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The 'rebus sic stantibus' clause suspends agreement benefits

| News | Employment Law and Social Security

Alfredo Aspra analyses the 4th March 2019 ruling of the Madrid High Court of Justice in El Economista

The application of the rebus sic stantibus clause (that being the case), is going to take a huge role in the judicial decisions once the state of alert is over, due to the critical economic situation that many companies are going to have to face, after the economic standstill we have been suffering since last March, in matters such as the breach of contracts or commitments between company and workers through collective agreements.

In the 4th March 2019 Madrid High Court of Justice judgment, the commentator agrees with the company in view of the prolonged negative economic situation, which extended from 2008 to 2016.

Alfredo Aspra, partner and director of the Andersen Employment Practise, explains that "this interpretation is also supported by the fact that at the same time as the application, the employer informed the works council that she was unable to pay the salaries due to a strike process that placed the company in a situation of illiquidity. Furthermore, the status of the employee's unitary representative is not taken into consideration in the resolution of the dispute'.

The full article can be read in El Economista.

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