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The senior management contract requires autonomy to act

| News | Employment Law and Social Security

Alfredo Aspra analyses the 3rd February 2020 ruling of the Madrid High Court of Justice

The senior management contract of a person who acts directly under the orders of the director general and who has never taken decisions on his own behalf is null and void, according to a 3rd February 2020 ruling by the Madrid High Court of Justice.

The judge, Judge Hernani Fernández, determines that the senior manager must act with autonomy and full responsibility, i.e. with a margin of independence only limited by the criteria or directives of the higher governing and administrative bodies of the entity, so that not every person who assumes managerial functions in the company can be qualified as a senior manager, since those who receive instructions from other delegated management bodies of the employing entity must be excluded.

Alfredo Aspra, partner of Andersen Tax & Legal's Employment Area, explains that in order to prove the presence of a senior management relationship, the company must demonstrate the exercise of powers inherent in legal title and relating to the general objectives of the company with autonomy and full accountability, only limited by the criteria and direct instructions emanating from the person or from the entity's higher governing and administrative bodies

You can read the full article in El Economista.

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