Rules for worker-owned companies and worker-participation companies

Automatic summary, not yet reviewed

1. A labor company (sociedad laboral) is a public limited or limited liability company where most of the share capital belongs to workers with permanent contracts and no shareholder owns more than one third of the capital. It may be founded with two members at fifty percent each, with 36 months to adjust.
2. The Ministry of Employment and Social Security or the competent Autonomous Communities grant the qualification of 'Sociedad Laboral', valid nationwide. Procedures may be completed electronically.
3. Shares are divided into labor class and general class, with the same nominal value and the same economic rights. The preferential acquisition system when someone wants to sell shares is simplified, giving priority to permanent employees who are not members.
4. If a worker member's employment ends, they must offer their shares within one month; if nobody buys them, they become general class shares. The company may buy its own shares to sell them to permanent employees within a maximum of three years, and may even provide financial assistance for that purchase.
5. Labor companies must set up a special reserve with ten percent of each year's net profit, until it exceeds twice the share capital. If requirements are not met, the company loses its qualification and must return public aid received.
6. Qualified labor companies get a 99 percent rebate on the tax on asset transfers when acquiring assets from the company most of their worker members come from. The law also defines, for the first time, the worker-participation company, with a recognition procedure.

Who it affects

• Public limited and limited liability companies that want to be labor companies: They must meet capital and hiring limits and qualify before the administrative registry.
• Permanent employees: They have priority to buy shares and can become members.
• Worker members: They must offer their shares if they leave the company and are subject to withdrawal and expulsion rules.
• Other companies with worker participation: They can be recognized as worker-participation companies.

Words worth knowing

Capital social (share capital)

The money members have contributed to the company, divided into shares.

Clase laboral (labor class shares)

Shares owned by permanent employees who are members; all others are general class.

Reserva especial (special reserve)

Part of the profits the company must set aside to cover losses or buy back shares.

Autocartera (treasury shares)

Shares the company buys of itself.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries