labour force adjustment plan

Lawyers for Labour Force Adjustment Plan (ERE)

A Labour Force Adjustment Plan (ERE) is a special labour-administrative procedure aimed at obtaining from the corresponding and competent Labour Authority, authorization to reduce working hours, extinguish or suspend the labor relations of certain workers when certain causes, legally assessed in the law, concur, thus guaranteeing the rights of workers.

The ERE is also called collective dismissal, regulated in Article 51 of the “Estatuto de los Trabajadores”. The collective dismissal means the extinction of the existing labour relationship between the company and a number of workers. Companies may carry out an ERE provided that the termination of contracts is justified by the existence of one of these causes:

  • Economic. When the company’s results show a negative economic situation, such as current or expected losses, and/or a persistent decrease in the level of income or sales. The decrease is understood to be persistent if, for three consecutive quarters, the level of ordinary income or sales in each quarter is lower than that recorded in the same quarter of the previous year.
  • Technical. When there is, in a proven way, a surplus of labour after processes of equipment renewal.
  • Organizational. When they refer to changes in systems and working methods of staff or in the way production is organised.
  • Production. When changes occur, among others, in the demand for products or services that the company intends to place on the market.

The procedure to be followed to carry out an ERE in accordance with the requirements set forth by law is as follows:

  • Consultation period.
  • Application for authorization by the competent authority.
  • Adoption of the agreement.

LETSLAW’s labour law team has lawyers who are experts in the applicable regulations and the processing of redundancy proceedings, and in this respect we can assist both companies and individuals in the following matters:

  • Preparation of legal reports on the viability and compliance with the requirements for initiating an ERE.
  • Advice on the previous steps and actions required to start an ERE in a company.
  • Advice, representation and negotiation during the consultation period with the workers’ representatives.
  • Management and advice during the whole ERE procedure, including its call.