Collective bargaining in Spain, is one of the main instruments for defining employment conditions within a company. However, for organisations, it is not merely a formal negotiation process with employee representatives, but also a strategic tool that can directly influence cost structures, work organisation and the management of employment relationships.
In Spain, collective agreements regulate an essential part of the relationship between companies and employees, establishing matters such as salaries, working hours, professional classification, promotion systems and certain employment benefits. For this reason, poorly managed collective bargaining can generate future disputes, while an appropriate negotiation strategy can lead to sustainable agreements adapted to the company’s needs.
Collective bargaining requires a balance between the interests of the company and the rights of employees. For companies, the key is not only to reach an agreement, but also to ensure that the process complies with legal requirements and is conducted according to the principles of transparency and good faith.
The Role of Collective Bargaining Within the Company
Collective bargaining makes it possible to establish a common employment framework applicable to a group of employees. Its importance goes beyond setting economic conditions. A collective agreement may define essential aspects of business organisation, such as professional classification systems, working time arrangements, flexibility mechanisms or criteria for adapting certain employment conditions.
For companies, this means that collective bargaining should be approached as a strategic matter and not merely as a legal obligation. Decisions adopted during negotiations may have effects for years and directly affect the company’s ability to adapt to economic, organisational or production-related changes.
Collective Bargaining in Spain: Legal Framework and Standing of the Parties
Collective bargaining is recognised as a right under Article 37.1 of the Spanish Constitution and is primarily developed through Title III of the Employees’ Statute. The negotiation process requires the participation of duly authorised parties, both on the employer’s side and on the side of employee representatives.
In accordance with Article 87.1 of Royal Legislative Decree 2/2015 of 23 October, approving the consolidated text of the Employees’ Statute, the standing to negotiate on behalf of employees in company-level and lower-level collective agreements belongs to:
- The works council.
- Employee representatives.
- Trade union sections, where they exist, provided that together they hold the majority of the members of the works council.
Critical case-law point: The rules governing standing are mandatory and fall outside the parties’ discretion. In companies without employee representatives, it is not possible to validly negotiate a statutory company-level collective agreement with erga omnes effect through the appointment of ad hoc committees, as held by the National High Court, judgment of 26 May 2016 and the High Court of Justice of the Canary Islands, judgment of 2 June 2016. Ad hoc committees are only entitled to act as interlocutors during consultation periods concerning collective measures, such as collective dismissals or substantial modifications to employment conditions, but they do not have the capacity to negotiate statutory collective agreements.
Preparation Before Negotiations: The Decisive Element Before Sitting at the Negotiating Table
Effective collective bargaining does not begin at the negotiating table. Before starting any process, the company should analyse its current situation, identify its objectives and assess the economic and organisational implications of the different alternatives.
Prior preparation makes it possible to define which matters are priorities, what limits exist and what scope for negotiation the company can assume. At this stage, it is particularly important to analyse issues such as the salary structure, employment costs, work organisation, developments within the sector and the relationship with employee representatives. Improvised negotiations may create commitments that are difficult to maintain later.
The Obligation to Negotiate in Good Faith
One of the fundamental principles of collective bargaining is the obligation to negotiate in good faith, as established in Article 89.1 of Royal Legislative Decree 2/2015 of 23 October, approving the consolidated text of the Employees’ Statute.
This does not mean that the parties are obliged to reach an agreement. Good faith does not require either party to accept the other party’s proposals, but it does require a genuine willingness to negotiate, the exchange of reasoned proposals, effective meetings and consideration of alternatives.
The courts have held that a merely formal or apparent negotiation, without a genuine intention to bring the parties’ positions closer together, constitutes a breach of the duty to negotiate in good faith and may render the process null and void or justify the adoption of collective dispute measures, as analysed in the judgment of the High Court of Justice of the Canary Islands of 21 June 2016.
The Importance of Information and the Duty to Document
The information provided during the negotiation process plays an essential instrumental role in the exercise of the right to collective bargaining. Employee representatives must have sufficient information and documentation to understand the company’s actual situation and conduct properly informed negotiations.
This duty to provide information is particularly significant. Failure to provide the economic or technical documentation necessary for informed negotiations prevents the effective exercise of the right to consultation and may result in the measures or agreements adopted being declared null and void, as established by the High Court of Justice (Roj: STSJ M 2968:2025 · ECLI: ES:TSJM:2025:2968). Companies should therefore pay particular attention to the traceability and delivery of documentation provided during meetings of the negotiating committee.
Company Collective Agreements: Priority of Application and Limitations
Company collective agreements provide organisations with a valuable tool for adapting employment regulation to their specific productivity and organisational needs.
In accordance with Article 84.2 of Royal Legislative Decree 2/2015 of 23 October, approving the consolidated text of the Employees’ Statute (as amended on 22 May 2024 by BOE-A-2024-10235), the provisions established in a company collective agreement take priority over a national, regional or lower-level sectoral collective agreement in the following areas:
- Payment or compensation for overtime and specific remuneration for shift work.
- Working hours and the distribution of working time, shift work arrangements and annual holiday planning.
- Adaptation of the professional classification system to the company level.
- Adaptation of aspects of employment contract arrangements that the Employees’ Statute assigns to company collective agreements.
- Measures promoting shared responsibility and reconciliation of professional, family and personal life.
Critical limitation regarding overlapping collective agreements: Outside these matters where priority of application is expressly established, the principle of chronological priority under Article 84.1 of the Employees’ Statute applies. This prevents a subsequent company collective agreement from worsening salary conditions or maximum annual working time established by a valid higher-level sectoral collective agreement, as confirmed by the Spanish Supreme Court (Roj: STS 3661:2025 · ECLI: ES:TS:2025:3661).
Collective Bargaining in Business Transformation Processes
Collective bargaining becomes particularly important when a company is undergoing change. Situations such as internal reorganisations, changes to working systems, implementation of new organisational models or restructuring processes require effective dialogue with employee representatives.
In these circumstances, the quality of the negotiation process can be decisive. The courts analyse not only the final outcome, but also how the negotiations were conducted, what information was provided and whether there was a genuine willingness to engage in dialogue.
Legal Risks of Poorly Managed Collective Bargaining
Collective bargaining that is incorrectly structured or affected by procedural defects can create significant contingencies for the company:
- Challenges to collective agreements: These are dealt with through the specific procedural mechanism established in Article 163 of the Labour Jurisdiction Act, which allows a collective agreement to be declared wholly or partially null and void if it breaches applicable legislation or seriously harms the interests of third parties, as analysed in the doctrine of the Spanish Supreme Court (Roj: STS 2985:2025 · ECLI: ES:TS:2025:2985).
- Collective disputes and strikes: These may arise from deadlocked negotiations or the unilateral failure to apply agreed conditions.
- Individual monetary claims: These may arise where a company collective agreement lacking priority of application is applied or where the agreement has been negotiated by parties without the full standing required under Article 87 of the Employees’ Statute.
The Role of Human Resources in Collective Bargaining
Human Resources departments play an essential role in preparing and conducting collective bargaining. HR must coordinate internal information, assess the impact of proposals and ensure that decisions adopted are consistent with the company’s business strategy.
Internal communication is also particularly important. Collective bargaining does not take place only at the negotiating table, but also through the way in which the company communicates changes and manages the expectations of its workforce.
Good Practices for Companies Engaging in Collective Bargaining
- Formal and rigorous constitution of the negotiating table: Strictly verify the initial and full standing of the employee representatives at the beginning of negotiations, in accordance with Articles 87 and 88 of the Employees’ Statute.
- Establish a negotiation timetable: Comply with the maximum period of one month for constituting the negotiating committee following receipt of the communication initiating negotiations, establishing a written work plan (Article 89.2 of the Employees’ Statute).
- Document the negotiation sessions: Prepare detailed minutes of each meeting of the negotiating committee, recording proposals, counterproposals and partial agreements reached in order to demonstrate good-faith negotiation.
- Guarantee transparency of information: Provide economic and organisational documentation in an orderly manner and with acknowledgement of receipt, protecting the confidentiality of sensitive information through prior confidentiality agreements.
Collective Bargaining as a Tool for Business Stability
Collective bargaining can become a key element for the stability and development of an organisation. A properly designed collective agreement establishes clear rules, reduces uncertainty and facilitates business adaptation to new scenarios.
However, achieving this objective requires the negotiation process to be properly prepared and conducted in accordance with legal requirements. The company should not only seek to reach an agreement, but also ensure that the agreement is robust, sustainable and legally defensible.
At Suárez de Vivero, we advise national and international companies on collective bargaining, collective agreements, employment disputes, business restructurings and relations with employee representatives.
Frequently Asked Questions About Collective Bargaining in Spain
Can a company refuse to start negotiations for a collective agreement?
Under Article 89.1 of the Employees’ Statute, the party receiving a request to negotiate may only refuse to initiate negotiations on legal or collectively agreed grounds, such as a lack of standing on the part of the initiating party, the existing collective agreement not having been formally denounced, or an attempt to negotiate within a prohibited overlapping scope. In all cases, the receiving party must respond in writing and provide reasons.
What majority is required to adopt agreements within the negotiating committee?
Under Article 89.3 of the Employees’ Statute, agreements reached by the negotiating committee require, in all cases, the favourable vote of a majority of each of the two sides represented — the employer side and the employee side — thereby ensuring the principle of correspondence and representativeness in the adoption of the collective agreement.
What is the difference between initial standing and full standing?
Initial standing under Article 87 of the Employees’ Statute determines whether an entity is entitled to participate in collective bargaining based on its representativeness within the scope of the collective agreement.
Full standing under Article 88 is what allows the negotiating committee to be validly constituted. It requires the trade unions or representatives forming part of the negotiating table to represent, at a minimum, an absolute majority of the members of the works councils and employee representatives within the relevant scope, as clarified by the Spanish Supreme Court (Roj: STS 2238:2026 · ECLI: ES:TS:2026:2238).
Can a trade union that did not sign the collective agreement challenge it before the courts?
Yes. Any trade union with sufficient presence within the scope of the collective agreement and a legitimate interest may bring proceedings to challenge a collective agreement on grounds of illegality or detriment, regardless of whether it participated in the negotiating committee or refused to sign the final text, in accordance with the procedural standing rules under Article 17 of the Labour Jurisdiction Act.
