Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 89
Spain
3
Insolvency
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Preferential nature of teleworking: alternative organisation systems will be established,
particularly teleworking, and companies must adopt the appropriate measures, if this is
technically and reasonably possible and the effort required to adapt is proportionate.
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Sick leave: Sick leave due to COVID-19 infections or preventive isolation is treated as an
occupational accident for the purposes of benefits.
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Recoverable paid leave: There was a time window between March 30 and April 9, 2020,
both inclusive, in which workers involved in non-essential activities were not able to
go to work as result of the Covid-19 crisis and subsequent State of Emergency. During
that period, those affected workers benefited from a mandatory recoverable paid leave
(permiso retribuido recuperable). The recovery of the missing working hours by the
employees shall be carried out until December 31, 2020 under the conditions to be
collectively agreed with their employer.
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Reopening to the public of certain establishments: The conditions for the reopening to
the public of ‘low risk’ retail establishments and premises, as well as for the activities of
professional services suspended due to the Covid19, has been regulated in the Order
SND/388/2020, that contains the main terms and conditions for such reopening, being
mainly, among others: gradual opening, required physical 2 meters separation and a
special time slot for people older than 65 years. These reopening measures do not
apply for those establishments and premises measuring over 400 square meters.
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In any event, this gradual reopening of the public and economic activities will be
determined by the specific regional and local adequacy to the 4-phases-plan stablished
by the Spanish Government in terms of relaxing the lockdown measures. Therefore, the
relevant measures applicable in each case shall depend on the phase in which each
region or municipality is at. For further information about this matter, please visit here.
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Suspension of all procedural terms and authorised judicial proceedings:
– All procedural terms for all kinds of courts have been suspended, which includes
terms before commercial courts, which are the courts that specialise, among others, in
insolvency matters and form part of the civil jurisdiction. These terms will resume when
the state of emergency ends. However, this suspension does not prevent the courts from
ordering the performance of any judicial steps that are necessary to prevent irreparable
damage to the legitimate rights and interests of the parties to the proceeding.
Has the
government
made any
changes to
insolvency
legislation?
– New insolvency proceedings are also subject to the restriction of new submissions
indicated above.
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The duty to request a voluntary insolvency order has been disabled until December
31, 2020. In this respect, no petitions for necessary insolvency orders filed by
creditors against the debtor will be admitted for consideration. However, directors
should not lower their guard, since this measure does not mean that they cannot incur
liability for causing or aggravating insolvency for the company. For further information
about this matter please visit here.
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The Official Spanish State Gazette (BOE) has published a new Spanish Revised
Insolvency Law on May 7, 2020, introducing regulation that departs from the existing
provisions on restructurings and insolvencies. For further details please visit here.
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For more information please visit: Companies facing the COVID-19 crisis, and
COVID-19: Key new legislation introduced in Royal Decree-Law 11/2020
Government measures in key jurisdictions
89