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  • How the new due diligence directive affects SMEs working with large companies

    The European Corporate Sustainability Due Diligence Directive entered into force on 26 August. Although implementation will begin for large companies from 2026, it is not only large companies that will have to adapt to the new legal requirements. Indirectly, SMEs that do business with them will also be strongly affected.

    The chain of activities

    The key is the concept of the «activity chain». According to the text of the Directive, large companies will also have to carry out at least annual assessments of their subsidiaries and value chains in a comprehensive manner, both upstream and downstream. That is:

    • Upstream, business partners engaged in the production of goods or the provision of services. This includes activities such as the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of products and product or service development.
    • Downstream, trading partners who carry out activities related to the distribution, transport and storage of the product.

    The Directive requires all large companies to take responsibility for ensuring sustainability in each of these links. It is not enough to verify practices within the company itself. Rigorous monitoring of the entire network of business relationships, both direct suppliers and indirect suppliers who, while not interacting directly with the company, contribute critical inputs or services, is also mandatory.

    Which business partners are not affected by the Sustainability Due Diligence Directive

    Which business partners are not affected by the Sustainability Due Diligence Directive

    On the other hand, the following are exempted from the concept of a chain of activities: trading partners engaged in the disposal of the product and in the distribution, transport, storage and disposal of a product subject to a Member State’s export control or export control on arms, munitions or war material.

    Obligations of SMEs in the activity chain

    In general, the new Directive applies directly to companies with more than 500 employees and a worldwide net turnover of more than EUR 150 million. In certain high-risk sectors the limits are reduced to 250 employees and €40 million.

    In theory, therefore, SMEs are excluded from this direct obligation. In practice, all companies that are part of the activity chain of a large company will have to face indirect obligations. For example, they have to have environmental and human rights plans and to carry out audits and reports. Regardless of whether they are SMEs or not. The reason is that large companies affected by the Directive will require them to comply with certain standards so that they do not themselves violate the requirements imposed.

    Financial assistance

    Adapting to these new requirements will undoubtedly cost SMEs time and money. SMEs serving large companies will need to invest in new technology, training and consultancy services to comply with the requirements of the Sustainability Due Diligence Directive. The good news is that the EU and national governments will be able to offer support programmes and funding to mitigate some of the costs.

    In addition, complying with sustainability standards can improve competitiveness and open up new business opportunities for SMEs, as it will make them more attractive to large companies that need to comply with the Directive. At Confianz we can help your SME to meet these requirements.

  • Integration: how to successfully complete an M&A transaction

    After the closing of the transaction, the last phase of any M&A process is the integration of the acquired company into the acquiring company. This is in fact the ultimate goal of any merger or acquisition, and its success depends to a large extent on its prior preparation.

    Post-acquisition integration (also known as PMI or post merger integration) is the assimilation and sometimes restructuring of the acquired company. In this process, the processes, organisations and business areas of the entities involved are harmonised. The objective is that at the end of the process there is a single organisation in operation and not two separate organisations with incompatibilities or redundancies in their structure and operation.

    We will review the best way to plan this key process for the success of any M&A transaction.

    Post-acquisition integration steps

    Although no two M&A projects are the same, in general we can distinguish five phases in the PMI process.

    Planning

    The duration and effort involved in the PMI process should never be underestimated. Integration planning should start as early as possible, at the same time as the definition and planning of the acquisition strategy. Otherwise, if left to the end, you risk creating an unnecessary level of complexity in the integration.

    The first general plan should contain the main steps and objectives, but it is not possible to draw up a detailed project at this stage. For this reason, throughout the M&A process, it is necessary to gradually incorporate all new information that becomes available. For example in the course of due diligence. The integration process must be dynamic, in order to achieve a PMI that is increasingly accurate as the M&A process progresses.

    Creation of a new management chart

    It is imperative to carefully create a new management organisation that not only matches the structures of the acquirer and the acquired company, but also creates a single optimal structure for the new company resulting from the M&A process. This involves defining precisely which competencies will be assumed by the general management of the company and which will reside in the different business units acquired, distinguishing by functions, sectors and regions if necessary.

    Appointment of senior staff

    Once the distribution of competencies has been made, the people who will fill each of the positions need to be appointed. To do this, it is important to design a fair selection process and criteria. The most common is to start with the appointment of senior management. These, in turn, are responsible for appointing the managers under their hierarchy.

