The new law of ‘Sociedades laborales' is envisaged to be adopted before the summer

The Spanish Government has stated that the drafting reform of the law for the ‘Sociedades laborales’ (SAL), a specific form of worker-owned businesses, “is in a very advanced stage” and is expected to be approved by the Council of Ministers before the summer. The reform aims to give a greater support for accessing worker-ownership of a company and self-management, ensuring employment stability and strengthening of the enterprise. This could be achieved through tax incentives to worker-owners of companies that fit into the SAL criteria, giving them a bonus to purchase shares of the company.

3 June 2011

The Confederation of SAL’s in Spain (Confesal) has also proposed, within the framework of the legal reform, to set up fiscal support of the SAL, which is committed to changing workers into owners with the aim of making SAL’s a more attractive corporate tool for entrepreneurs. "If the law reform had started at the time we first brought it up three years ago, public administration would have had an enhanced instrument to prevent job losses and the closure of enterprises", Confesal indicates.

The creation of new SAL’s has declined since the beginning of the crisis. Confesal underlines the deficiencies in the existing legislation and notably the lack of incentives to companies and to workers to adequately motivate them to become worker-owner active members with a permanent contract.

This situation, according to Confesal, "has led to constraints within the growth of many SAL’s; in some cases, it has also encouraged the hiring of non-member workers, without proportionate measures to support inclusion for workers as members".

Meeting between Confesal and the Spanish Ministry of Labour and Immigration
about the drafting reform of the law for the ‘Sociedades laborales’

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