Overview

• The Supreme Court held on July 16 that judges lack authority to increase statutory unfair dismissal indemnities in civil cases.
• The ruling confirms that Spain’s capped severance pay does not violate Article 10 of the ILO’s Convention 158 or Article 24 of the Revised European Social Charter.
• In its interpretation, the court deemed the Charter’s “right to adequate compensation” a programmatic goal rather than a self-executing right.
• The decision, issued by a non-unanimous panel, builds on a December judgment; it decisively rejects calls for broader judicial remedies following the Charter’s ratification.
• A full version of the judgment will be published in the coming days, offering detailed guidance to employers and lower courts.