    Harmonisation of operational processes

    This is a key point for the success of the integration. It has to be decided which processes of the acquiring and acquired company can or should be taken over and which should be redesigned.

    Creating a common corporate culture

    No PMI process is successful if it does not take into account the cohesion and satisfaction of the employees. Because the very announcement of an M&A process is a source of uncertainty for employees. It is therefore important to develop a common corporate culture with which employees can identify, to use training measures, to adapt incentive schemes, etc.

    Conclusion

    Companies are not normally undergoing M&A processes all the time. That is why it is essential to have specialised advice throughout the whole process. If you would like legal and tax advice on post-acquisition integration, Confianz can help you.

  • Treasury faces millions in refunds for making merger taxation more difficult

    The Treasury could have to refund millions of euros to many companies for making taxation difficult in the special regime for mergers, acquisitions and spin-offs, better known as the FEAC regime. The possibility is very real, because both the Court of Justice of the European Union (CJEU) and the Supreme Court (SC) are currently analysing whether the Spanish regulations are in line with the European Directive.

    The current FEAC regime

    The irregularity would be found specifically in the special regime for spin-offs, which would make tax deferral difficult. According to Spanish law, when a company is extinguished and split into two new companies in which the partners do not participate in the same proportion, it is obligatory to pay tax at the time of the creation of the new companies. The tax authorities do not allow in such cases to defer taxation to a later point in time, when the shares are sold. The only exception to this rule is when the assets acquired are separate branches of activity.

    This is a very damaging rule for spin-off companies, which normally do not plan to sell. Because many of these restructurings are aimed precisely at promoting generational change.

    The position of the European Comission and the Supreme Court

    The European Commission considers that the Spanish rule goes against the European Directive because it establishes restrictive conditions instead of facilitating these operations. For this reason, following a letter of formal notice issued in 2019 and a reasoned opinion in 2023, it has referred Spain to the CJEU.

    Meanwhile, the Supreme Court has also upheld in an order of 10 April an appeal to determine whether it is in accordance with European law that in spin-offs where the partners do not hold the same proportion of shares, tax is only deferred if the assets acquired represent a distinct branch of activity.

    We are therefore at an impasse. It is most likely that the Supreme Court will not make its decision until the Court of Justice of the European Union has ruled.

    What to do now

    Confianz’s recommendation for companies that find themselves in this circumstance is to pay the tax authorities and immediately appeal the tax assessment. We will then await the pronouncement of the CJEU and the Supreme Court. If the courts conclude that the Spanish rule is not in line with the European rule, all those companies that have asked for a refund and still have the case open will be able to receive what they have paid. To this figure will have to be added interest for late payment of 4%.

    Spin-off companies that have paid less than four years ago are also in time to claim.

    The Treasury already has to pay back more than 11.2 billion euros

    The more than likely rulings against the FEAC scheme would add to the string of judicial setbacks that the Tax Agency has accumulated in recent times. According to the Ministry’s own estimates, the Treasury is already facing the return of more than 11.2 billion euros as a result of the latest adverse rulings. Most of them affect companies. The two most important are:

    • In January, the Constitutional Court overturned the 2016 Royal Decree-Law that tightened corporate income tax.
    • In May, the CJEU declared illegal the supplement to the Hydrocarbon Tax applied by the autonomous communities between 2013 and 2018.

    If your company is in any of these situations, Confianz will advise you so that you can recover the amount paid plus the corresponding interest for late payment.

  • An error in the Parity Law opens the door to dismissals for those who request a change in their working hours

    A technical error in the wording of Organic Law 2/2024, of 1 August, on equal representation and balanced presence of women and men, known as the Parity Law, now allows companies to dismiss workers who have requested an adapted working day or leave for family reconciliation. Let’s see what the situation is.

    When does the Parity Law come into force

    Tomorrow, 22 August 2024, the Parity Law will enter into force. The aim of Organic Law 2/2024 on equal representation and balanced presence of women and men is to guarantee gender equality in various areas, including the labour market. To this end, it establishes a series of amendments to the Workers’ Statute, Spain’s main labour law.

    What does the new Organic Law 2Qué dice la nueva Ley Orgánica 2/2024 say

    As recognised by the Ministry of Equality itself, the promoter of the law, a technical error in the wording of the law could allow companies to dismiss workers who request changes in their working day or leave for family reconciliation. For example, the Parity Law gives companies the power to dismiss workers who request five days’ leave to care for sick family members.

