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SOCIAL ECONOMY LAW

The current configuration of the Spanish Social Economy has been marked by the approval of the Ley 5/2011, de 29 de marzo, de Economía Social, which undoubtedly represented an unprecedented turning point for the recognition, visibility and development of the Sector, both within Spain and the European Union.

Ley 5/2011, de 29 de marzo, de Economía Social

The Law defines the Social Economy as the set of economic and business activities carried out in the private sphere by those entities that, in accordance with the following principles, pursue the general economic or social interest, or both.

Likewise, the Law establishes that the following entities are part of this diverse business group that is the Social Economy:

  • Cooperatives
  • Worker-owned Societies
  • Mutualities
  • Insertion Companies
  • Special Employment Centers of Social Initiative
  • Fishermen's Guilds

The main regulatory framework for which is found in this section.

COOPERATIVES

The cooperative is a society constituted by persons who associate, in a free membership and voluntary resignation regime, for the realization of business activities, aimed at satisfying their economic and social needs and aspirations, with a democratic structure and functioning, in accordance with the principles formulated by the international cooperative alliance.

Ley 5/2011, de 29 de marzo, de Economía Social

STATE LEGISLATION

LEGISLATION AUTONOMIC

ANDALUSIA

ARAGON

ASTURIAS

BALEARIC ISLANDS

CANTABRIA

CASTILLA LA MANCHA

CASTILE AND LEON

CATALONIA

VALENCIAN COMMUNITY

EXTREMADURA

GALICIA

LA RIOJA

MADRID

NAVARRE

MURCIA

BASQUE COUNTRY

WORKER-OWNED SOCIETIES

Worker-owned societies are those corporations or limited liability companies that are subject to the following requirements:

a) At least a majority of the capital stock must be owned by workers who render personally and directly remunerated services under an employment relationship for an indefinite period of time.

b) None of the partners is the holder of shares or equity interests representing more than one third of the capital stock, unless:

The worker-owned association is initially constituted by two worker-members with an indefinite term contract, in which both the share capital and the voting rights will be distributed fifty-fifty, with the obligation that within a maximum period of 36 months they must comply with the limit established in this section.

In the case of partners that are public entities, entities with majority public participation, non-profit entities or social economy entities, in which case the participation may exceed this limit, without reaching 50% of the capital stock.

c) The number of hours/year worked by workers hired for an indefinite period of time who are not shareholders should not exceed 49% of the total number of hours/year worked in the labor company by all the worker-members.

LEGISLATION

MUTUALITIES

Mutual insurance companies are insurance entities that carry out a complementary activity to the Social Security system.

These are non-profit, democratically structured and managed societies of individuals, which carry out a voluntary insurance activity, complementary to the public Social Security welfare system. In certain cases, mutual insurance companies carry out an alternative activity to the public system, becoming an interesting experience in the management of an alternative benefit to the public system.

The mutuality as a specific form of insurance entity, lies, in short, in the coincidence between the figures of the insured and the member or mutualist. That is to say, in a mutual company the principle of identity or unity, characteristic of participation companies, is fulfilled, and the main activity is carried out exclusively with the member-policyholders. This form of democratic management, in which the person of the insured coincides with that of the policyholder, means that the premiums paid go entirely to guarantee the benefits of the insured group, there being a statutory and not a contractual relationship.

STATE LEGISLATION

AUTONOMIC LEGISLATION

CATALONIA

VALENCIAN COMMUNITY

MADRID

BASQUE COUNTRY

INSERTION COMPANIES

The insertion companies are born as an instrument to fight poverty and social exclusion. They are business initiatives that combine business logic with labor insertion methodologies. They are companies that are not outside the conventional processes of the economy, since they produce goods and services, improve the environment, enhance services to people and promote quality of life, being profitable and competitive. In addition to valuing their economic profitability, it is very important to highlight their profitability in social aspects, since the beneficiaries cease to be passive and dependent people and contribute to society everything it had denied them.

STATE LEGISLATION

AUTONOMIC LEGISLATION

ANDALUSIA

ARAGON

BALEARIC ISLANDS

CANARY ISLANDS

CATALONIA

CASTILLA LA MANCHA

CASTILE AND LEON

LA RIOJA

MADRID

NAVARRE

BASQUE COUNTRY

VALENCIAN COMMUNITY

SPECIAL EMPLOYMENT CENTERS

Special Employment Centers (CEE) are companies that were created as an employment formula for people with disabilities in the 1982 Law for the Social Integration of People with Disabilities (LISMI). Therefore, at least 70% of their staff must be made up of people with a disability equal to or greater than 33%.

Its legal definition states that "EWCs are those whose main objective is to perform a productive activity of goods or services, participating regularly in market operations, and whose purpose is to ensure gainful employment for people with disabilities; at the same time they are a means of inclusion of the largest number of these people in the ordinary employment regime. Likewise, the special employment centers must provide, through the support units, the personal and social adjustment services required by disabled workers, according to their circumstances and in accordance with what is determined by regulation" (art. 43 General Law on the Rights of Persons with Disabilities).

Special Employment Centers of Social Initiative (CEEIS)

Special Social Initiative Employment Centers (CEEIS) are considered to be those that are promoted and owned by more than 50%, directly or indirectly, by one or more entities, whether public or private, that are non-profit or that have their social nature recognized in their Bylaws, whether they are associations, foundations, public law corporations, cooperatives or other social economy entities, as well as those whose ownership corresponds to commercial companies in which the majority of their capital stock is owned by any of the entities mentioned above, cooperatives of social initiative or other entities of the social economy, as well as those whose ownership corresponds to mercantile companies in which the majority of their capital stock is owned by any of the aforementioned entities, either directly or indirectly through the concept of controlling company regulated in art. 42 of the Code of Commerce, and always in the case of those whose ownership corresponds to mercantile companies in which the majority of their capital stock is owned by any of the aforementioned entities, either directly or indirectly through the concept of controlling company regulated in art. 42 of the Code of Commerce, and provided that in all cases in their bylaws or in a corporate agreement they are obliged to reinvest all of their profits for the creation of employment opportunities for people with disabilities and the continuous improvement of their competitiveness and their social economy activity, having in any case the power to choose to reinvest them in the special employment center itself or in other special employment centers of social initiative.

REGULATIONS

FISHERMEN'S GUILDS

The Fishermen's Guilds are non-profit public law corporations, representing the economic interests of fishing vessel owners and workers in the extractive sector, which act as consulting and collaboration bodies for the competent administrations in matters of maritime fishing and management of the fishing sector, whose management is developed to meet the needs and interests of their members, with the commitment to contribute to local development, social cohesion and sustainability.

REGULATIONS