The European Committee of Social Rights (ECSR) based in Strasbourg has issued a favorable resolution regarding the collective complaint filed by UGT in March 2022 concerning the cost of unfair dismissals. As confirmed by the union on Monday, the document states that Spanish legislation does not comply with Article 24 of the European Social Charter, which Spain ratified in July 2021. Although the details of this decision were leaked in March, the official text is expected to be released next Monday.
UGT argues that the resolution clarifies that the fixed compensation of 33 days’ pay per year worked, imposed on companies in the case of unfair dismissals, is inadequate to cover the actual damages experienced by dismissed workers. It also notes that this compensation lacks sufficient deterrent effect for employers.
According to UGT, the ECSR asserts that the Spanish compensation system fails to account for critical factors such as the dismissal’s impact on a worker’s career, their personal circumstances, and potential moral damages. Furthermore, the resolution highlights that the effective absence of "salary during processing" significantly diminishes the compensatory and deterrent effectiveness of the indemnity. These salaries are those that companies were required to pay workers while judicial proceedings related to unjustified dismissal were ongoing, but the 2012 labor reform eliminated this requirement, except in cases where the worker is reinstated.
The ruling also criticizes the fact that, while the option for reinstatement exists after an unfair dismissal, it is "rarely" implemented in practice in Spain. This undermines workers’ chances of regaining their jobs. Data from the OECD supports this view, indicating that there is less protection for unfair dismissals in Spain compared to other countries.
This ongoing issue highlights the need for reevaluation of labor rights and policies in Spain, particularly concerning the treatment of unfair dismissals and worker protections. For further insights on labor rights in Europe, you can explore resources from the European Trade Union Confederation.
Image and News Source: https://www.infobae.com/espana/2024/07/22/estrasburgo-falla-que-el-coste-del-despido-improcedente-no-es-justo-y-critica-la-derogacion-de-los-salarios-de-tramitacion/