    Where is the error

    The error is due to an omission in the protections that until now shielded workers in these situations from dismissal. In order to include female workers who are victims of gender-based violence in the articles of the Workers’ Statute, changes have been made to an obsolete version of the law, prior to the modification that took place in Royal Decree Law 5/2023, which came into force last year.

    Since the approval of Royal Decree-Law 5/2023, of 28 June, and until now, dismissals related to requests for leave or changes in the working day due to family reconciliation were considered null and void. These workers have enjoyed special protection and, as a result, should be reinstated immediately. In addition, the company had to pay them the unpaid wages in the period between the illegal dismissal and the judgement.

    However, with the new Parity Law, these dismissals are now classified as unfair. With this classification, the company is free to dismiss the worker and is not obliged to reinstate him/her. It only has to pay compensation of 33 days’ salary per year worked up to a maximum amount equivalent to two years’ salary.

    What happens next

    The Ministry of Labour has committed itself to rectify the failure as soon as possible, although it has not given a specific date. Because this change requires a process that cannot be immediate. It must necessarily be approved by both Congress and the Senate. The Council of Ministers will not start work again until 27 August, five days after the change in the Workers’ Statute comes into force. Therefore, at least a few weeks will have to wait for this rectification to take place.

    Pending the text being rectified, over the next few weeks companies will have the ability to dismiss workers who request changes to their working hours or work-life balance leave. Both employees and employers find themselves in a situation of uncertainty that will hopefully be resolved quickly. From the labour consultancy service of Confianz, we will remain attentive to the news to advise the companies that trust us. Do you want to be one of them? We are waiting for you.

  • Business family members on the steering committee: pros and cons

    By definition, a family business is one in which a business family is the majority owner. However, when it comes to the administration and management of the company, the entrepreneurial family can have a varying level of involvement in the corporate governance bodies. In this article we ask specifically what the presence of members of the entrepreneurial family on the management committee should be.

    Functions of the steering committee 

    The management committee arises from the need to coordinate the different specialised departments that emerge as the company grows. It is made up of the general manager and the directors of marketing, administration, export, production…

    This body is the highest executive body of the family business and has a dual function. On the one hand, it promotes collaboration between the heads of the different areas of the company, providing them with an overall vision. On the other hand, it is responsible for implementing the strategies proposed by the board of directors and managing the day-to-day running of the company.

    How the entrepreneurial family is integrated into the steering committee

    While the board of directors usually consists wholly or partly of members of the entrepreneurial family, this is not always the case for the management committee.

    Some family businesses decide that the entire management team should be made up of family members. Others opt for the opposite, forming a team of external executives. Finally, there are others that mix family and non-family members on their management committee. There is no single right decision in this respect. Each family business must choose the right option according to its needs and idiosyncrasies, and all have their pros and cons.

    Advantages and disadvantages 

    When most or all members of the management committee are members of the business family, there is a better natural alignment between the interests of owners and management. However, having mostly family managers also has its drawbacks. Because belonging to a business family is not necessarily synonymous with being a good manager. And personal factors tend to play a greater role in decision-making in family businesses than in other companies. Therefore, it is advisable to implement a process of continuous self-assessment and act accordingly.

    The support of the entrepreneurial family for the common project is undoubtedly a valuable intangible. However, it can sometimes work against the professionalisation of the company if not all members have the required experience and training.

    Another potential risk is excessive complacency. For example, when all members of the management committee are family members, many companies dispense with the implementation of control and incentive systems. Because these are mechanisms that are often used to reconcile the objectives of owners and managers. However, it is advisable to set up monitoring methods and incentive programmes for family managers as well.

    Ultimately, strong family control of the company’s management does not have to be a negative thing. But it is necessary to seriously face the challenges it entails. At Confianz we have been working for years in the field of advising family businesses, helping them to achieve their strategic and business objectives and we would like to accompany you in the growth of your family business. Shall we talk?

  • The foreign direct investment (FDI) regime in M&A transactions

    The foreign direct investment (FDI) regime is essential in the context of mergers and acquisitions because it creates control and cooperation mechanisms between EU Member States. The recent Royal Decree 571/2023 creates a new regulatory framework for foreign investments in Spanish companies. Therefore, it has a determining weight in M&A operations.

    What is foreing direct investment?

    A foreign direct investment is an investment of any kind by a foreign investor for the purpose of creating or maintaining lasting and direct links between the foreign investor and the company to which the funds are allocated for the exercise of an economic activity in Spain. Also included in this classification are investments that allow an effective participation in the management or control of a company.

