February 2006

NEWSLETTER


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



LABOUR LAW

 


Unemployment. Simplification of the steps to obtain the unemployment benefit

Royal Decree 200/2006, of February 17, updates and simplifies the steps to be taken before the Administration to obtain unemployment benefit. (More information)

Non-profit entities that collaborate with the National Employment Service. Subsidies

Resolution of January 26, 2006 updates for the year 2006, the maximum amount of the subsidies available to non-profit entities that run career guidance and self-employment programs. (More information)

Dismissal. Nullity. Discrimination on grounds of the employee’s sexual orientation

The Constitutional Court, in its judgment dated February 13, 2006 accepts an appeal brought on the grounds of a violation of fundamental rights and liberties brought by an employee. The Constitutional Court declares that his dismissal was null on the grounds of the violation of his right to not be discriminated against due to his sexual orientation. (More information)

Limitation period. Writ submission. Application of the Spanish Civil Procedure Act

The Labour Section of the Supreme Court, in its judgment dated October 31, 2005 declares Article 135.1 of the Spanish Civil Procedure Act applicable to labour proceedings and, in particular, to the submission of writs. (More information)

Work Accident. Surcharge. Administrative proceedings concerning benefits surcharges need not be suspended owing to the initiation of criminal proceedings

The Labour Division of the Supreme Court, in its judgement dated October 5, 2005 declares that there is no reason to suspend benefit surcharge proceedings because criminal proceedings have been initiated in relation to the same matter. (More information)

Dismissal. Employee’s Privacy. Limit to the employer’s power to search the employee’s computer

The judgment of Labour Court no. 1 of Santander declares the dismissal of an employee unfair on the grounds that the search of his computer to find evidence of his contractual breaches had not been conducted in accordance with the law. (More information)


 

Unemployment. Simplification of the steps to obtain the unemployment benefit

Royal Decree 200/2006 of February 17, which amends Royal Decree 625/1985 of April 2l that develops Law 31/1984 of August 2 on unemployment benefits. Spanish Official Gazette of March 3, 2006

The most important developments introduced by this Royal Decree regarding unemployment benefits are the following.

A new paragraph 6 has been added to Article 1 of Royal Decree 625/1985 of April 2 (hereinafter, “RD 625/1985”), which regulates the accreditation of an individual’s status as unemployed. On the basis of the new paragraph, a communication, written notification or a certificate/letter from the employer is sufficient to evidence that an individual is unemployed. In these cases, the cause and date of effect of unemployment must be stated in the company certificate.

Article 7 of RD 625/1985 has been amended so that groups of workers who alternate between periods of employment and unemployment within a single month only have to make one application for unemployment benefit for the full period or each month.

According to the new wording of Article 10 of RD 625/1985, the entity that administers the payment of the benefit must establish a specific procedure that allows renewal applications and income tax declarations of those who receive unemployment benefits and are over the age of 52 can be submitted by post or electronic means.

Furthermore, paragraph 2 of Article 26 of RD 625/1985 has been modified so that the beneficiaries will now receive the full amount of the benefit, including that corresponding to the first 10 days of unemployment (which was previously withheld).

Non-profit entities that collaborate with the National Employment Service. Subsidies

Resolution of January 26, 2006 of the National Employment Service, which establishes the maximum subsidies for 2006 available to non-profit entities that run career guidance and self-employment programs. Spanish Official Gazette of February 15, 2006

The Order of January 20, 1998, as amended by the Order of February 4, 2000, regulates the granting of subsidies to non-profit entities that run career guidance and self-employment programs. Article 4.1 sets forth the amounts of the subsidies. The Order of February 4, 2000 introduced a new paragraph c) to article 4.1, that established that the amounts set forth in paragraphs a) and b) of this article will be updated every calendar year, in accordance with the retail price index.

The maximum amounts for which the National Employment Service will subsidise the remuneration and Social Security payments to be paid by these entities for the personnel needed to administer the programs according to the applicable law and collective bargaining agreement for 2006 will be the following:

For technical staff, the amounts established for each category, level or professional group, up to €29,321.50 per year.

For support staff, the amounts established for each category, level or professional group, up to €20,525.05 per year.

Dismissal. Nullity. Discrimination on grounds of the employee’s sexual orientation

Judgment of the Second Section of the Constitutional Court of February 13, 2006

This decision resolves an appeal brought by an employee on the grounds of a breach of his rights and liberties in response to the judgment of the Labour Division of the High Court of Catalonia of June 27, 2003, which declared his dismissal unfair by upholding the appeal against the first instance judgment declaring the dismissal null and void on discrimination grounds.

The employee states that the appealed judgment breached his fundamental right to not be discriminated against pursuant to Article 14 of the Spanish Constitution. Thus, the criteria applied by the High Court were contrary to those of the Constitutional Court as, according to the High Court, the evidence filed by the company in an attempt to disprove the employee’s claims was sufficient, even though such evidence did not actually disprove the discriminatory situation alleged by the employee.

