Overview
- CEOE president Antonio Garamendi announced the withdrawal, saying the executive committee decided the group will leave the negotiation table on dismissal rules.
- The Labour Ministry led by Yolanda Díaz convened an initial meeting this week, which CEOE attended to hear the plan, but no formal proposal was presented.
- The reform is part of the PSOE–Sumar program and follows European Committee of Social Rights findings that Spain’s capped severance is not sufficiently dissuasive.
- In July, Spain’s Supreme Court ruled courts cannot increase statutory unfair‑dismissal compensation and deemed CEDS decisions non‑executory, pointing to the need for legislation.
- Garamendi indicated CEOE could challenge a future minimum wage move in court, while Cepyme highlighted pressure on smaller firms, citing the loss of about 23,000 microenterprises in five years.