    Royal Drecree 571/2023 on foreign investments

    Royal Decree 571/2023 of 4 July on foreign investment, which came into force on 1 September 2023, has modified and developed the foreign direct investment (FDI) regime in Spain. These are some of its new features:

    Reduces the resolution period

    The time limit for deciding on applications for authorisation is reduced from 6 to 3 months.

    Creates a new system of exemptions

    It introduces new transactions exempt from the prior authorisation regime. Exceptions are made for investments of foreign origin in companies in strategic sectors whose turnover does not exceed 5,000,000 euros in the last financial year for which accounts have been closed.

    Sets out investor profiles subject to ahthorisation

    It delimits the activities included in certain strategic sectors subject to authorisation in the case of foreign direct investment. For example, inputs provided by companies that develop and modify software used in the operation of critical infrastructure in sectors such as energy or telecommunications and inputs that are indispensable and non-substitutable to ensure the integrity, security or continuity of activities affecting critical infrastructure are now considered essential. For example, water supply, energy, strategic raw materials, health services, food safety, financial and taxation systems…

    Authorisation is also required, irrespective of the sector in which they invest, for all non-EU resident investors or those residents whose beneficial ownership is held by a non-resident, when they acquire a holding equal to or greater than 10% of the capital of a Spanish company or, when they acquire control of all or part of it in accordance with the criteria established in Article 7 of the Law on the Defence of Competition, if they are in any of these three situations:

    1. It is controlled by the government of a third country.
    2. It has previously intervened in sectors affecting public policy, public security or public health in another Member State.
    3. There is a serious risk that the investor engages in criminal activities affecting public safety, public order or public health.

    Implements new sanctions

    It is considered a very serious infringement to carry out a transaction without prior authorisation. As a result, the minimum fine is €30,000 and may amount to up to the economic content of the transaction.

    Conclusion

    In short, Royal Decree 571/2023 of 4 July on foreign investments significantly changes the rules of the game as far as foreign investments in M&A are concerned. If your company is facing an operation of this type, you can count on the expert advice of the Confianz team specialised in mergers and acquisitions.

  • NIS2 Cybersecurity Directive: how it affects businesses

    The European Union’s Network and Information Systems Security Directive NIS2 creates a new standard for corporate cybersecurity. That is, on cybersecurity measures to ensure that companies’ networks and information systems remain protected against cyber threats.

    Which companies are affected

    The new NIS2 Directive affects all medium-sized and large companies in the following sectors classified as essential or important: energy; transport; banking; financial market infrastructures; healthcare; drinking water; waste water; digital infrastructure; ICT service management; space; postal and courier services; waste management; manufacture, production and distribution of chemical substances and mixtures; production, processing and distribution of food; digital service providers; research; and manufacture of medical devices, IT, electronic and optical products, electrical equipment, machinery, motor vehicles and transport equipment.

    Aims of the NIS2 Cybersecurity Directive

    The NIS2 Cybersecurity Directive builds on the previous NIS1 Directive adopted in 2016. Its ultimate goal is to strengthen the capabilities of organisations operating in the EU that perform critical functions for society and the economy. To this end, it has been proposed:

    • Reduce inconsistencies in addressing cyber security threats;
    • Raise awareness of cybersecurity;
    • Improve the ability of organisations to respond to incidents.

    People, processes and technology

    When the NIS2 Directive comes into force, thousands of companies will have to proactively implement a range of measures including: information systems security policies and risk analysis, incident management, backup management, crisis management, supply chain security, maintenance of network and information systems, cyber hygiene, cyber security training, access control policies, etc.

    Compliance with the NIS2 Directive does not only involve the ICT department or the CISO (Chief Information Security Officer). Nor is it enough to acquire new technologies to deal with cyber-attacks. To comply with NIS2, it is necessary to build a security culture that affects the entire organisation. In other words, it is a question of companies having better cybersecurity practices and a general culture that reaches each and every member of the organisation.

    This is why each requirement of the NIS2 Directive is divided into three categories: people, processes and technology.

    Persons

    Providing all staff with cyber security training as soon as they join the company ensures that cyber security is always a priority. But this requirement should not be limited to members of the organisation. Partners must also meet these requirements.

    Processes

    Cybersecurity processes must constantly evolve to stay ahead of cybercriminals.

    Technology

    The company must ensure that it has the right technology to defend itself against any threat. Therefore, the necessary infrastructure must grow at the same pace as the business. For their expansion creates new risks, and more elements to protect.

