The reform will implement a reduction of compensation for unfair dismissal from 45 to 33 days salary per year of work. Classic permanent contract disappears.  

2. MORE OF 20 DAYS DISMISSAL

The government wants to enhance 20 days dismissals and is proposing a clearer definition of causes for this type of dismissals. Mainly by economic reasons.

3.  COMPANY AGREEMENT
Enterprise agreements will be independent of sectoral agreements.  Just the agreement between n company and worker will be necessary without the need of being represented by unions. Company agreements with workers can vary the terms of the sectoral regulations. .

4. PART-TIME JOBS FOR YOUTH

 Government will become more flexible with part-time contracts, with the intention of this being used to hire young people. That will produce a cheaper dismissal. To this end also, the Executive intends to promote grants in this model and the practice and training one.

5. MORE HELP FOR THE AUTONOMOUS WORKER

In order to facilitate unemployed youth to create their own employment, in the medium term, it will be possible to receive unemployment aid all at once if the worker demonstrates that they will set up their own company.

6. FIGHTING FRAUD IN UNEMPLOYMENT

 Government will strengthen the fight against unemployment fraud in an attempt to reduce unemployment and stimulate job self-creation.

7. PRIVATE EMPLOYMENT MEDIATION

Private sector will have a stronger role relocation of unemployed people.

8. SUPPRESSION OF ADMINISTRATIVE PERMIT FOR COLLECTIVE DISMISSAL

Government is considering the elimination of administrative permission for companies to make collective redundancies. This is an old claim of the Entrepreneurs Union and one of the main demands of multinational corporations in Spain. In the EU only Greece has a similar measure. This reform may also reduce the costs of dismissal.

If we are or were legal managers of a company of limited liability in Spain (SL or SA) and decided or are deciding to close it, it is not enough to just close the door and run. We need to close and liquidate the company and, in some cases, to ask for the protection of the creditor´s meeting status.  Otherwise, all the debts of the company can be transferred and imposed against you and your assets worldwide as legal manager of said company. 

 In this state of economic difficulties, it is common that many entrepreneurs, being desperate because they cannot get on with their business, decide to close and cease trading.  It is common to be uncertain on what to do then:  Just close and liquidate?  File for bankruptcy?  Apply for inactivity status?  Do nothing?  Wait and see if we can restart activity in the future?

Costs and especially the so many administrative procedures for dissolution and liquidation or for bankruptcy application drive many managers to just leave it idle or do nothing.

This can have very unpleasant consequences.

It is true that changing the company status to inactive is a simple process: it only requires the application through the corresponding form.

But we must not forget that although the company is inactive, there remains the obligation to continue to file corporate tax and financial statements. That is, although the company has no commercial activity is still subject to some obligations with the Treasury and the Commercial Registry. To leave a company inactive, especially if it has debts, is not correct, mainly because its legal closure will not happen until this is dissolved and completely liquidated.

The final dissolution prevents a company to generate for their partners tax and commercial obligations and, most importantly it prevents managers to become liable  with their worldwide assets of the unattended corporate debts and duties.

And old, related post:

http://www.eyeonspain.com/blogs/costaluz/3701/legal-tip-297-differences-between-dissolution-of-a-company--and-creditor%C2%B4s-meeting-status.aspx

Have a great weekend!

María 

"2011 Conil de la Frontera", Cádiz, Spain, by jose_gonzalvo,at flickr.com

"2011 Conil de la Frontera", Cadiz, Spain, by jose_gonzalvo, at flickr.com

This new reform of the banking system is one of the key features, together with the budget and the labor reform, of the new government’s structural reforms programme.

The announced purpose of the Royal Decree is to strengthen the balance sheets of credit institutions to increase confidence and reliability, and to reinforce the Spanish financial system, with a view to allowing access to capital markets and restoring their main role of channeling savings into the real economy.

Main changes:

I.            The coverage requirements for certain real estate assets in the balance sheets of credit institutions as at 31 December 2011 have been increased.  In particular, the new reinforcement measures affect financings and asset foreclosures or assets received as payment of debts from the real estate sector in Spain.  

The Royal Decree provides a deadline to comply with these requirements: 31 December 2012.  However, it allows entities that undergo integration processes during 2012 to benefit from a 12-month extension from the date the transaction is authorized.   In addition, among other requirements, the total balance sheet of the resulting entity must be at least 20% (10% in exceptional circumstances) higher than the total balance of the business in Spain of the largest institution in the integration.

To benefit from the extension, the resulting institution must comply with the corporate governance rules established in Royal Decree-law 9/2009 for institutions receiving aid from the FROB.

II.          The Royal Decree also amends Law 31/1985 and Royal Decree-law 11/2010 concerning the governing bodies of savings banks to lighten their structure and make the operation of savings banks conducting business indirectly more flexible.

The most significant novelties are as follows:

(i)           the obligation that savings banks implement the same structure as that of their management bodies in the banks in which they have contributed their financial activity is removed;

(ii)               the savings banks’ discretion to make disbursements (including ordinary expenses) unrelated to the community welfare project is limited; and

(iii)             From now on, savings banks must become special foundations not only when they lose control of the bank in which they have contributed their financial activity, but also when, even though they still hold control, they have less than 25% of the voting rights in the new bank.

The Royal Decree provides that the State will supervise special foundations through the Protectorate of the Ministry of Economy and Competitiveness, provided that the main scope of action of the bank through which the financial activity is carried out covers more than one autonomous region.  This confirms the inclusion of these special foundations in the framework of the distribution of functions between the State and the autonomous regions, as provided under Law 50/2002 on foundations.

III.        The Royal Decree establishes significant restrictions to the remuneration of directors, general directors and senior executives, in institutions receiving public aid, by imposing more stringent requirements for institutions in which the FROB has a majority stake. These restrictions apply to fixed and variable remuneration, and may even affect certain pension benefits.

"Conil de la Frontera", Cádiz, Spain, by jose_gonzalvo, at flickr.com

So...is very possible that with just your deposit ( the one you have/are recovering), you will be able to buy a whole property. Is not great?

Are you coming?

Maria

"Medina Sidonia Diciembre 07", Cadiz, Spain, by Ana Asuero, at flickr.com