When a conflict arises between a company and its employees, the last thing you want is a lengthy and expensive court case. This is where the SMAC process comes in. In this article, we’ll break down what the SMAC process entails, when it’s necessary, and how it can help avoid the stress and costs of legal proceedings. If you’re a business owner or HR manager, understanding the SMAC process can save you time, money, and a lot of headaches.
What is the SMAC process?
The SMAC process—which stands for Servicio de Mediación, Arbitraje y Conciliación (Mediation, Arbitration, and Conciliation Service)—is a mandatory preliminary procedure that takes place before a labor dispute can go to court in Spain. Its main goal is to reach an agreement between the employer and the employee without needing a trial, making it a quicker, cheaper, and less stressful alternative for both parties.
When is this process required?
The SMAC process is essential when there’s a conflict between an employee and their company, whether it’s due to dismissals, wage disputes, changes in working conditions, or any other employment-related issue. Under Spanish labor law, before an employee can file a claim in the Social Court, they must first go through the SMAC process. This is regulated by the Workers’ Statute.
Stages of the SMAC process
The SMAC process usually follows a few key stages, which are outlined below:
Filing the conciliation request
The process begins when the claimant—usually the employee—submits a “conciliation request” to the Mediation, Arbitration, and Conciliation Service (SMAC) in their region. This document outlines the facts and the claims the employee wishes to resolve.
Summoning both parties
Once the request is filed, SMAC will summon both the employee and the employer to attend the SMAC process, typically held within 15 days of the submission.
Holding the conciliation hearing
During the hearing, both parties have the chance to negotiate and reach an amicable agreement. If they do reach an agreement, a legally binding document is signed, thus avoiding the need for court intervention.
Outcome: With or without agreement
The outcome of the SMAC process can go one of two ways:
- With agreement: If both parties come to an understanding, the agreement is as binding as a court ruling, and both parties must comply.
- Without agreement: If no settlement is reached, the employee is free to take the dispute to the Social Court.
Why is the process important?
The SMAC process is crucial for resolving labor disputes quickly and cost-effectively. Going straight to court can lead to significant emotional, financial, and time-related burdens for both parties, while a successful conciliation through SMAC helps avoid these challenges.
In addition, when an agreement is reached, it is legally enforceable and faster than a court ruling. Even if no agreement is made, the SMAC process is a necessary step to proceed with a lawsuit, as the “no agreement” certificate is required to file a legal claim.
Consequences of the SMAC process
If an agreement is reached during the SMAC process, a document is signed, and it holds the same legal weight as a court decision. Both parties are legally required to fulfill the terms. If one party fails to comply, the other can request enforcement through the court system.
However, if no agreement is reached (no settlement), the employee can move forward with a lawsuit in the Social Court, following the specific deadlines for the type of claim involved.
Avoid risks with proper planning
The SMAC process is an essential tool for resolving labor conflicts in a fast and efficient manner. It helps both employers and employees avoid the costs and stress of a trial while offering fair solutions that benefit both parties.
At Euroaccounts, we provide expert labor advisory and consulting services for businesses. Our team of specialists can guide you through the entire SMAC process. If you manage a company or lead the HR department and need support to prevent labor issues, negotiate agreements, or ensure compliance, we’re here to help.
Don’t wait for conflicts to escalate—talk to our experts and safeguard your business. Contact us today.
