Bill to fine companies that pay suppliers late

Automatic summary, not yet reviewed

1. The bill would add to Law 3/2004 against late payment a new title with infractions and penalties for missing payment deadlines and terms, something not specifically regulated until now.
2. It classifies infractions as minor, serious and very serious. For example, exceeding the legal payment deadline by more than twenty days would be serious, and systematically missing payment deadlines to the detriment of small and medium-sized companies would be very serious.
3. Fines would range from up to €6,000 for minor infractions to €900,000 for very serious ones. After a third repeat offense of a very serious infraction, regional governments could temporarily close the offending company for up to one year.
4. To help companies adapt, it proposes discounts on fines: 100% for the first six months, 80% up to one year, 50% in the second year and 20% in the third, provided the company immediately corrects the cause of the infraction.

Who it affects

• Companies and public administrations that pay suppliers: They could be fined if they miss payment deadlines or terms.
• Small and medium-sized supplier companies: They would be the main group protected against late payments.
• Regional governments (comunidades autónomas): They would be in charge of inspecting and penalizing infractions.

Words worth knowing

Morosidad

Late payment or non-payment of debts within the agreed deadline.

Reincidencia

Committing the same infraction again within a short period of time.

Prescripción

The maximum time limit to penalize an infraction or enforce a penalty; once it passes, action is no longer possible.

Proposición de ley

A bill introduced by parliamentary groups to become law; it is not yet approved.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries