It is suggested that the government will work “soon” to correct the “anomaly” in Spain where unfair dismissal is “too cheap” and compensation is capped
The second vice president, Yolanda Díaz, raised in Congress this Wednesday that her goal is to change the conditions of dismissal in Spain and increase current compensation, as she believes they are “too cheap” and not meet the ultimate goal of being deterrent. In addition, he pointed out that the government will “soon” work on this reform of severance costs that was not addressed in the labor reform passed just over a year ago, as it was a red line for the employer.
“In Spain it is too cheap to fire, it pays, even if it is legal,” he defended before the parliamentary groups in response to a question from ERC. Díaz thus took his position a step further by establishing a dismissal à la carte that pays a different compensation depending on the personal circumstances of the employee, similar to what is considered in Europe, and that allows to “deterrent” and “repair the damage done.” “These people are victims and it is the duty of this Chamber and of the Spanish politicians that they have a job and receive the necessary compensation in case of violations of the law,” he said.
In this sense, the minister drew attention to the fact that in Spain there is hardly any difference between objective dismissal, which is compensated with 20 days worked per year, and unfair dismissal, which requires compensation of 33 days worked per year. “This small difference is a real perversion of the system, which means that there is no effective protection against abuse,” denounced Díaz, who stressed that this is a sign of a “pathology” in the Spanish labor market, since, as he has said Spain is the few countries in Europe with a comparable compensation system.
In addition, he stressed that Spain is one of the few countries with capped compensation and that the most representative trade unions in the country have launched collective claims to “warn” whether Spain complies with Article 24 of the European Social Charter or not. The minister also stressed that several judgments in the Spanish courts, the last of which last month, show that the country is not complying with this article.
“Soon it will be Spain’s turn,” proclaimed the vice president, assuring ERC that the executive will “comply with whatever the Social and Economic Rights Committee decides” regarding Article 24 of the European Social Charter.
Source: La Verdad

I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.