Samvardhana Motherson Subsidiary Fined Euro 65,000 Over Labor Practices in Spain
Samvardhana Motherson International Limited has received news regarding a penalty imposed on its indirect wholly owned subsidiary, SMRC Automotive Interiors Spain S.L.U, by the Department of Enterprise and Labour in Spain.The Labour Department levied a penalty totaling Euro 65,000 against SMRC Spain. This amount is equivalent to INR 7.08 million. The penalty notice was received by SMRC Spain on July 6, 2026, corresponding to the order date.
A breakdown of the financial details and the action taken is provided below:
| Particulars | Details |
|---|---|
| Fining Authority | Department of Enterprise and Labour - Spain (Labour Department) |
| Penalty Imposed | Euro 65,000 / INR 7.08 million |
| Date of Order Receipt | July 6, 2026 |
The penalty was issued following allegations concerning the types of contracts utilized by SMRC Spain during the year 2025. The notice stated that the subsidiary entered into temporary agency employment contracts with agencies that were deemed to correspond to structural needs rather than short-term requirements.
Regarding the operational impact, SMRC Spain has filed an appeal with the Labour Department concerning this matter. If the current appeal is dismissed, it is planned that a further appeal will be initiated with the courts in Spain. Management confirmed that there is no material impact of this penalty on the financials or operations of Samvardhana Motherson International Limited.
MOTHERSON Stock Price Movement
Samvardhana Motherson International Limited shares edged higher in the post-market close today, settling at ₹146.72 after gaining 0.47%. The stock saw a traded volume of 9.50 million and closed near its intraday high of ₹147.39.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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