In this way, Europe agrees with UGT and concludes that compensation for unfair dismissal neither deters nor protects the employee. Although the ruling is not binding on the Spanish executive, it opens an important door for judges to rule on this case.
The European Committee of Social Rights has ruled against Spain, finding that Spanish regulations are at stake severance pay inappropriate is contrary to the European Social Charter. In a resolution responding to a complaint filed by trade union UGT In March 2022, it was concluded “by 13 votes to 1 that there had been a violation of Article 24 of the European Social Charter” by Spain.
In concrete terms, the European advisory body stipulates that the current compensation for unfair dismissal “is not high enough in all cases, to repair the damage suffered by the victim (the dismissed person) and to prevent the employer from taking such action.
Although the ruling is not binding on the Spanish executive, which is not obliged to change the law in the sense stated in the resolution, it opens an important door for judges to rule in this direction in future rulings.
After taking note of the organization’s full ruling, UGT issued a statement urging the Spanish government, unions and employers to sit down and analyze an adaptation of this resolution to Spanish law, allowing it to be complied with.
The complaint formulated by UGT and in which the Government of Spain was brought before the above-mentioned European Commission accused the executive of violating its regulation on compensation for dismissal, the above-mentioned Article 24 b of the European Social Charter, which provides “the right of workers whose employment relationship is terminated without just cause to adequate compensation or other appropriate relief.”
However, for UGT, Spanish law does not allow ‘victims of dismissals obtain appropriate compensation for the damage suffered without good reason“as stated in his complaint to the Community body, which now he has formally agreed.
The Second Vice President and Minister of Labor, Yolanda Diazannounced last week that it will call on trade unions and employers to do so agree to changes to compensate for unfair dismissal in Spain. “It is another element that will be open to reform and that, as always, will also be at the table of social dialogue and will accommodate European legislation,” he noted.
Spanish law
In Spain, the maximum limit of compensation for wrongful dismissal applies may not exceed 33 days’ salary per year of service, with a maximum of 24 monthly payments. In the event of dismissal for objective reasons and collective dismissal for economic, organizational, technical or productive reasons, the maximum limit may not exceed 20 days’ pay per year worked, with a maximum limit of 12 monthly payments.
Although the Spanish government defends before the Commission that one of the objectives of establishing maximum remuneration limits in legislation is to provide higher remuneration limits legal certainty for both parties to the employment contract, the European body points out that “it cannot be ruled out that the pre-determined compensation may rather serve as an incentive for the employer to dismiss employees unfairly.”
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
