Yolanda Díaz, the Second Vice President and Minister of Labour, signaled an intent to recalibrate how layoff terms are handled before the current legislature adjourns. She argued that adjustments to compensation could help borrowers and workers facing dismissal, highlighting how this approach might affect families and the broader workforce. Her comments came as she framed the issue as part of a broader effort to balance swift corporate decisions with protections for workers who lose their jobs under existing rules.
Within United We Can, Díaz is backed by the government’s stance on using the first and last resort judgments in a handful of cases that relate to the European Social Charter. The aim is to raise severance for workers who have less tenure with their employer. A representative body in Catalonia, the High Court of Justice, described the baseline severance amount tied to four months of pay for a dismissed employee as insufficient in the eyes of many lawmakers and labor advocates.
The dismissal issue has loomed large in discussions of Spain’s labor reforms, a point of contention since changes originally enacted in 2012 carried forward by successive administrations. The reform era introduced rules requiring a company to compensate a worker for the period between dismissal and the resolution of a court case if an appeal or ruling favored the employee. Critics argue those provisions failed to deter layoffs and did not adequately protect workers, especially those with shorter service records.
On Wednesday, during questions from the ERC parliamentary group, Díaz reiterated a willingness to explore the full range of dismissal terms before the legislative session ends. She also noted the pending complaint from labor unions with European authorities, pressing Madrid to revise dismissal terms to ensure stronger guarantees for workers. Her remarks underscored a push for harmonizing national practices with European expectations on social protections and due process.
Labor officials who align with the European perspective have urged a rethink of how layoffs are framed. They emphasize that severance should serve as a genuine deterrent for companies while ensuring that any compensation accurately reflects the damage suffered by workers and their families. The dialogue continues as unions push for improvements that would expand protections while maintaining the flexibility some employers say is necessary for competitiveness. The overall aim is a fairer system that reduces abrupt terminations and provides clearer, more reliable outcomes for workers and employers alike.