Spain’s Supreme Court has issued a key ruling that clarifies an important point in employment law: severance pay for unfair dismissal, as set out in Article 56.1 of the Workers’ Statute, cannot be increased by the courts, even when there are special circumstances in a specific case.
The decision addresses the debate around the right to “adequate compensation” as mentioned in ILO Convention 158 and Article 24 of the Revised European Social Charter. The Court makes it clear that these texts do not have direct effect or binding force in Spanish law. Their application would require specific legislative action.
It also clarifies that decisions from the European Committee of Social Rights (ECSR), which oversees compliance with the Charter, are not enforceable and do not bind national courts — unlike rulings from the European Court of Human Rights (ECHR) or the Court of Justice of the European Union (CJEU), which are binding.
Ultimately, the ruling strengthens the current framework by confirming that statutory severance rules offer legal certainty and consistency in unfair dismissal cases.
Wondering how this could affect your company or employment relationships? At addwill, we are here to help you assess the impact.
For more information or legal advice, please contact our Employment Law Department. You can call us at +34 93 487 52 00, email us at comunicacio@addwill.eu, or click here.