Overview

• The European Committee of Social Rights unanimously ruled on June 26, 2025 that Spain’s maximum severance limits fall short of covering real losses or deterring wrongful dismissals.
• For the second time since July 2024, the committee found that Spanish law breaches Article 24 of the European Social Charter by excluding indemnities based on actual harm.
• The CEDS urged that national courts be empowered to order readmission of unfairly dismissed workers rather than restrict reinstatement to cases of null dismissal or union representation.
• Trade union CCOO, which filed its complaint in November 2022, is pressing for legislative amendments, backed by the Ministry of Labor but resisted by key coalition partners.
• Judges may use the ruling to award higher severance payments in individual cases, and employers could seek clearer statutory limits to avoid legal uncertainty.