Amazon ERE Spain: Profitability and Employee Rights
- Okay, here's a breakdown of when and why a company can carry out an ERE (Expediente de Regulación de Empleo - a collective dismissal procedure) in Spain, based...
- A company must follow the ERE procedure (rather of individual dismissals) if any of these conditions are met:
- * Small Companies (under 100 employees): Dismissing 10 or more employees.
Okay, here’s a breakdown of when and why a company can carry out an ERE (Expediente de Regulación de Empleo – a collective dismissal procedure) in Spain, based on the provided text. I’ll organize it into clear sections:
1. When is an ERE Required? (Thresholds)
A company must follow the ERE procedure (rather of individual dismissals) if any of these conditions are met:
* Small Companies (under 100 employees): Dismissing 10 or more employees.
* Medium Companies (100-300 employees): Dismissals affect at least 10% of the workforce.
* Large Companies (over 300 employees): Dismissing 30 or more employees.
2. Reasons/Causes for an ERE
A company can justify an ERE based on one or more of these four causes:
* Economic Reasons:
* Current or anticipated losses.
* A persistent decline in revenue or sales. (Specifically, three consecutive quarters of lower ordinary income/sales compared to the same quarter of the previous year).It’s crucial to note a company doesn’t need to be *currently losing money to use this reason, just demonstrate a sustained decline.*
* Technical Reasons: Changes in production methods, tools, or instruments.
* Organizational Reasons: Changes in work systems, methods, or how production is organized.
* Productive Reasons: Changes in the demand for the company’s products or services.
3. The ERE Procedure (Steps)
- Notification: The employer must in writing notify the relevant labor authority (regional or state,depending on the scope of the layoffs) about the start of the ERE procedure. This notification includes:
* The reasons for the ERE.
* The number and categories of employees affected.
* The criteria used to select employees for dismissal.
* Supporting documentation.
- Consultation Period: A consultation period wiht workers’ representatives begins.This lasts:
* Up to 30 days (for companies with 50 or more employees).
* Up to 15 days (for companies with fewer than 50 employees).
- Negotiation: During the consultation, the company and workers’ representatives must try to:
* Find alternatives to avoid or reduce the number of layoffs.
* Agree on measures to help affected workers find new employment.
- Authority Review: The labor authority (regional or state) reviews the ERE and may request a report from Labor Inspection. They can also offer mediation.
- Outcome & Decision: The consultation period ends with or without an agreement. The employer must report the outcome. If the employer doesn’t communicate a final decision within 15 days after the consultation period ends, the ERE procedure expires.
Let me know if you’d like any part of this explained in more detail!