Employment Law: Contract Modifications, Suspensions, and Terminations
GEOGRAPHICAL RELOCATION
1.2. MOBILITY
Worker relocation, permanently or temporarily, requiring a change of residence, must be justified on technical, organizational, economic, or productivity grounds.
A. DEFINITION
Relocation for more than 3 months within 3 years or a permanent change of residence. It can be:
- INDIVIDUAL: Requires 30 days’ notice. Rights include: acceptance with paid expenses (including family), contract termination with 20 days/year compensation, or legal challenge for unjustified relocation, potentially leading to reinstatement at the origin center and compensation for unfair dismissal.
- COLLECTIVE: Affects a group. Requires prior consultation with employee representatives and at least 30 days’ notice.
B. TEMPORARY
Temporary workplace change to a different location than the usual residence, for a maximum of 12 months within 3 years. Rights include:
- Maintaining the same job category and salary.
- Covered travel and living expenses.
- 4 days’ home stay every 3 months.
- For periods exceeding 3 months, 5 days’ notice is required.
1.3. MODIFICATIONS TO SUBSTANTIAL WORK CONDITIONS
The company may agree to modifications when there are proven economic, technical, organizational, or production reasons that justify them. These modifications affect the working day, hours, shifts, compensation method, work systems, performance, and characteristics, exceeding the limits of functional mobility.
A. INDIVIDUAL
Communicated 30 days in advance. Options include:
- Acceptance.
- Challenge through the Social Court.
- Contract termination with 20 days/year compensation, up to 9 months’ salary.
B. COLLECTIVE
Preceded by a consultation period of at least 15 days. The final decision will be communicated with 30 days’ notice, allowing for collective or individual claims.
2. SUSPENSION OF THE WORK CONTRACT
Temporary interruption of work without terminating the contract between the company and the worker. Primary obligations are paused, and the employee is entitled to return to their job under the same conditions.
3. TERMINATION OF THE WORK CONTRACT
Termination of the employment relationship between the company and the worker, permanently ending obligations for both parties. Requires advance communication and presentation of a settlement (proposed settlement of amounts due). Once signed, the contract is fully extinguished.
3.1. BY MUTUAL AGREEMENT
- Mutual agreement: Request for termination by the worker and acceptance by the employer. The employee is not entitled to compensation or unemployment benefits.
- Expiry of agreed time or completion of work/service: For contracts exceeding one year, 15 days’ notice is required unless otherwise specified in the agreement.
- Valid causes stipulated in the contract: Unless they constitute abuse by the employer.
3.2. TERMINATION AT THE EMPLOYEE’S WILL
- Resignation: No valid reason required. Notice as per the contract is expected; absence may affect the settlement. No entitlement to compensation or unemployment benefits.
- Abandonment: Quitting without notice. The employer may claim damages.
- Termination for cause: Claiming breach of contract by the employer. Causes include: changes in working conditions detrimental to the employee’s well-being or dignity, non-payment or delays, serious breach by the employer (except force majeure), unjustified refusal to reinstate the employee. Requires filing for termination with the Social Court. Compensation of 45 days/year worked, up to 42 months, may be awarded.
3.3. TERMINATION AT THE EMPLOYER’S WILL
A. COLLECTIVE DISMISSAL
Based on economic, technical, organizational, or production reasons due to force majeure preventing continued employment. Requires authorization from the competent authority, accompanied by a report justifying the grounds and a viability plan. Companies with fewer than 50 workers have 15 days for this process. Two types exist: with and without agreement. Reports must be submitted to the Labour Inspectorate and Social Security.
B. OBJECTIVE DISMISSAL
- Ineptitude: Discovered after placement in the company.
- Lack of adaptation: Due to technical modifications in the workplace, considered reasonable, after two months. Requires up to three months if the company offers training for adaptation.
- Job depreciation: For economic, technical, organizational, or production reasons.
- Absences: Unexcused, intermittent absences reaching 20% in two consecutive months or 25% in four non-consecutive months within 12 months. Strikes, legal representation, accidents, maternity/paternity leave, vacations, and sick leave exceeding 20 consecutive days are excluded.
- Inadequate budget: When allocated funds are exhausted before project completion.
REQUIREMENTS: Written communication, 20 days/year allowance, 30 days’ notice, 6 hours/week permit to seek new employment, and the possibility of disciplinary layoff.
C. DISCIPLINARY DISMISSAL
Due to serious and culpable misconduct by the worker.
3.4. TERMINATION DUE TO OTHER CAUSES
- Death, retirement, or incapacity of the employer: Requires payment equivalent to one month’s salary.
- Victim of domestic violence: Requires a protection order from the Court or a Prosecutor’s report.
- Termination of the company’s legal personality: In cases of company dissolution. Contract termination follows the extinction procedure, and the employee is entitled to a 20 days/year allowance, up to 12 months.
3.5. DISMISSAL APPEAL
If the employee disagrees with the dismissal grounds, they can attempt conciliation within 20 days.
A. CONCILIATION ACT
Aims to reach an agreement within 15 days. Concludes due to:
- Failure to reach an agreement.
- Successful agreement.
B. REFERRAL TO THE SOCIAL COURT
If conciliation fails, the worker must file an application with the Labour Court within 20 days, providing the conciliation report. The period is suspended for a maximum of 15 days from report submission until the hearing. Failure to act within the timeframe forfeits the right to take action.
C. JUDGMENT
The Court’s decision on the matter.