Spanish Court Rules on Payments in Kind

The Spanish Supreme Court has issued a ruling about the substantial modification of working conditions in the case of payment in kind. The Court held that a modification of such payments (for example, a discount of the products of the company for its employees) does not imply a substantial modification of working conditions. This change is highly relevant since to carry out a substantial modification of working conditions, the company has to comply with formal requirements that would otherwise not be necessary. Thus, the new Supreme Court ruling entitles companies to modify the payments in kind without taking into account the special process of substantial modification of working conditions.