DA LEGALS
Corporate legal advice

Corporate employment law

The workforce, from hiring to exit

The workforce is usually a company’s largest fixed cost and its main source of contingent liability. Most claims that end up before the Employment Tribunal (Juzgado de lo Social) originate months earlier, in a badly fitted contract, a salary supplement that became consolidated without anyone intending it, or a dismissal letter drafted in a hurry.

We work in both directions: structuring the employment relationship in advance, and defending it once there is a dispute, whether before the Labour Inspectorate or before the court.

What we review

Hiring and pay policy

The type of contract applicable to each post, classification under the collective agreement, the structure of fixed and variable pay, and which items become a consolidated entitlement if they are repeated over time.

Individual and collective dismissals

Classification of the ground, calculation of the compensation, drafting of the letter and preparation of the evidence. In collective dismissals, the consultation period and the documentation that has to be provided.

Labour Inspectorate

Assistance during the inspection visit, submissions against the inspection report, and administrative appeal. The reply to a formal request shapes everything that follows, and the deadline is short.

Collective bargaining

The applicable collective agreement, negotiating a company-level agreement, and dealings with the employee representatives.

Senior executives and non-competition

The special employment relationship of senior management, severance protection clauses, retention agreements and post-contractual non-competition covenants, which are only valid if adequately compensated.

Working-time records

The recording system, irregular distribution of working hours, overtime, and remote working, which requires a written agreement with prescribed content.

When a consultation is worthwhile

Specific situations in which a short conversation before deciding avoids, in most cases, later proceedings.

  • You are hiring for the first time, or taking someone on under different terms from the rest.
  • An employee has filed a conciliation application or a court claim.
  • You have received a summons or a formal request from the Labour Inspectorate.
  • You are considering a dismissal and want to know the cost and the risk before communicating it.
  • You are bringing in an executive and need to settle their severance protection and non-competition terms.
  • A payment you had been making voluntarily has become customary.

Frequently asked questions

Is a working-time record mandatory, and how long must it be kept?+

Yes. The company must ensure a daily record of working time showing the exact start and finish time of each worker. It is organised by collective agreement, by company agreement or, failing that, by the employer’s decision after consulting the workers’ legal representatives. Records are kept for four years and must be available to the workers, their representatives and the Labour Inspectorate.

What does an objective dismissal cost, and what formalities apply?+

Severance is twenty days’ salary per year of service, capped at twelve months. It must be made available to the worker when the written notice is delivered, and the notice must state the cause; fifteen days’ prior notice is also required. If the cause is economic and there is no cash to pay, the employer may defer payment by saying so in the letter, without prejudice to the worker’s right to demand it. An objective dismissal is challenged like a disciplinary one: if the cause is not proved, it is unfair.

What happens if a court declares a dismissal unfair?+

Within five days of notification of the judgment, the employer chooses between reinstating the worker or paying thirty-three days’ salary per year of service, capped at twenty-four months. If it reinstates, it must also pay the interim wages. If it chooses neither, it is deemed to have chosen reinstatement. For a workers’ representative, the choice always belongs to the representative.

How many dismissals make it a collective dismissal?+

It depends on headcount, and dismissals for economic, technical, organisational or production reasons are counted over a ninety-day period: ten workers in companies with fewer than a hundred, ten per cent of the workforce in those with a hundred to three hundred, and thirty in those with more than three hundred. If the threshold is reached the collective procedure must be followed, with its consultation period, so it is worth calculating before the first dismissal is communicated.

Can I impose a non-compete covenant on a worker who leaves?+

Only if two requirements are met: the company must have a genuine industrial or commercial interest to protect, and the worker must receive adequate financial compensation. The maximum duration is two years for technical staff and six months for other workers. A covenant without compensation, or longer than allowed, is not valid.

Can I oblige a worker I have trained to stay?+

It can be agreed, but the law limits it: the worker must have received professional specialisation at the company’s expense to launch specific projects or carry out specific work, the covenant cannot exceed two years and it must be in writing. If the worker leaves early, the company is entitled to damages.

Fees and conduct of the matter

Fees are assessed case by case. Before any work begins you receive a written engagement letter setting out its scope and the corresponding fees.

Your matter is handled by the best professional in our team for your case, a lawyer registered with the Valencia Bar Association (ICAV). You deal directly with the lawyer handling the file.

Everything you tell us is covered by the duty of legal professional privilege under article 542.3 of the Spanish Judiciary Act (Ley Orgánica del Poder Judicial), including at the first consultation and even if you do not go on to instruct us.

Let us talk about your specific case

Tell us your situation and we will explain how we would approach it and what documentation is required. We reply within 24 working hours.