The Diplomat
The European Committee of Social Rights (ECSR) has issued a resolution in which it rules against the Spanish regulation of compensation for unfair dismissal, considering that it “violates” article 24 of the European Social Charter.
The Committee’s resolution, advanced by UGT a few days ago and picked up yesterday by the Europa Press agency, establishes that compensation for unfair dismissal must be a deterrent so that the employer does not break the law and be compensatory for the dismissed worker.
The ECSR, composed of fifteen members elected by the Committee of Ministers of the Council of Europe, has as its main function the determination of whether or not national legislation and practices in the States parties are in conformity with the European Social Charter.
In Spain, the maximum limit of compensation in the event of unfair dismissal cannot exceed 33 days’ salary per year of service, with a maximum limit of 24 monthly payments. In the case of dismissal for objective reasons and collective dismissals for economic, organisational, technical or productive reasons, the maximum limit cannot exceed 20 days’ salary per year worked, with a maximum limit of 12 monthly payments.
In the opinion of the Committee, the predetermined compensation may serve “as an incentive for the employer to dismiss workers unfairly”. “In fact, in certain cases, maximum compensation limits could induce employers to make a pragmatic estimate of the financial burden of unfair dismissal on the basis of a cost-benefit analysis. In some situations, this could encourage unfair dismissals,” it added.
