Europe again rules that severance pay in Spain is neither "high enough" nor "dissuasive."

The European Committee of Social Rights in Strasbourg, a branch of the Council of Europe, is once again encouraging its second vice-president, Yolanda Díaz, to make unfair dismissal more expensive. Last July, she backed a complaint by the UGT (General Workers' Union), which asserted that the regulation of these terminations does not comply with the European Social Charter, and now she has supported another complaint by the CC.OO (Working Council of Workers). This statement paves the way for Díaz to open negotiations to undertake a legal reform of a regulation that, according to the Committee, is currently insufficient for workers and not dissuasive for employers .

The Committee made public this Friday the resolution with which it supports the theses of the union led by Unai Sordo and in which it argues that our country violates article 24.b of the European Social Charter with regard to compensation for unfair dismissal, the reinstatement of the worker in the company and the compensation of temporary workers hired in fraud of law , all of which issues were denounced by CC.OO.

For the organization, the maximum compensation of 33 days per year worked, up to a maximum of 24 monthly payments, does not guarantee adequate compensation or provide sufficient dissuasive relief for employers. It warns that it can "incentivize unfair dismissals" by allowing employers to calculate the cost in advance.

The committee not only focuses on the dismissal, but also emphasizes that Spanish law does not allow the various courts to award additional compensation to dismissed workers, which, in its view, limits the reparation of real damages. It also alludes to the impossibility of the courts ordering the reinstatement of the worker, given that it is the responsibility of the company in the event of unfair dismissal.

The European body's pronouncement is not, however, binding on Spain, but the Minister of Labor is determined to use it as an excuse to make the shift in dismissal legislation that she was unable to do in the 2021 labor reform due to strong reluctance from PSOE members and outright rejection from business organizations.

To adapt the regulation to EU law, which was already broadly outlined a few months ago, Díaz has reiterated her intention to introduce a mechanism so that compensation in an unfair dismissal, and therefore unjustified, is tailored to the individual circumstances of the dismissed worker . As this newspaper reported, this "on demand" dismissal will take into account personal factors surrounding the individual, such as age, number of children, length of contract, or socioeconomic status. The minister's plan is to eliminate the maximum limit of 24 monthly payments.

As ABC has already reported, the second vice president has closed ranks with the president of the government at one of the most delicate moments since she took office, facing various open fronts due to alleged corruption cases and polls showing negative voting intentions. But the Minister of Labor also wants to capitalize on this toll, which this week caused her disappointment in Congress, where she was accused of being an "accomplice" by the main opposition party. In exchange for this support , she has demanded that Sánchez back her social agenda , in which the increase in the cost of dismissal is a key focus.