WAGES GUARANTEE FUND (FOGASA)
| SPAIN |
| FONDO DE GARANTIA SALARIAL (FOGASA) WAGES GUARANTEE FUND (FOGASA) |
Fund modelled on similar European institutions, set up in Spain in 1976 to guarantee payment of wage/pay and compensation for termination of the employment contract when an enterprise becomes bankrupt or is in financial difficulties. Although its primary function is to insure accrued entitlements (it has sometimes been referred to as a form of pay insurance), it has also played an important role in the reorganization of enterprises and staffing adjustment , since it has often borne the cost of redundancies. The name refers both to the fund created for this purpose from employers' contributions and to the autonomous body dependent on the Ministry of Labour which is responsible for its administration. It essentially complies with EEC Directive No. 987/1980.
Please note: the European industrial relations glossaries were compiled between 1991 and 2003 and are not updated. For current material see the European industrial relations dictionary.