The Supreme Court closes the door on additional compensation for unfair dismissal
The issue arose after several lawsuits in which workers sought additional compensation on the grounds that the statutory compensation (33 days per year of service with a maximum of 24 monthly payments) did not adequately compensate for the damage suffered. They based their claims on the European Social Charter (ratified by Spain in 2021), which requires “adequate” compensation in cases of unfair dismissal.
Supreme Court decision
The Supreme Court, in a ruling handed down by the Social Chamber, has reiterated that the European Social Charter is not directly applicable by national courts in matters of employment compensation. The ruling unifies doctrine after ruling on several lawsuits seeking to extend compensation beyond what is provided for in Spanish law.
According to the ruling, only the Spanish legislature can modify the current framework to bring it into line with European standards. Consequently, judges cannot award additional compensation unless expressly authorised by law.
Applicable legislation
- Workers' Statute (Royal Legislative Decree 2/2015, of 23 October): Art. 56 regulates compensation for unfair dismissal (33 days' salary per year of service, with a maximum of 24 monthly payments).
- European Social Charter (revised, 1996; ratified by Spain in 2021): Art. 24 recognises the right to adequate compensation or other appropriate redress in the event of unjustified dismissal.
- Spanish Constitution (1978): Articles 35 and 38 (right to work and freedom of enterprise), in relation to Article 24 (effective judicial protection).
Practical consequences
The ruling puts a stop to the possibility of obtaining additional compensation through the courts alone and reaffirms the predictability of the current system. At the same time, it keeps open the political and social debate on whether the fixed compensation meets the European standard of “adequate redress” and whether legal reform is appropriate.
European overview: Minimum compensation and trends (brief summary)
Comparative European overview
France: minimum compensation starts at one month's salary for very low seniority, increasing with seniority to thresholds that can exceed 12 months according to the Macron scale. Judges have leeway to adjust the amount upwards based on the worker's age, the difficulty of finding new employment and the specific damage suffered, which shows a trend towards personalised compensation.
Italy: the minimum reference is around two months' salary, with progressive increases depending on seniority and specific circumstances, up to a maximum of 24 months when the dismissal is unjustified. Judicial practice allows for additional increases in aggravated cases, following a flexible approach.
Netherlands: the “transitievergoeding” is approximately one third of the monthly salary for each year worked from the first day of the contract. In addition, the courts may award extra compensation (“billijke vergoeding”) in cases of particularly reprehensible conduct on the part of the employer, thus combining a basic formula with a bonus for malpractice.
Norway: the usual reference ranges from 3 to 6 months' salary, depending on seniority and personal circumstances. Judges have broad discretion to adjust the amounts and include moral damage and re-employment difficulties, reinforcing the tendency to individualise each case.
| STS 3387 2025 de 16 Julio 2025 | 444 KB |
