In the current economic climate Spanish employers will welcome a recent decision of the Spanish Supreme Court in Fundiciones Ocariz, SA and Akozem, SL v Angel.
The claimant was one of eight employees dismissed in response to his employer’s financial difficulties. The dismissals were initially held to be unfair as the Courts held that the dismissals would not make any difference to the company’s profitability. The Supreme Court has however now held that as a general rule, provided an employer can demonstrate it is in serious financial difficulties (the employer in question had made losses of €5 million in the last four years), then provided it follows a fair procedure any dismissals will be fair. It is not the role of the Courts to investigate whether the dismissals would actually contribute to the future viability of the company said the Court.