Severance pay

[mrypg9]

Originally Posted by JBODEN

mrypg9: I smell ears burning!

Tak, pan Boden, masz pravdu. (Excuse spelling...)

[maxd]

Mary just to clarify:

1) We are not going bankrupt. It was a bit off of you to twist that in people's minds. Rates in Spain have gone down for accommodation as they have in the rest of the world. Costs need to be cut in all businesses, so we need to downsize.

2) I am asking if we can Legally reduce the crazy spanish severance pay, which is the highest in europe. Is it not the duty of every business owner to reduce their costs Legally if they can.

3) We are not an internet operator. We operate buildings and individual apartments in 12 Europeans. So really a bricks and mortar business with over 500 properties managed.

Finally as for the full time contracts, they were done by the local manager without our knowledge. Saying "surely you ould have them on temporary contracts"just is rubbing salt into my wounds and makes me sound like a right numpty. Of course I am mad!

On the whole our business is still very successful.

[maxd]

Aha just one more answer:

"They will get no redundancy and because they have been sacked they may not be eligible for some benefits. They will get no reference to help find another job. So how on earth can anyone 'want to be sacked'?????"

Spain does not work like that. You are still entitled to redundancy even if sacked, although I believe it CAN be reduced.

[mrypg9]

If anyone implied that your company was in danger of bankruptcy, you did, max. You posted three things on this forum: 1) that you had employed an inept Spanish manager who had taken on staff presumably with your approval but who it seems lacked elementary business knowledge 2) you were in a position which necessitated shedding staff 3) you asked for advice on how to -your words -'weasel out of this'. You also posted a load of piffle about socialism but that's irrelevant.
It's up to people to draw their own conclusions from what you told us, if they're interested enough.
Your business is carried out on the internet and involves managing other people's and your own mainly leasehold properties. It's a good field to be in but like all such businesses has its risks.
Such companies are easy to start up, especially in Eastern/Central Europe. A few £ thousands start-up goes a long way in countries where rents and costs are low and regulations of all kinds often lax. The problem is that your main selling point is low charges. And because it's so easy for competitors to enter an already crowded field, you can find yourself engaged in a downward spiral of cost cutting until you either win or go under.
You have been in business in your current form for around two years, as I read from an old post of yours. It's unfortunate for you that you entered a wider European market just at the start of the global meltdown. But business is about planning for bad as well as good times.
We took over a business that had been running for almost forty years, the kind of business that required a huge capital investment on plant, equipment and machinery of all kinds as well as the maintenance of extensive workshops and offices. We also had to employ highly qualified and experienced technicians. Men who can build HGVs and other specialised vehicles to order for various sectors of the economy don't come easily - or cheaply. Instead of using our profits for personal display, we reinvested to further strengthen our position in a competitive sector. We could have indulged in any luxury vehicle we desired - we had links and worked with F1 companies- but settled for more modest but good vehicles and this only because it was essential for our Company's image.
Our experience has left us with different values than those of internet-based companies. We had bad times as well as good, of course, but we kept our skilled workforce because we value loyalty and it works both ways.
Im simply can't imagine that I or my fellow Directors would have publicly advertised our woes and asked for advice as to how to reduce benefits due to our employees.
And that's what you did.
I think enough has been said on this. And whilst I have all day to sit in my armchair or lie by my pool in Marbella, you have a business to run. I can't imagine any of our team spending time on internet forums whilst working - they were far too busy.