Spain: Government introduces changes to rules on redundancy plans

In early 2009, the Spanish government is drawing up amendments to the legislation governing redundancy plans, notably with the aim of limiting the use of early retirement when companies adjust the size of their workforces.

Employers wishing to terminate or temporarily suspend employment contracts on economic or technological grounds are legally obliged to draw up a redundancy plan, known as an “employment regulation procedure” (Expediente de Regulación de Empleo, ERE), and apply to the labour authorities for authorisation.