Understanding Employment Contract Amendments in Spain
AMENDMENT TO EMPLOYMENT CONTRACT
Types of Modifications
A) Non-Substantial Modifications
These are minor changes that do not significantly impact the employment relationship, such as changes to the work schedule or shift patterns.
B) Substantial Modifications
These changes have a significant impact on the employment relationship, affecting aspects such as working hours, remuneration, or job duties. Justification is required, demonstrating the benefit to the company or the collective good. These modifications may be subject to collective bargaining agreements and must follow specific procedures if they affect a certain number of workers within a specific timeframe.
Modification Procedures
A) Individual Modifications
The employer must provide the worker with 30 days’ notice and justification for the proposed changes. The worker can accept or reject the modification. If the change affects working hours or regime and the worker rejects it, they are entitled to compensation of 20 days’ salary per year of service, up to a maximum of 9 months’ salary. If the modification is detrimental to the worker’s training or dignity, it may be considered unfair dismissal, with compensation of 45 days per year of service, up to a maximum of 42 months’ salary.
B) Collective Modifications
A consultation period of 15 days is required with worker representatives. If no agreement is reached, the employer must provide 80 days’ notice of the changes. The consequences of accepting or rejecting the modifications are the same as for individual modifications.
C) Functional Mobility
This involves changes to the worker’s job functions. There are three types:
- Within the same professional group: No justification is required, and the worker’s salary remains the same.
- Functions of a higher category: The worker will receive the salary corresponding to the new function. If performed for a certain period, the worker may request a promotion.
- Functions of a lower category: This is only permitted in urgent or unforeseen circumstances and for a limited time. The worker maintains their original salary during this period.
D) Geographical Mobility
This involves transferring the worker to a different location, which may be permanent (transfer) or temporary (displacement).
1) Transfer
The company must provide 30 days’ notice. If it affects a group of workers, a 15-day consultation period is required. The company covers all relocation expenses. If the worker does not accept the transfer, they can leave the company with compensation of 20 days per year of service, up to a maximum of 12 months’ salary. They can also appeal to the labor court.
2) Displacement
This is temporary, with a maximum duration of 12 months within a 3-year period. The worker is entitled to daily allowances, travel expenses, and permission to return home every 3 months at the company’s expense.
TERMINATION OF CONTRACT
1) Agreement of the Parties
Both the employer and employee mutually agree to end the contract.
2) Voluntary Resignation
The employee chooses to leave the company due to serious breaches of the employer’s obligations, such as unpaid wages, modifications affecting their training or dignity, or harassment. The worker may be entitled to compensation of 45 days per year of service, up to a maximum of 42 months’ salary.
3) Objective Dismissal
The dismissal is based on reasons such as the worker’s inability to adapt to technological changes, lack of required qualifications, excessive absences, or economic reasons. The worker is entitled to compensation of 20 days per year of service, up to a maximum of 12 months’ salary. They can appeal to the labor court if they disagree with the dismissal.
Disciplinary Dismissal
This occurs due to serious misconduct by the employee, such as repeated absences, disobedience, or substance abuse. The worker can appeal to the labor court. The dismissal may be deemed:
- Void: If proper procedures were not followed.
- Unfair: The worker is entitled to compensation of 45 days per year of service, up to a maximum of 42 months’ salary.
- Procedurally correct: The worker is not entitled to compensation.