The Wage Opt-Out Clause in Spain

Abstract

The Spanish system of collective bargaining has been the object of important changes following the introduction of Law n. 1 of 19 May 1994; changes which have contributed to the most extensive modernisation process of the legal framework in the area of labour relations in Spain. This article is aimed at examining a specific and relevant aspect of this reform — the so-called wage opt-out clause (cláusula de descuelgue salarial). Indeed, in a context of wide decentralisation of collective bargaining, the new legislation makes it possible to avoid applying the wage system laid down at national level for those companies whose economic stability may be damaged by such a general system. The article focuses on the juridical nature and legal consequences of the application of the wage opt-out clause.