• Companies multiply their inquiries to make labor restructuring in the face of uncertainty

If the

European Committee of Social Rights

issues a favorable resolution to the

UGT claim

for the

cost of dismissal in Spain,

this will force a change in the legislation that will result in

personalized compensation

, greater judicialization of dismissals and, in some cases,

less contracting,

according to different lawyers consulted by this means.

UGT

's claim

before this Committee is based on the fact that

severance pay in Spain

only grants

33 days per year worked

to those dismissed

without just cause

, unfairly, a compensation that the union considers insufficient and contrary to

agreement 158

​​on termination of the employment relationship of the International Organization of Workers and

article 24 of the European Social Charter

, which the Government of Spain fully ratified in 2021.

This Committee admitted the claim for processing after giving

favorable opinions to the

Italian

and

French

unions

, which had also filed claims against their respective legislation, hence it seems very likely that the Spanish one will also come to fruition.

After admitting it, the Committee has requested allegations from the Government, employers and unions.

"The Italian unions filed this claim in 2017, alleging that the

regulation of dismissal

in Italy violated article 24 of the European Social Charter and

they agreed with a system that

, at that time,

was very similar to the Spanish one.

The French also They filed a collective claim and this year they have obtained a favorable decision on the merits that was issued in the same week that our claim was admitted for processing. I don't think it's coincidental," explains

Fernando Luján,

UGT

confederal secretary

, to this outlet.

that he is "very optimistic".

After the resolutions, the legislation of those two countries is being adapted, which is the same thing that would have to happen in Spain in the event that the Committee issues a resolution in its favor, especially given that

the current Ministry of Labor is very prone to this change.

.

"In

France

we are aware that

the current compensation system

has been

questioned by some judicial instances

that have refused to apply it, judging

the amount of compensation

granted to the worker too low," explains Elena Esparza, Labor Partner at

CMS Albiñana & Suárez de Lezo.

In the event that it ends up being modified in Spain, Luján believes that "the most intelligent thing would be to negotiate it in the social dialogue and that the change be incorporated into the new Statute for Workers of the 21st Century that the Government is promoting."

They are in favor of recovering the

compensation of 45 days

per year worked for unfair dismissals, to which

a plus should be added depending on the conditions

of the dismissed person.

"It is the same as with traffic accidents

: the culprit does not pay the same if there is a 15-day leave or if the victim loses a leg or dies. Depending on the degree of non-compliance there is one penalty or another. Why if "This seems good to us, do we not understand that it should be the same with unfair dismissals? They are

unjustified dismissals

that are carried out unfairly and without reason. So some parameters should be applied depending on the characteristics of the people and their conduct," he alleges.

More litigation and less contracting

Among the side effects of the change, there could be an

increase in the prosecution

of dismissals and an

impact on hiring,

since it could be more "difficult" and more expensive for companies to make unfair dismissals.

"

It could be assisted in the face of a historic change

in the regulation and in the consequences of unfair dismissal in Spain given that, to date, an appraised calculation system has been established that does not allow the legally provided compensation to be modulated. On the other hand, with what is intended,

the Economic consequences would be uncertain

and would be subject to each case on the basis of eventual compensation and other dissuasive compensation," explains

Alfredo Aspra,

partner at

Labormatters Abogados , to EL MUNDO

Ana Gómez,

labor partner at

Ceca Magán Abogados,

believes that "for companies, it will generate

great legal uncertainty,

since severance pay is a fundamental chapter of company costs that is decisive when it comes to attracting investment and promoting the economy in general. It is possible that it will

condition the generation of new jobs

and will foreseeably slow down the improvement of the strong unemployment rate".

"The debate on the compensation system in our country is closely linked to the external flexibility of companies in crisis situations. In practice

, unfair dismissal is mostly used

because the appropriate termination continues to be extremely complex and costly for companies," he points out. .

Inequality between workers

The regulatory change that could arise after this process seeks

to benefit workers

, but some experts warn that it could entail

a risk of inequality

.

"The current compensation calculation system (...) is based on the application of an objective scale through two criteria linked to the employment relationship:

salary

and

seniority

. This provides unquestionable legal certainty and frees the worker of having to prove the damage suffered, its quantification and the causal relationship. In addition, it guarantees the equality of all workers", points out

Bernardo Pérez-Navas

, partner of Laboral de

Garrigues

, which recalls that this criterion for the calculation is the one used mostly in Europe.

This expert maintains that the change would generate

greater litigation

and would suppose "undoubtedly

legal uncertainty

for workers and companies."

"It cannot be directly concluded that a change of this type will necessarily be beneficial for the workers," he points out, since

the worker would have to prove the damages suffered

.

In addition, since it is intended to provide protection to those who have more difficulty finding a

new job

, the system could "

disincentivize the search for a new job,

since a worker who quickly finds a new occupation after being fired would not suffer a loss that compensate or said damage would be less".

With the change, it would seek to protect

older workers, among other groups,

who, when laid off, usually have more difficulty finding a new position, hence they should be better compensated.

However, the Garrigues expert warns that if "an employee who is reasonably close to retirement age is fired, we can understand that the damage caused by a dismissal would be less than that of a younger worker. This It will most likely lead to a less beneficial result than the current norm, and could even lead to the absence of compensation if the worker had the option of

retirement

with full rights (...) This may mean that

some groups that are intended to be protected are precisely harmed".

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