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💡 MCHM Lawyers - Lawyers - Bankruptcy Law 📎 Collective bargaining in bankruptcy: balance between business viability and labor rights 🏠 https://www.mchmabogados.es 🔗 https://www.mchmabogados.es/idiomas/en/abogados-derecho-concursal-almeria ⚖️ Lawyers in Almería 📞 950 106 453 / 674 21 65 59 📧 info@mchmabogados.es 👉 Collective Bargaining in Bankruptcy Proceedings: Collective Agreements, Deals, Possibilities and Limits ✨ 💬The declaration of bankruptcy not only involves a patrimonial and financial reorganization of the company, but also has a direct impact on labor relations, especially regarding collective bargaining. In this context, key questions arise: What happens with existing collective agreements? Is it possible to modify them? What limits does labor legislation impose? This article addresses these issues from a legal perspective updated to 2025. ✍️ 1. Applicable regulatory framework The main regulation is found in the Revised Text of the Bankruptcy Law (TRLC), approved by Royal Legislative Decree 1/2020, and in the Workers´ Statute (ET). In particular, article 189 of the TRLC establishes that the modification of working conditions set in collective agreements will only be possible if permitted by labor legislation and, in any case, will require the agreement of the legal representatives of the workers. 2. Collective agreements in force: untouchable? A company in bankruptcy cannot, by itself, annul a valid collective agreement. Case law and current regulation are clear: the validity of the collective agreement is not automatically altered by the declaration of bankruptcy. This means that labor rights recognized in such agreements remain enforceable unless their modification is agreed upon following legal channels. 3. Possibilities of modification: what can be negotiated? The bankrupt company may propose the need to modify working conditions to guarantee the viability of the restructuring plan. However, these modifications are subject to strict limits: • They can only affect matters that labor legislation allows to be negotiated. • They require agreement with the workers´ representatives. • They cannot imply a violation of fundamental rights nor of mandatory norms. In this regard, article 41 of the ET on substantial modifications of working conditions and article 82.3 on non-application of agreements (opt-out) are key tools, although their application in bankruptcy must be compatible with the bankruptcy procedure and supervised by the bankruptcy judge. 4. Priority of agreements: company or sector? A particularly relevant issue is the priority of application between company and sector agreements. The 2021 labor reform limited the possibility for company agreements to set salary conditions lower than sector agreements. However, the Supreme Court has recently recalled that article 84.1 of the ET remains in force: the collective agreement signed first in time has priority, unless there is a provision against it in a framework agreement or it involves matters with recognized priority application. This means that, even in bankruptcy, an earlier company agreement can prevail over a later sector agreement, provided legal limits are not violated. 5. Collective agreements within the bankruptcy framework Besides collective agreements, specific collective deals can be reached in the bankruptcy procedure, for example within the framework of a bankruptcy ERE or a viability plan. These agreements must be negotiated with the legal representation of the workers and may include measures such as: • Reduction of working hours or salary. • Suspension of contracts. • Collective dismissals. These agreements, while not replacing the collective agreement, can coexist with it and adapt to the needs of the bankruptcy procedure, always under judicial control. 6. Limits and guarantees Bankruptcy and labor legislation establish clear limits to protect workers´ rights: • A unilateral modification of the collective agreement cannot be imposed. • Every modification must be reasoned, proportional, and negotiated. • The bankruptcy judge must ensure the balance between business viability and protection of labor rights. Additionally, unions and works councils maintain full legitimacy to negotiate on behalf of workers, even in the bankruptcy context. Conclusion Collective bargaining in the context of bankruptcy proceedings is a complex field where labor law and bankruptcy law converge. While there are possibilities to adapt working conditions to the company´s new economic reality, these must respect legal limits and guarantee the active participation of workers´ representatives. The key is to find a balance between business continuity and the protection of labor rights, always under judicial supervision. ✨ ⚖️ Welcome to the Civil Online process offered by MCHM Lawyers. Through our online platform, we offer you the convenience of completing all procedures from the comfort of your home, without needing to visit our office or the courts (except imperative 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 [Civil], 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 Civil process. Uploading Documents: From your personal account, you can upload all necessary documents to initiate the Civil process. This includes text documents, images, and any other relevant documents for your case. Receiving Notifications and Requests: Once you have uploaded your documents, you will receive notifications and requests through your personal account on our online platform. These notifications will include information about the status of your case, any required actions on your part, and any important communication related to your Civil process. Process Tracking: From your personal account, you can track the real-time progress of your case. This includes information on hearings, judicial rulings, and any other relevant updates. Communication with Your Lawyer: Through our online platform, you will have the ability to communicate directly with your assigned lawyer. You can ask questions, make inquiries, and receive personalized legal advice at any time during the process. Receiving the Judgment: Once the process is complete, 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 Civil case. In summary, our Civil Online process offers you the convenience and flexibility to complete all procedures from the comfort of your home, without needing to visit our office or the courts (except imperative procedures). With access to your personal account on our online platform, you can upload documents, receive notifications, communicate with your lawyer, and track the progress of your case in real time. At MCHM Lawyers, we are committed to providing you with the best possible service throughout the entire Civil process. ✨ 📖 lawyers in almeria 📍 For more information, do not hesitate to contact MCHM Lawyers. ✍️ ⚓️ collective agreement, bankruptcy proceedings, labor negotiation, collective deal, bankruptcy judge, labor rights, modification of conditions, viability plan, union representation, business restructuring, opt-out of agreement, Workers´ Statute, labor balance, judicial supervision, business crisis

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