Europe scolds Spain again for laying off workers too cheaply.

BarcelonaThe European Committee of Social Rights (ECSR) is once again raising eyebrows in Spain, considering that dismissals in the Spanish state are too cheap. This body falls under the Council of Europe and is responsible for ensuring that Member States comply with the European Social Charter. In an opinion published this Friday, the ECSR has once again made it clear that compensation paid after a worker loses their job is neither sufficient to compensate for the harm suffered nor to deter the employer from firing them.

This text is in response to a lawsuit filed by the CCOO (Workers' Workers' Union) in November 2022 and reaffirms what the organization He also warned after another similar procedure initiated by UGT.

In Spain, the maximum compensation for unfair dismissal is 33 days per year worked (with a limit of 24 months), while for objective dismissals it is 22 days per year (with a limit of 12 months). "These limits can encourage unfair dismissals and do not allow the courts to consider the individual situation of the worker," the CESD emphasizes.

Furthermore, the Committee recalls that, before the 2012 labor reform, the 42-month ceiling was higher, but the new limit is insufficient and violates the Charter. Although some judgments have recognized the possibility of paying additional compensation to dismissed employees, the general practice of Spanish courts does not allow this, which also violates the Treaty.

On the other hand, although the Charter does not explicitly mention the reinstatement of the dismissed worker, the CESD believes it should be part of the possible solutions as an alternative to compensation. In Spain, reinstatement is only mandatory if the dismissal is void, not because it is unfair. In the case of unfair dismissal, the company can choose between compensating or reinstatement (except in the case of union representatives, who are the ones who choose which option they prefer). Thus, the courts cannot impose reinstatement. "The Committee considered that other appropriate remedies should include reinstatement as one of the remedies available to national courts in cases of dismissal without valid cause. The possibility of granting reinstatement recognizes the importance of returning the employee to an employment situation no less favorable than the one they previously enjoyed," it states.

Fraudulent temporary contracts

Finally, the CEDS also criticizes Spain for the situation with fraudulent temporary contracts and considers that compensation in these cases remains limited, which also violates the Charter. The organization points out that this particularly affects workers with temporary contracts in public administrations, as they receive lower compensation than expected in cases of unfair dismissal.

The general secretary of the CCOO (Working Workers' Commissions), Unai Sordo, described this ruling as "historic" "since it questions the dismissal model and the dismissal regime in Spain" and noted that the decision should pave the way for tripartite negotiations between the government, trade unions, and employers. Meanwhile, the second vice president of the Spanish government and Minister of Labor, Yolanda Díaz, confirmed this Friday that she will open a social dialogue table to address the regulation of unfair dismissal.