 2005 expressly acknowledged an employee’s right to 31 days’ paid holiday in the calendar year following her maternity leave.

The employee became temporarily disabled as a consequence of a common illness contracted whilst being pregnant. After giving birth, she benefited from the corresponding maternity leave.

Upon conclusion of said leave, the month established as holiday by the company -August- had passed, and the company refused to allow her to compensate for the lost holiday at a different time, which led to the employee filing a judicial claim the following year.

In view of recent case law passed by the European Court of Justice -which also interprets Directive 76/207, the Supreme Court held that the legal provision should be construed as entitling the employee to benefit from her annual holiday leave at a different time of the year than the maternity leave. Therefore, the Supreme Court held that in the event that both periods coincide, the employee will be entitled to enjoy her annual holiday leave at a different time of the year.

 


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