Profit Sharing Agreement Spanish
April 11th, 2021
April 11th, 2021
Financial participation and profit-sharing tend to be interpreted in Spain as a special and complementary remuneration mechanism; it is widespread in companies, but is limited to a percentage of fixed remuneration. Ownership of workers` shares occupies little space in collective bargaining and tends to be managed by enterprise agreements, often between companies and more skilled workers. Intersectoral collective bargaining (“Acuerdos Interconfederales para la Negociacién Colectiva”) between 2001 and 2005 In particular, those established in 2002 and 2003 note that collective bargaining is an appropriate instrument for defining the definition and criteria of a wage structure (fixed and variable) adapted to the situation of the sector and the company, taking into account the direct relationship with new systems of work organization and incentives for production, quality or results. The schemes applied are generally participation and profit-sharing and, almost always outside of collective bargaining, ownership of employees` shares. The “employees` equity companies” (hereafter the Act 4/1997 of 24 March 1997 on the limited companies of workers (“Ley 4/1997 de 24 de marzo, sociedades Laborales”), are limited companies whose majority of the capital is held by workers who provide them directly with services and therefore maintain a long-term working relationship with them. They contribute proportionally to their share in profits and losses. Employees are generally registered as self-employed and pay their own social security contributions. In Spain, profit sharing and collective management of the company are a common feature of the social economy in cooperatives and limited companies where employees share capital. According to the UGT, these formulas are a means of promoting the construction of the social market economy and, among other things, of increasing the productivity of enterprises and contributing to their modernization and democratization. They are also a means of primary distribution or income distribution and of improving workers` participation in their businesses.