Companies and businesses grow, that’s what they explain in economics courses. An increase in the number of employees can lead to risks and problems, they don’t explain that much. The growth of the company increases its complexity, obligations, regulations, … obligation to audit, obligation to file taxes more frequently, …
A basic component of any company is the human capital, which also happens to be one of the most complex components. In this circular we summarise important facts to take into account when a business grows and the problems that can arise when there is an increase in the number of employees.
What do we need to take into account when there is an increase in staff numbers?
There are several important milestones in the labour field:
- when it reaches 6 workers,
- when it reaches 10 workers,
- when it reaches 50 workers
In small companies, the management negotiates quite freely with the workers and in an almost individual, personal and direct way in most cases. When it grows, this individual negotiation begins to fade away.
Staff delegates in the workforce
Companies with 6 or more workers can have personnel delegates; compulsorily from 10 and voluntarily (at the will of the workers) between 6 and 9. The number of delegates will be 1 or 3 depending on whether the company has up to 29 workers or more.
Beyond the figure of 49 workers, a works council must be formed, which is usually one per work centre (with special rules for small centres) or inter-centre depending on the Collective Bargaining Agreement that applies.
How many members can the works council have? Between 5 and 75.
It should be noted that in both cases the workers’ representatives have remunerated obligations, i.e. their work as representatives is paid for by the company. In addition, the law provides them with certain special protections.
I have a business, what does it matter to me?
Very much so. The mandatory nature of worker representation is at once an obligation, a right, a risk but also an opportunity. It affects the company-employee relationship, bargaining with employees and the overall dynamics of human capital. This effect can be negative or positive depending on how these relationships are managed.
It all seems very complicated.
It should always be borne in mind that:
- Between 6 and 10 workers, the process of electing the delegate can interrupt the daily work considerably.
- From 10 and above, we know that between 1 and 3 workers will dedicate part of their working day to tasks that are independent of their job, to a greater or lesser extent.
- From 50 or more employees, this figure rises to between 5 and 75 people.
That is what we are there for.
Our recommendation is always to manage HR in a preventive way, facilitating a good relationship and detecting in time the people who do not fit with the corporate culture or team climate.
In a workforce of less than 10 people there is very little complexity. If at any time there is talk of “workers’ representative” or a “works council”, contact us immediately so that we can facilitate the process so that it is not a problem but an opportunity.
In businesses with 10 or more employees, you can consult us at any time to review the status of your employee representation.
We hope this article on the issues that can arise when there is an increase in staff is of interest to you. Our team of employment lawyers can help you turn human resources into a source of competitive advantage for your business.