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THE ERE IN BANKRUPTCY PROCEEDINGS: KEY TO RESTRUCTURING AND BUSINESS SURVIVAL
Por Diego Ricardo Molinari Chiarappa / 05 de junio de 2025
💡 MCHM Lawyers - Lawyers - Bankruptcy Law 📎 The ERE in Bankruptcy Proceedings: Key to Restructuring and Business Survival 🏠 https://www.mchmabogados.es/idiomas/en/ 🔗 https://www.mchmabogados.es/idiomas/en/abogados-derecho-concursal-almeria ⚖️ lawyers in almeria 📞 950 106 453 / 674 21 65 59 📧 info@mchmabogados.es 👉 The ERE in Bankruptcy Proceedings: A Strategic Tool for Business Restructuring 💬In the complex framework of Spanish labor and commercial law, the Employment Regulation File (ERE) within the context of a bankruptcy proceeding appears as a key tool for restructuring companies in crisis. Far from being a mechanism exclusively aimed at contract termination, the ERE in bankruptcy can become a path to the viability and continuity of the business project. ✍️ What is an ERE and how is it related to bankruptcy proceedings? An ERE is an administrative procedure that allows a company to adopt collective measures affecting its workforce, such as suspension of contracts, reduction of working hours, or termination of employment relationships, when justified economic, technical, organizational, productive, or force majeure causes exist. Bankruptcy proceedings, on the other hand, is a judicial process initiated when a company cannot meet its payment obligations. Its objective is to order payment to creditors and, as far as possible, preserve business activity. Both procedures can coexist and, in fact, Spanish legislation allows a company under bankruptcy to process an ERE, either to reduce labor costs, facilitate the sale of productive units, or prepare an orderly liquidation. Requirements to process an ERE in bankruptcy proceedings When a company enters bankruptcy proceedings, the procedure to process an ERE is modified compared to the general regime. In this context, the Bankruptcy Administrator assumes a leading role, and the following requirements must be met: 1. Declaration of bankruptcy: The company must be formally in bankruptcy, whether voluntary or mandatory. 2. Intervention of the Bankruptcy Administrator: This professional must request the ERE before the labor authority, with prior authorization from the bankruptcy judge. 3. Justification of causes: Economic, technical, organizational, or production causes that motivate the ERE must be accredited, although in the bankruptcy context these are usually implicit in the insolvency situation. 4. Report from the bankruptcy judge: Although prior judicial authorization is not required, the judge must be informed and may intervene if fundamental rights are violated or the viability of the bankruptcy process is compromised. Processing the ERE in bankruptcy proceedings The procedure develops in several phases: 1. Communication to the labor authority The Bankruptcy Administrator submits the ERE request to the competent labor authority, accompanied by supporting documentation and the social plan, if applicable. 2. Consultation period A consultation period is opened with the workers´ legal representatives, which may last up to 15 days. During this process, the ERE conditions are negotiated, including possible severance payments, relocations, or social support measures. 3. Labor authority resolution After the consultation period, the labor authority issues a resolution that may authorize or deny the ERE. In cases of force majeure EREs, this authority must verify the existence of such cause. 4. Execution of the ERE Once authorized, the ERE is executed according to the agreed or imposed terms. In cases of termination, severance payments are made, which may be assumed by the Wage Guarantee Fund (FOGASA) if the company cannot meet them. Advantages of the ERE in bankruptcy proceedings Applying an ERE within bankruptcy proceedings can offer multiple benefits: • Reduction of labor costs, which improves the viability of the restructuring plan. • Facilitates the sale of productive units without excessive labor burdens. • Allows orderly liquidation, protecting workers´ and creditors´ rights. • Speeds up decision making, by centralizing the procedure in the Bankruptcy Administrator. Final considerations The ERE in bankruptcy should not be understood as an exclusively destructive measure. Well managed, it can be a strategic tool to save companies, protect viable jobs, and maximize value for creditors. However, its processing requires deep knowledge of the legal framework and effective coordination between the company, the Bankruptcy Administrator, workers´ representatives, and the labor authority. In an uncertain economic environment, having specialized advice and acting with foresight can make the difference between disappearance and transformation of a company. ✨ ⚖️ Welcome to the Online Commercial Process offered by MCHM Lawyers. Through our online platform, we offer you the convenience of completing the entire procedure from the comfort of your home, without needing to visit our office or the courts (except for mandatory procedures). Next, we will 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 one. From your personal account, you will have access to all the necessary tools to complete the Commercial process. Document Upload: From your personal account, you can upload all documents necessary to start the Commercial process (this includes relevant documents for your case). Notifications and Requests Reception: Once you upload your documents, you will receive notifications and requests through your personal account on our online platform. These notifications will include information about your case status, any required actions, and important communications related to your Commercial process. Process Tracking: From your personal account, you can track the progress of your case in real time. This includes information on hearings, court rulings, and other relevant updates. Communication with Your Lawyer: Through our online platform, you can communicate directly with your assigned lawyer. You can ask questions, make inquiries, and receive personalized legal advice at any time during the process. Receipt of 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 regarding your Commercial case. In summary, our Online Commercial Process offers you the convenience and flexibility to complete the entire procedure from the comfort of your home, without needing 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. ✍️ ⚓️ ERE, bankruptcy proceedings, labor restructuring, bankruptcy administrator, collective dismissal, business viability, financial crisis, viability plan, workforce reduction, labor rights, labor authority, bankruptcy procedure, collective bargaining, job protection, productive unit, orderly liquidation, legal advice, business strategy, insolvency, business reorganization
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⚖️ Nota: Esta información no constituye asesoramiento legal y no debe interpretarse como tal. Se recomienda consultar con MCHM abogados, especialistas en la materia, para obtener asesoramiento específico sobre su caso.
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