When a company in Spain receives an employment claim, the dispute does not usually begin directly in court. In many cases, it is mandatory to first attend the SMAC (Mediation, Arbitration and Conciliation Service).
This body acts as a preliminary stage in which the company and the employee attempt to reach an agreement before going to the Labour Court. The aim is to resolve the dispute more quickly and, where possible, avoid judicial proceedings.
The conciliation stage begins with the filing of the conciliation claim form (papeleta de conciliación). This document identifies the parties, summarises the dispute and sets out the employee’s claim.
Filing the claim form also has important effects on the legal time limits for bringing a claim. In general terms, these time limits are regulated under Article 59 of the Spanish Workers’ Statute and, for certain proceedings, under Law 36/2011 regulating the labour courts jurisdiction. Specifically, Article 65.1 of this law establishes that requesting conciliation interrupts the limitation period or suspends the expiry period applicable to the claim. This is especially relevant in matters subject to short deadlines, such as dismissals.
Conciliation hearing before the SMAC
Once the claim form has been filed, the SMAC summons both the company and the employee to a conciliation hearing. This is not yet a trial, but rather a formal meeting in which both parties may negotiate and assess the possibility of reaching an agreement.
In many cases, this stage helps reduce costs, save time and avoid longer court proceedings.
Several outcomes are possible after the conciliation hearing:
- If an agreement is reached, it is recorded in official minutes and the dispute may be resolved
- If no agreement is reached, the employee may file a lawsuit before the Labour Court
- One of the parties may also fail to attend the hearing.
In the latter case, Article 66 of Law 36/2011 establishes that if the claimant does not attend and cannot justify the absence, the claim form will be deemed not filed and the case will be archived. If the respondent, having been duly notified, fails to attend, the conciliation attempt will be deemed completed without effect.
In addition, the judge may impose legal costs of up to €600 if the final judgment substantially matches the claims previously included in the conciliation claim form.
For this reason, any company employing staff in Spain should understand how the SMAC procedure works and act quickly from the outset. Proper management of this stage can help address the dispute more effectively and support better legal decision-making.
