1. GENERAL STATE BUDGET
Law 3/2017 of 27 June on the General State Budget for 2017 contains several measures regarding employment and social security matters, some of which were already being applied.
2. EFFECTIVENESS OF AGREEMENTS ENDING A COLLECTIVE REDUNDANCY
An agreement ending a strike, when reached within a group of companies, can be amended through a subsequent agreement ending a collective redundancy at one of the group’s companies.
3. NULLITY OF NEW TRIAL PERIOD AFTER A TRANSFER OF UNDERTAKING
The Supreme Court has held that, when a transfer of undertakings occurs, it is not possible for the successor company to impose a new trial period on the transferred employees.
4. TAXATION OF SEVERANCE PAID AFTER A COMPANY’S WITHDRAWAL FROM A SENIOR MANAGEMENT CONTRACT
The National Court has applied the reasoning used by the Labour Chamber of the Supreme Court when it considered that the severance to be paid after a company’s withdrawal, as regulated in Royal Decree 1382/1985 of 1 August, must be considered a minimum obligatory severance and is therefore exempt from taxation.
5. SEVERANCE PAID AFTER TERMINATION OF ASSIGNMENT CONTRACTS (CONTRATOS DE PUESTA A DISPOSICIÓN)
The High Court of Justice of the Basque Country, applying the reasoning contained in the Diego Porras ruling, held that an employee was entitled to a severance payment of 20 days’ salary pay per year of service after the termination of an assignment contract entered into through a temporary employment agency.
6. NO CONFLICT BETWEEN A COMPANY’S COLLECTIVE BARGAINING AGREEMENT AND THAT PERTAINING TO THE SECTOR CONTAINING A SUBROGATION CLAUSE
The High Court of Justice of Catalonia has held that there is no conflict between a company’s collective bargaining agreement and that applicable to the sector establishing a subrogation of workforce clause given that the usual priority given to the company’s collective bargaining agreement does not apply to mandatory subrogation provisions.