The company responded arguing that the employee should not have filed an appeal to enforce constitutional rights (i.e. an appeal of the type filed by the employee), but rather an appeal against the High Court’s decision seeking the unification of case law. The company also challenged the appeal filed on the grounds that the claims made were not sufficient to demonstrate its decision to dismiss the employee was discriminatory.

The Constitutional Court did not accept the procedural objection raised by the company, arguing that an objection of this type cannot be made in the abstract and should be supported by legal arguments demonstrating that an appeal for the unification of case law was possible and should have been filed first.

Secondly, the Constitutional Court concludes that the employee submitted sufficient evidence to prove that there was a link between the dismissal and the employee’s sexual orientation, which the company had not been able to disprove, as acknowledged in the first instance judgment, and also indirectly, in the appealed judgment.

Thus, the company alleged contractual breaches that it could not prove, and failed to show that the real reasons for the dismissal were not based on discrimination and that the employee’s evidence was unrelated to the dismissal.

Limitation period. Writ submission. Application of the Spanish Civil Procedure Act

Judgment of the Labour Section of the Supreme Court, October 31, 2005

In this decision the Labour Section of the High Court of Andalucia (Malaga) rejected an appeal submitted by the Municipal Agency of Fuengirola as the limitation period within which to issue the appeal had prescribed.

The writ of appeal was submitted to the Labour Court the day following the end of the limitation period. It was submitted before 15:00hrs that day.

The judgment finds that the Supreme Court’s case law considers Article 135.1 of the Spanish Civil Procedure Act (hereinafter, “PCA”), which allows a writ that is subject to a limitation period to be submitted during the day following the end of the limitation period, before 15:00hrs, is applicable in labour proceedings pursuant to the first Additional Provision of the Spanish Labour Procedure Act and Article 4 of the PCA. For that reason, a writ submitted before “15:00 hrs the next working day following the last day of the end of the limitation period” is valid, including those filed in labour proceedings.

Work Accident. Surcharge. Administrative proceedings concerning benefits surcharges need not be suspended owing to the initiation of criminal proceedings

Judgment of the Labour Section of the Supreme Court of October 25, 2005

This appeal before the Supreme Court, which was filed against a judgment of the High Court of La Rioja, dealt with the question of whether administrative proceedings concerning the imposition of a surcharge on the benefits paid by a company as a result of a work accident need be suspended if criminal proceedings are initiated in relation to the same matter.

A judgment of the Labour Section of the High Court of La Rioja of July 13, 2004, declared that the administrative proceedings had been time-barred owing to the fact that the initiation of criminal proceedings does not suspend ongoing proceedings concerning the imposition of surcharges.

The General Treasury of the Social Security and the National Social Security Institute claimed that Article 16.2 of the Ministerial Order of January 18, 1996 and Article 3.2 of Royal Decree 5/2000 of August 4 had been breached.

Article 16.2 of the Ministerial Order states that where the authorities become aware of the existence of criminal proceedings concerning an employer’s liability for the failure to adopt the necessary safety measures, the corresponding administrative proceedings should be suspended, but only in relation to this aspect. The Order applies and develops Royal Decree 1300/1995 on Social Security aspects of incapacity.

However the Supreme Court considers that Royal Decree 1300/1995 does not set forth any rule that allows the suspension of the administrative proceedings concerning surcharges to be paid by employers on incapacity benefits.

Nor does the Court consider that Article 3.2 of Royal Decree 5/2000 provides grounds for suspension since it solely refers to sanction proceedings, and administrative proceedings on surcharges have a sui generis nature that is different to that of a sanction strictu sensu.

Thus, the judgment concludes that there is no reason to suspend the administrative proceedings concerning a surcharge owing to the initiation of criminal proceedings.

Dismissal. Employee’s Privacy. Limit to the employer’s power to search the employee’s computer

Judgment of Labour Court no. 1 of Santander, December 1, 2005

The claimant was dismissed for, among other reasons, committing acts of unfair competition. The court had to determine whether the company’s inspection of the employee’s computer, which was carried out without the employee in question or any other employee being present, to establish whether the employee committed acts of unfair competition, was a breach of Article 18 of the Statute of Workers (hereinafter, “SW”), and consequently, whether the evidence obtained to prove the grounds for the dismissal is null and void.

To this end, the employer’s powers established in Article 20.3 SW must be considered. In this regard, the court concluded that the surveillance and control powers of employers must be used proportionally, without causing any unjustified limitation of the fundamental rights and public freedoms of the employees. As such, the court acknowledged that the worker’s personal computer falls within the concept of “locker” as this is defined in Article 18 of the SW.

In this regard, an inspection of a “locker” can only be carried out when it is necessary to protect the company or other employees, and must be conducted in the workplace during working hours. The dignity and privacy of an employee must be respected, and his/her legal representative must attend, or failing him/her, another employee of the company, wherever possible.

Consequently, due to the fact that these requirements were not complied with when obtaining the information from the employee’s computer, such information could not be used.


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