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💡 MCHM Lawyers - Lawyers - Bankruptcy Law 📎 Collective Dismissal in a Payment Order Procedure: Procedure and Compensation 🏠 https://www.mchmabogados.es/idiomas/en/ 🔗 https://www.mchmabogados.es/abogados-derecho-concursal-almeria ⚖️ lawyers in almeria 📞 950 106 453 / 674 21 65 59 📧 info@mchmabogados.es 👉Collective Dismissal in a Payment Order Procedure: Procedure and Compensation 💬Collective dismissal within the framework of a payment order procedure is an increasingly frequent situation in the Spanish business landscape. The complexity of this procedure, which combines elements of Labor Law and Bankruptcy Law, requires a detailed analysis from both a legal and practical perspective. In this article, we address the key aspects of the procedure, the parties involved, and the compensation consequences for affected workers. ✍️ What is a payment order procedure? The payment order procedure is a judicial process initiated when a company cannot regularly meet its payment obligations. Its purpose is to organize the company´s credits and debts, seeking its viability or, failing that, its orderly liquidation. In this context, the continuity of the business activity may require a workforce restructuring, leading to collective dismissals. 1. Applicable Legal Framework The collective dismissal procedure in companies undergoing bankruptcy is mainly regulated by: • The Consolidated Text of the Bankruptcy Law (TRLC), approved by Royal Legislative Decree 1/2020. • The Workers´ Statute (ET), especially Article 51, which establishes the requirements for collective dismissals. • The case law of the Supreme Court and the Court of Justice of the European Union, which has defined workers´ rights in these processes. Who can initiate the procedure? According to Article 171 of the TRLC, the following parties are entitled to request a collective dismissal: • The insolvent company itself. • The insolvency administration. • The legal representatives of the workers. 2. The application must be submitted to the insolvency judge, who has exclusive competence to authorize this type of dismissal during the bankruptcy procedure. Stages of the Procedure 1. Identification of the need for dismissal: The insolvency administration assesses the company´s economic and organizational situation. 2. Application to the insolvency judge: A formal request must be submitted, including justification of the economic, technical, organizational, or production-related grounds. 3. Consultation period: Although the procedure becomes judicial, a consultation period with workers´ representatives is maintained, similar to that provided in Article 51 of the ET. 4. Judicial resolution: The insolvency judge authorizes or denies the collective dismissal, assessing the legality of the procedure and the proportionality of the measure. 5. Execution of the dismissal: If authorized, the termination of the affected employment contracts proceeds. Compensation One of the most sensitive aspects of collective dismissal in bankruptcy is related to compensation. In general: • The minimum legal compensation is 20 days per year of service, with a maximum of 12 monthly payments. • Compensation payment may be covered by the Salary Guarantee Fund (FOGASA) if the company cannot assume it. • In some cases, if it is proven that the dismissal is not sufficiently justified or the procedure was not followed, it may be declared unfair, raising compensation to 33 days per year of service, with a maximum of 24 monthly payments. Particularities of Dismissal in Bankruptcy • No prior administrative authorization is required, unlike in ordinary collective dismissals, only judicial resolution. • The insolvency judge has the power to authorize dismissals even during the liquidation phase. • The insolvency administrator acts as a guarantor of balance between creditors´ interests and workers´ rights. • Labor claims arising from compensation are considered either mass claims or privileged, depending on when they arise. Conclusion Collective dismissal within the framework of a payment order procedure is a legal tool that allows companies in crisis to adjust their workforce structure to try to survive or, failing that, to liquidate in an orderly manner. However, it is a complex procedure that must strictly respect workers´ rights and follow a specific judicial path. The intervention of the insolvency judge and the insolvency administrator ensures a certain balance between business viability and social protection. ✨ ⚖️ Welcome to the Online Commercial Procedure offered by MCHM Lawyers. Through our online platform, we offer you the convenience of completing the entire process from the comfort of your home, without the need to visit our office or the courts (except for mandatory procedures). Below, we guide you through each step of the process: Access to Your Personal Account: Once you access our website https://www.mchmabogados.es/idiomas/en/inicio-sesion-mchmabogados-almeria [Commercial], you can create a personal account or log in if you already have an existing account. From your personal account, you will have access to all the necessary tools to complete the commercial procedure. Document Upload: From your personal account, you can upload all the necessary documents to start the commercial process (this includes documents relevant to your case). Receipt of Notifications and Requirements: Once you have uploaded your documents, you will receive notifications and requirements through your personal account on our online platform. These notifications will include information about your case status, any actions required on your part, and any important communications related to your commercial process. Process Tracking: From your personal account, you can track your case progress in real-time. This includes information on hearings, court rulings, and any other relevant updates. Communication with Your Lawyer: Through our online platform, you will be able to communicate directly with your assigned lawyer. You can make inquiries, ask questions, and receive personalized legal advice at any time during the process. Receiving the Judgment: Once the process is completed, you will receive the final judgment through your personal account on our online platform. This judgment will include any decision made by the court in relation to your commercial case. In summary, our Online Commercial Procedure offers you the convenience and flexibility of completing the entire process from the comfort of your home, without the need to visit our office or the courts (except for mandatory procedures). With access to your personal account on our online platform, you can upload documents, receive notifications, communicate with your lawyer, and track your case progress in real time. At MCHM Lawyers, we are committed to providing you with the best possible service throughout the commercial process. 📖 lawyers in almeria 📍 For more information, do not hesitate to contact MCHM Lawyers. ✍️ ⚓️ collective dismissal, payment order procedure, employment compensation, FOGASA, insolvency judge, insolvency administration, contract termination, labor claims, business restructuring, judicial procedure, worker rights, business crisis, payment priority, consultation period, labor protection

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