Spanish Business Law: Employment, Obligations, and Contracts

Lecture 4: Employment Law

Collective Agreements and Worker’s Statute

This lecture covers collective agreements between unions and employers, outlining minimal rights and obligations as per the Worker’s Statute. Key topics include minimum content, risk prevention, joint trade unions, and social security protection.

Working Contracts and Employment Relationships

We delve into working contracts, agreements where workers provide services to employers for payment. The distinction between employment relationships (employees) and civil-mercantile relationships (self-employed) is explored.

Employment Contract Characteristics

The lecture emphasizes that only individuals under an employment contract can have employment rights. Key characteristics include:

  1. Duty to obey employer’s instructions
  2. Acting on behalf of the employer (liability for damages)
  3. Dependency on the employer

Exclusivity Clauses and Contract Types

We discuss exclusivity clauses that prevent employees from working for others after their primary job. Contract types, including written (obligatory for temporary work) and oral, are explained, along with requirements for registration and content.

Payment and Severance

The lecture covers minimum wage regulations, payment frequencies, and severance pay calculations (20 days of salary per year worked).

Self-Employed and Representation

The rights and obligations of self-employed individuals, governed by civil and mercantile law, are discussed. Contractual requirements and registration processes are explained.

Types of Representation

The lecture differentiates between legal representation (representing individuals or entities), organic representation (for legal entities requiring a physical person as administrator), and voluntary representation (direct or indirect, in civil or mercantile spheres).

Lecture 5: Obligations and Contracts

Sources of Obligations

This lecture explores the concept of obligations, which create debts and liability. The main sources of obligations are contracts (private law), unlawful damage (compensation for financial damage), and the law (must be clear and unambiguous).

Monetary Obligations and Payment

We focus on pecuniary obligations involving the delivery of money. Payment methods, stabilization clauses (to maintain exchange value), and debt interest rates are discussed.

How Obligations Work

Payment and Discharge

The lecture outlines the three requirements for valid payment: coincidence of payment with the due obligation, full payment, and undivided payment.

Breach of Obligations

We examine different modes of breach, including refusal to pay, defective compliance, and delay in payment. Causes of breach, such as willful misconduct, negligence, and force majeure, are explored.

Liability and Enforcement

The lecture discusses liability for failure to comply with obligations, emphasizing the creditor’s role in protecting the loan and assessing the debtor’s creditworthiness. Enforcement mechanisms, including individual (monetary and non-monetary debts) and collective (bankruptcy and insolvency), are explained.

Businessperson’s Civil Liability

We delve into the concept of civil liability as a guarantee on assets, where the debtor must respond with present and future assets in case of failure to comply.

Types of Liability

The lecture differentiates between contractual liability (quasi-objective, focusing on willful misconduct) and extra-contractual liability (based on guilt/negligence, risk theory, or objective causes of damage).

Assets Subject to Liability

We discuss the possibility for individual businesspersons to limit their liability through the “entrepreneur with limited liability” status.

Contracts and Regulations

The lecture explores contracts as instruments of economic exchange and sources of obligations. Key regulations include:

  1. Trade procurement regulations (limited provisions in the Commercial Code)
  2. Common rules on civil contracts (fundamental rules in the Civil Code)
  3. Law on the protection of consumers

Special Cases: General Conditions and Clauses

We examine general conditions of contract clauses, pre-established terms used by companies. The importance of clarity, simplicity, and good faith (non-abusive clauses) is emphasized.