    Timetable for implementation

    EU member states have until 17 October 2024 to transpose the NIS2 regulations into national law. Thousands of companies will therefore have to adopt measures this year to increase their resilience and capacity to respond to cybersecurity incidents.

    Compliance with the new regulation can be challenging. However, companies that prioritise cyber security now will be much better prepared to defend against current and emerging security threats and accelerate their growth. On the other hand, the costs of non-compliance with the Directive could include fines, reputational damage and loss of customers.

    Compliance with the NIS2 Directive requires full coordination between the IT, cybersecurity, risk management and legal departments. For this reason, we recommend that you trust Confianz to advise you on the implementation of this complex regulation that could be key for the future of your company.

  • Anti-money laundering measures in M&A transactions

    Large corporate transactions, such as mergers and acquisitions (M&A), are highly complex procedures that can be exploited by malicious actors for money laundering. This is why medium and large-scale M&A transactions need to comply with regulations, strategies and mechanisms. Both to prevent them from being used to integrate illicit funds into the legal financial system and to be able to demonstrate to the authorities that corporate structures have not been manipulated to hide the origin and ownership of funds.

    Enhanced due diligence

    Enhanced due diligence is a fundamental tool in the prevention of money laundering. In M&A transactions, this process consists of conducting a thorough and detailed investigation of both parties before closing a contractual agreement.

    It not only assesses the financial viability of the operation, but also identifies potential red flags of illicit activities. To this end, it is essential to implement rigorous controls and assess the risk profiles of the parties involved and to verify both the provenance of funds and the integrity of the target companies’ financial records.

    The objectives of enhanced due diligence are:

    • Comply with regulatory requirements and standards.
    • Identify and mitigate any red flags or risks that could affect reputation.
    • Avoid association with entities or individuals who are involved in criminal or unethical activities.
    • Verify the identity, background, financial and legal status of the parties.

    Establishing a compliance culture that integrates artificial intelligence and blockchain to fight money laundering

    Companies need to incorporate a strong compliance culture into their corporate culture to mitigate money laundering risks. Beyond the implementation of policies and procedures, it is also key to keep the organisation alert and prepared for any irregularities.

    This requires ongoing staff training on the latest money laundering tactics and best practices in due diligence. In this regard, we should bear in mind how the use of artificial intelligence and blockchain is profoundly revolutionising the field of compliance. These new technologies offer new possibilities for real-time monitoring of transactions. They are also very useful in automating the processes of verifying the identity and origin of funds. Thanks to them, anti-money laundering programmes are more efficient and effective.

    Adapting to the challenges of a changing global environment

    The global transaction landscape is evolving rapidly. So too must the techniques used to prevent money laundering. For all companies, but especially for those facing M&A transactions, the challenges ahead will include:

    • Adaptation to new regulations
    • The rise of emerging markets with different legislation
    • The response to technological innovations that can facilitate money laundering as well as its detection and prevention.

    The ability of each company to adapt quickly to all these changes will be crucial to maintain the effectiveness of anti-money laundering prevention programmes. Also to avoid legal problems after the merger or acquisition contract. At Confianz we are specialists in M&A compliance and we can help you neutralise the risks faced by any company in an operation of this magnitude. Our legal team continuously monitors changes in regulations to ensure that your company complies with the highest international standards in its M&A operations.

  • What is a Large Company for tax purposes: requirements, obligations and benefits

    For tax purposes, for the Spanish Tax Agency, a Large Company has different rights and obligations than an SME. However, do you know what characteristics a company must meet in order to be considered a Large Company by the tax authorities? If your company is in a growth phase, you will be very interested to know. We explain everything in this article.

    What does the Treasury consider a Large Company to be?

    The Tax Agency considers any company, entrepreneur or professional whose turnover exceeds 6,010,121.04 euros per year to be a Large Company. The change of status is immediate, starting the following year.

    How is the trading volume calculated?

    The volume of transactions refers to the total amount of supplies of goods and services carried out, including those exempt from tax. This includes both transactions carried out during the year and those in which VAT has accrued, if the special cash basis scheme is not applicable.

    On the other hand, this calculation does not include VAT quotas, nor the equivalence surcharge, nor the compensation received by farmers, fishermen and stockbreeders who pay taxes under the Special Regime for agriculture, stockbreeding and fishing. Also excluded are: occasional supplies of immovable property, supplies of investment goods, financial transactions exempt or not from VAT, and exempt transactions relating to investment gold when they are not normal business or professional activity of the company.

