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The Supreme Court of Spain has issued a landmark ruling in labour law:
Unfair dismissal compensation as regulated under Article 56.1 of the Statute of Workers cannot be increased by judges, even when considering the particular circumstances of each case.
This decision by the high court has a clear objective, which is to strengthen legal certainty, avoiding variable or subjective criteria in each judicial proceeding.
Moreover, it aligns with the positions already adopted by other European courts, such as the French Supreme Court and the Italian Constitutional Court.
These have also upheld the validity of fixed compensation schemes.
Does this violate international law?
The Supreme Court responds
The ruling of unfair dismissal compensation also rejects the claim that Spanish legislation on dismissals violates International Conventions, specifically Article 10 of ILO Convention No. 158 and Article 24 of the Revised European Social Charter.
The Supreme Court clarifies that, although these international texts refer to the need for “adequate compensation,” they do not impose a specific amount and are not directly applicable within the Spanish legal system.
Therefore, they do not create enforceable rights for unfair dismissal compensation directly before the courts, nor do they allow for challenging the sufficiency of the compensation established by law.
European Committee of Social Rights: no binding legal effect in Spain
A particularly relevant aspect of this ruling is the Supreme Court’s conclusion regarding the European Committee of Social Rights (ECSR).
It determined that its decisions are not binding.
This statement comes after the ECSR found that Spanish legislation violated the European Social Charter by establishing an unfair dismissal pay limit.
However, the Supreme Court argues that the ECSR is not a judicial body, and therefore, its decisions do not have the nature of court rulings.
This differs from those of the European Court of Human Rights or the Court of Justice of the European Union.
As a result:
- Its resolutions are not enforceable
- They are not directly applicable between individuals
- They do not bind domestic courts of the member states
Legal certainty and uniform application of the law
In summary, the Supreme Court insists that, in the interest of legal certainty, it is not possible to apply compensation criteria other than those established in Article 56.1 of the Statute of Workers.
This hinders workers from “fighting” for unfair dismissal compensation in court.
This approach guarantees that unfair dismissal compensation is applied uniformly to all workers, avoiding discrepancies and offering clarity for both employees and employers.
Specialised legal advice with Delaguía y Luzón
At Delaguía y Luzón, we support both companies and workers in all matters related to dismissal and the interpretation of the labour law framework.
If you need personalised legal advice or have questions about how this Supreme Court ruling on unfair dismissal compensation may affect you, you can find more information about our services on our main website or contact us directly.