Bill to curb offshoring and protect workers when companies are sold

Automatic summary, not yet reviewed

1. The bill would stop companies that move their activity outside the European Union or the European Economic Area from carrying out collective dismissals, objective-cause terminations, major changes to working conditions or deviations from collective agreements linked to that move. If they do, the dismissals would be deemed unfair and, where applicable, null and void.
2. Companies that move abroad and received aid in the previous four years through temporary layoff schemes (ERTE) or the RED Mechanism would have to repay everything, including Social Security contribution waivers.
3. In the sale of companies or production units with fifty or more workers, a viability plan and a consultation period of at least thirty calendar days with worker representatives would be required, with full information about the buyer and the sale. If there is no agreement, workers would have a right of first refusal for fifteen days.
4. If the consultation duty or the viability plan is breached, changes to working conditions would be void and dismissals unfair or null. The selling company would be subsidiarily liable, or jointly liable if it breaches the plan, for the economic consequences.

Who it affects

• Workers at companies that move their activity outside the European Union or the European Economic Area.: They could not be collectively dismissed or face condition changes linked to the move.
• Workforces of companies or production units with fifty or more workers being sold.: They would get information, a consultation period and a right of first refusal.
• Companies that move abroad and received ERTE or RED Mechanism aid in the previous four years.: They would have to repay benefits and Social Security contribution waivers.
• Selling companies.: They would be subsidiarily or jointly liable for the economic consequences of breaches.

Words worth knowing

Deslocalización (offshoring)

Moving a company's activity to another country, usually to cut costs.

Despido colectivo (collective dismissal)

Simultaneous dismissal of many workers for economic, technical or organizational reasons.

ERTE (temporary layoff scheme)

Procedure allowing temporary suspension or reduction of contracts, with unemployment benefits.

Mecanismo RED (RED Mechanism)

State aid system for workers hit by employment crises, similar to an ERTE.

Tanteo y retracto (right of first refusal)

Preferential right to buy something before others, here the production unit.

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