    What are the consequences of acquiring Large Company status?

    Acquiring the status of Large Company changes many aspects of taxation. It has implications for the deadlines and ways of filing certain self-assessments, for the calculation of corporate income tax instalments, for the way of keeping record books and for the way of receiving notifications or replying to requests made by the Tax Agency.

    New obligations to the tax authorities

    Immediately, the company that becomes a Large Company must:

    • File form 036 with the Tax Administration online. In this way, it is communicated that the company has become a Large company.
    • File VAT self-assessments (form 303) every month and electronically.
    • Submit the withholding tax forms every month, electronically by means of a recognised electronic certificate, within the first twenty calendar days of each month.
    • Keeping the registry books by means of the electronic supply of invoicing records (SII).
    • Calculate the instalments of corporate income tax according to the method provided for in the law. If the net turnover during the twelve months prior to the date on which the tax period begins has exceeded €6,000,000, these payments must be submitted online by means of a recognised electronic certificate, on form 202, using the calculation method provided for in section 3 of article 40 of the Corporate Income Tax Act.
    • Receive administrative communications and notifications by electronic means.
    • If the company must file any of the following forms of self-assessments and informative declarations, electronic filing via the Internet is obligatory, using a recognised electronic certificate: 038, 156, 159, 165, 170, 171, 179, 180, 181, 182, 184, 187, 188, 189, 190, 192, 193, 194, 195, 196, 198, 199, 200, 217, 220, 221, 231, 232, 270, 280, 282, 289, 290, 291, 296, 345, 346, 349, 411, 430, 480, 611, 616 y 720.

    At Confianz we help you to properly manage your company in accordance with Spanish tax regulations. Our team is prepared to provide solutions tailored to the specific tax needs of each client.

  • These are the features of the mandatory LGTBI Plan for companies with more than 50 employees

    Law 4/2023 established 2 March 2024 as the deadline for all companies with more than 50 employees to have an LGTBI Plan in place. However, the specific content of this plan has not been specified until now, with the regulatory development of Article 15.

    On 26 June, an important agreement was signed between the Ministry of Labour and the Social Agents for equality and non-discrimination of the LGTBI collective in the workplace, which establishes the specific measures to implement the LGTBI Plan. We still have to wait for the approval by the Council of Ministers and the publication of the regulatory text in the Official State Gazette, but we finally know the terms that will have to be taken into account for the implementation of the LGTBI Plan. We break them down in this article.

    Which companies are obliged to have an LGTBI Plan?

    All companies with more than 50 employees are obliged to have an LGTBI plan. The calculation is made considering the entire workforce of the company on the last day of June and December of each year, regardless of the type of contract, the number of workplaces or the type of contract.

    The obligation remains in place even if the number of employees falls below 50 once the special negotiating body has been set up and until the end of the term of the plan or, failing that, for four years.

    What should it include?

    The LGTBI Plan must include a planned set of measures and resources to achieve real and effective equality for LGTBI people.

    It should specifically include an anti-harassment and violence protocol identifying preventive practices and mechanisms for detecting and dealing with harassment.

    How to create it

    The measures included in the LGTBI Plan must be agreed through collective bargaining and have been agreed with the legal representatives of the workers.

    First the negotiating body will draw up a status report based on the documentation provided by the company. This documentation shall include, without exception, a work climate survey on LGTBI rights at work.

    The plan should follow this structure:

    • Identification of the parties involved in the negotiation.
    • Personal, territorial and temporal scope.
    • Qualitative and quantitative objectives of the planned measures.
    • Description of specific preventive and reactive measures, timeframe for implementation and prioritisation, as well as design of indicators to assess progress.
    • Timetable of actions for implementation, monitoring and periodic evaluation. Identification of the necessary means and material or human resources.

    How long will it be in force?

    The duration of the LGTBI Plan shall not exceed 4 years.

    Penalties foreseen

    Law 4/2023 provides for penalties of between 200 and 150,000 euros for individuals or companies that violate LGTBI rights. In addition, companies that fail to comply with their obligation will not be eligible for government contracts and could be forced to cease their activity for three years.

    At Confianz we help you to implement your LGTBI Plan 

    At Confianz we provide you with all the labour law services that your company requires. Therefore, we help you to create the LGTBI Plan and we give you the necessary guidelines to implement it in a satisfactory way according to the current regulations. For more information, contact us!