Decision of the European Committee of Human Rights
The European Committee of Human Rights (ECHR) has pointed out the need to reform the severance pay system in Spain. According to the ECSRC, the current model does not adequately consider factors such as the impact of the dismissal on the worker’s career and personal circumstances. In addition, it lacks a “deterrent effect” for employers, which could encourage unjustified dismissals.
Publication of the Evaluation
The full CEDS assessment will be made public next Monday. This decision has generated significant debate within the coalition government, with opinions divided among different ministries.
Government positions
The Ministry of Labor has expressed that it would be appropriate to review the 2021 labor reform again, suggesting that changes should be introduced to better align with the ECSR recommendations and strengthen worker protection. On the other hand, the Ministry of Justice argues that Spain already complies with the European bill of rights, suggesting that no additional reform is necessary at this time.
Implications and Future
The CEDS ruling could have important implications for the Spanish labor market. If the recommendations are adopted, severance payments could be adjusted to better reflect the individual circumstances of workers and increase the liability of employers. This debate marks a crucial moment in the evolution of labor law in Spain.
In summary, the European Human Rights Committee’s assessment of severance pay has initiated a debate on the need for a new labor reform in Spain, with diverging opinions within the coalition government.
