Dismissals after a company closure: 21 employees
Closure of a Spanish subsidiary with unpaid wages and no dismissal compensation. The claims continued through to payment by FOGASA.
THE CASE
A major insurance mediation company closed its Spanish subsidiary. Around 80 employees were affected, with final wages unpaid and no dismissal compensation. Twenty-one employees entrusted their claims to IB Abogados.
OUR STRATEGY
Unfair dismissal claims were joined with monetary claims for unpaid wages and salary differences. After hearings before the Social Courts of Barcelona, judgments were enforced until the company was declared insolvent and the corresponding FOGASA claims could be filed.
OUTCOME AND RESULT
Within the applicable legal limits, employees received around €18,000 for dismissal and, in certain cases, around €9,000 for wage claims. The full path to payment took approximately 12 to 18 months depending on the court.
From a closed company that appeared unable to pay to recovering approximately up to €27,000 in some cases.