Spanish court gives hope to firms in trouble

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 (Angel) was one of eight employees dismissed due to his employer’s financial difficulties.

The dismissals were initially held to be unfair as the courts said they would make no difference to the company’s profitability.

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However, the Supreme Court has now held that as a general rule, provided an employer can demonstrate it is in serious financial difficulties and follows a fair procedure, any dismissals will be fair. The employer made losses of €5m in the past four years.