The government defended its position before the court regarding Spain’s existing severance framework and the compensation owed in cases of wrongful termination. The current system, in force in Spain and carried into the present administration, has been the subject of scrutiny by the European Committee of Social Rights, which has pressed for a higher compensation amount. A decision on whether to increase severance pay could reshape the protection offered to workers if the challenge succeeds. The UGT union has signaled that this complaint may translate into a new law if a favorable ruling is achieved, as stated by its secretary general at a press briefing. (Source: UGT)
From the government’s perspective, the Spanish method for calculating severance is aligned with the protection standards expected in the social framework. With this response, the union views the ongoing iteration of legal changes as unlikely before the end of the current legislative term. The most recent figures from the Ministry of Labor indicate that the average severance payment in Spain for 2021 stood at 11,416.7 euros. (Source: Ministry of Labor)
Madrid’s authorities presented their case this week ahead of a formal request before European courts, with the government and the CEOE employers’ association acting as the main parties in dispute. Both entities are central to the ongoing dialogue, and their involvement underscores the mandatory nature of the European body’s decision on whether the amount companies must pay for wrongful termination adequately protects workers. Fernando Lujan, deputy secretary general of the UGT, expressed disappointment, saying the government’s stance did not anticipate a continuation of the existing response to unfair dismissals. (Source: UGT)
The government, via the State Prosecutor’s Office of the Ministry of Justice, argues that the current framework already provides sufficient guarantees for workers. The position points to recent expansions in the grounds for invalidity and other safeguards, including possibilities to prove that termination occurred during medical leave, and adjustments that may reflect higher wage considerations or unemployment benefits. (Source: State Prosecutor’s Office)
The debate over the cost of layoffs in Spain has intensified in recent weeks. A landmark ruling from the Supreme Court of Catalonia recognized a worker’s entitlement to a higher-than-minimum severance award, highlighting perceived gaps in protection. Catalan judges described certain sentences as insufficiently protective, fueling further calls for reform. In the political arena, different actors have weighed in. The second vice president has labeled dismissal costs as very low and signaled openness to changing the current terms. Yet, when a proposal to enhance severance to 45 days per year of service was brought forward, the coalition partner opposed the measure, maintaining a slower pace for reform. The government’s response aligned with its stance before European authorities, reinforcing continuity rather than rapid change. (Source: Catalan judiciary and coalition statements)
With divergent views rattling the executive branch and opposition from the majority partner, UGT’s expectations for a swift shift in policy have diminished, especially as the legislative term nears its conclusion. The union’s secretary general stressed a limited sense of optimism about near-term changes and suggested that the topic could gain broader attention in forthcoming electoral debates in Turkey, where the workforce’s defining choices may shape the policy landscape rather than quick parliamentary action. (Source: UGT)