The European Committee of Social Rights (ECSR) concluded in a decision Monday that Spanish legislation does not provide adequate protection for workers facing job dismissal without a legitimate reason and thereby breaches the Revised European Social Charter.
In a ruling regarding the collective complaint Unión General de Trabajadores (UGT) v. Spain, Complaint No. 207/2022, in which the union claimed that the mechanism of compensation for unfair dismissal does not allow for adequate compensation to cover the damage suffered, the European Committee of Social Rights (ECSR), on 28 March 2024 by 13 votes to 1, found that Spanish law violates Article 24. b of the Social Charter that ensures “ the right of workers whose employment is terminated without just cause to adequate compensation or other appropriate relief”. The ECSR believes that the compensation amounts established by Spanish law are not high enough to compensate for the damage. The Committee also noted that any restrictions on the amount of compensation that prevent compensation for proportionate harm are contrary to the Social Charter.
The European Social Charter is a Council of Europe treaty, signed in Turin on October 18, 1961 and later amended in 1996, which guarantees a wide range of everyday human rights, including those related to employment and social security. It places special emphasis on the protection of vulnerable persons and requires that the enjoyment of the rights defined therein be guaranteed without discrimination. The European Committee of Social Rights is the Charter’s monitoring body, which conducts procedures such as national reports and collective complaints to assess the compliance of signatory states with their obligations under the Charter.
Spain approved the European Social Charter in 1980. In 2021, it endorsed the Revised Charter, and in 2022, it ratified the Additional Protocol Providing for a System of Collective Complaints.
Regulation of Spanish labor takes place following Spanish national legislation, which includes Labor Statute No. 2/2015, Law Governing Social Jurisdiction No. 36/2011, Civil Code No. 206/1889, and case law, as well as per international norms and standards.
According to national legislation, an employee may demand termination of an employment contract in case of significant changes in working conditions, non-payment or permanent delays in wages, or a serious violation of the employer’s obligations. Objective reasons for termination of the employment contract include non-compliance of the employee with the position, technical changes in the position, liquidation of the position, and others. Disciplinary dismissal may take place in cases of gross violation of labor duties by an employee. If the dismissal is deemed unfair, the employer can choose between reinstating the employee or paying compensation. The dismissed employee is entitled to wages for the period from dismissal to renewal or employment for another job. In case of illegal dismissal of an employee, the employer is obliged to compensate the employee for his/her salary.
Judicial practice also shows that the courts award additional compensation in case of violation of fundamental rights and freedoms, but the amount of compensation may vary depending on the circumstances of the case and evidence.
